Grim prospects for Thai rice exports in 2013

Thailand’s rice exports in the first two quarters dropped by 8.4 percent and the prospects in the second half of the year remain bleak, according to a leading rice trader.
Chookiat Opaswong, honorary chairman of the Thai Rice Exporters Association, said Thailand exported only 2.9 million tonnes of rice, worth Bt61.988 billion from January - June, a 7.8 percent decline year-on-year.
The tough competition in the rice market was intensified by the global economic downturn, he said.
He cited continuous rice imports by China, the government’s release of rice from its stockpiles into the market, government-to-government deals with rice importing countries and the reduction of rice pledging prices as the positive factors for the domestic rice market.
But there are challenges, Chookiat said, particularly the mass releases of rice from Vietnam and India into the global market while the price of Thai rice is higher than Thailand’s competitors.
In the long run, old and new rice exporters are concentrating on boosting their exports and penetrating the high-quality rice markets which offer better prices, he said.
The US Department of Agriculture has predicted a reduction in global rice trade by 4 percent, or at 37.5 million tonnes, lower than last year’s 39 million tonnes.
Thailand’s rank in the global export market is slipping to third, with an export volume of seven million tonnes, lower than India at nine million tonnes and Vietnam at 7.4 million tonnes.
This year’s total rice exports are predicted at 6.5 million tonnes despite the Commerce Ministry’s target at 8.5 million tonnes, he said.
Chookiat said this year’s global rice market will expand only slightly, while current rice stocks in Thailand and India are 17 million tonnes and 30 million tonnes respectively.
The five top importers of Thai rice are Iraq at 410,000 tonnes, Benin at 330,000 tonnes, the US at 180,000 tonnes, Japan at 170,000 tonnes and Cote d’Ivoire at 150,000 tonnes. (MCOT)

Thai rubber cooperatives cry for help

The Thai government should adopt a policy of reducing rubber production and compensate planters for the lost revenue in an attempt to salvage declining rubber prices, a leading rubber planter said last week.
Perk Lertwangpong, president of the Rubber Planter Cooperatives of Thailand, said cooperatives nationwide have been asking for government price support for rubber for nearly two years and proposed to reduce production of rubber by 500,000-1,000,000 tonnes a year.
The government should not be in a hurry to sell over 200,000 tonnes of rubber in stock but rather sell it to private tyre manufacturing factories or mix the rubber with asphalt for road construction, he said.
In Phatthalung, one of the major rubber producing provinces, planters have processed rubber milk - latex - as sheets which gives them Bt3-5 higher per kilogram.
Niran Theprat, chief of the Rubber Education Centre in Phatthalung, said rubber sheets can be kept and sold when the market prices are higher. (MCOT)

Oil slick causes Bt100 million damage on Samet Island

Damage from the oil slick from an offshore pipeline in the sea off Rayong was preliminarily estimated at Bt100 million baht on Samet Island alone, a leading tourism industrialist said Aug. 1.
Piyamarn Techapaibul, president of the Tourism Council of Thailand, said the damage could have been worse if the rupture occurred during the high season, but an impact assessment on the environment and other aspects must be conducted later.
She said Thailand has experienced nine oil spills in the last decade, indicating that such an incident should not happen too often.
Piyamarn called for clear explanations on the responsibilities of state agencies concerned in coping with the spill and prevention measures.
Tourism entrepreneurs in Surat Thani where an oil drilling platform is located off the coast have also expressed concern and sought assurances on safety measures.
Ao Prao on Samet Island has been severely hit by the oil slick but the tourism business at other beaches in Rayong has remained unaffected, according to the Tourism Business Association in Rayong. (MCOT)

Thailand’s July inflation rate 2% higher

Thailand’s inflation in July was 105.42, a 2 percent increase year-on-year, according to permanent secretary for commerce Vatchari Vimooktayon.
She said the inflation was slightly down from June, which was up by 2.25 percent and pressure on inflation has lessened given six consecutive months of slowdown, while prices of fresh foods were on the decline.
The price index of food and non-alcoholic beverage sector was 2.81 percent higher due to a 4.43 percent increase in prices of vegetables and fruit, as well as an increase of 4.41 percent for eggs and milk, while retail prices of fuel have not been adjusted.
The prices of 158 items of merchandise were higher, 93 items lower and 100 items unchanged, contributing to an average inflation at 2.60 in the first seven months of the year, which was lower than predicted.
The overall inflation may be 2.80-3.40 percent lower than forecast in accord with the economic slowdown.
Vatchari said the gradual increase of liquefied petroleum gas by 50 satang per kg from September until the end of the year will affect inflation by only 0.006 percent per month,
She called on the public to be more careful in their spending despite a belief that most traders will not increase the prices of their goods. (MCOT)