Rice exports likely to drop 50% this year, situation could even worsen in 2021

[webfact]

Rice exports likely to drop 50% this year, situation could even worsen in 2021

By THE NATION

 

 

The Thai Rice Exporters Association estimates total rice exports for 2020 at 5 million tonnes, only half of last year’s figure of 10 million tonnes, honorary president Wichai Sriprasert said.

 

“Next year the situation could be worse as the water level in 35 major dams is still lower than the previous year’s, while the rainy season will end soon. Therefore, rice output in 2021 could be lower than this year.” he warned.

 

“Furthermore, China now has more than 100 million tonnes of rice in their stocks, so they can compete with us in foreign markets such as Africa by using a price cutting strategy, as our rice production costs are still higher than those of our competitors.”

 

Wichai said that due to drought, the cost of rice production is Bt8,000 per tonne, while other rice producing countries such as China, Vietnam, India and Myanmar are witnessing a cost of around Bt6,000 per tonne.

 

“This makes Thai rice more expensive that foreign rice by around $100 per tonne. Luckily in some countries such as India, the Covid-19 situation has resulted in a nationwide lockdown and crippled their logistics system, forcing them to import rice from us,” he said.

 

“It is estimated that when India’s Covid-19 situation improves, they will have over 30 million tonnes of rice on their hands and Thai rice would no longer have the chance of penetrating their market,” Wichai pointed out.

 

“Thai farmers and related authorities need to focus on cost reduction and developing water resources for rice paddy. Currently, our irrigation system is not comprehensive enough, causing farmers whose paddy is far away from reservoirs to spend extra on water pumps, thus further increasing their production costs,” said Wichai.

 

“We also need to conduct research on new breeds of rice to penetrate new markets, or risk losing the opportunity to Vietnam, which has introduced several new rice breeds in the last few years,” he added.

 

Source: https://www.nationthailand.com/news/30397373

 

-- © Copyright The Nation Thailand 2020-11-05

 

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[Grumpy John]

"Wichai said that due to drought, the cost of rice production is Bt8,000 per tonne "  His numbers seem to be a bit off!  Is he claiming 8000 baht as the cost of procuring paddie, mill production cost not included or is it including mill production cost?  The cost of procuring paddie around here was 8000 baht for ordinary rice a few weeks ago dropped to 7000 before the buyer left, so it's not clear to me what he means! 

 

Just wondering: I assume when the cost of milling is based on mill throughput the bigger mill will have lower per kg cost and a better profit....which has nothing to do with his argument.

[Cake Monster]

Until Thailand can reduce the price of its Rice for Export, the Market is going to continue to shrink for the Producers.

Cambodia just a few days ago said their Rice Exports were up 17% on the Year, and with Thai Rice about 6 - 10% more expensive than other major Rice producing Nations such as Cambodia, Vietnam, Myanmar, and India, who is going to buy it.

At the quoted $100 per tonne more expensive that would mean a cost per Kg for a Family of about 31 Baht, which is a lot of Money to poor Families to feed themselves.

[whiteman]

it is all down to the middle men ripping the rich farmers off when will they ever learn

[Youlike]

A few months ago i read here that because of corona the Thai rice was sold out in record time...To the middle east iirc...

 

 

[baansgr]

XE dosnt help...

[DLock]

"Luckily in some countries such as India, the Covid-19 situation has resulted in a nationwide lockdown and crippled their logistics system, forcing them to import rice from us,” he said.

 

...probably could have phrased it better.

[Srikcir]

Good for the CPI but not for farmers trying to survive.

[hotchilli]

10 hours ago, webfact said:

Rice exports likely to drop 50% this year, situation could even worsen in 2021

OMG Thailand is doomed two top money earners devastated, rice and service girls.

Wonder what the service industry will do... stay at the resort and not earn anything to send home, go home and rice has crashed... how times change.

[kickstart]

3 hours ago, whiteman said:

it is all down to the middle men ripping the rich farmers off when will they ever learn

Where did the word rich come from ,not part of most Thai rice farmers vocabulary, most rice farmers do not make a  lot of money ,wife's  son-in-law has to find rent money 1200 baht/rie ,year, most buy fertilizer, sprays etc on credit .plus interest of course.

Most farmers only have one crop a year ,yields not that high ,a lot due to the poor land ,in a lot of areas as the op said drought is a problem ,not a good year,not a lot of money to be made.

This ,so I have been told wait and see ,they is a guaranteed   price of 15000 baht/ton this year , so the middle men can not rip the farmers off ,

 

 

[Autonuaq]

http://siamriceexport.com/riceprice.html

 

here is an overview in U$D of rice.

the man in the middle is making a lot

 

like many other things Thailand is getting to expensive, that is also why companies are relocating.

 

as well tourist that the moved on to other places before Covid-19. 

Edited November 5, 2020 by Autonuaq

[Venom]

I hope that means less field burning 2.5 PM pollution this high season. Would be awesome to be able to actually see the stars or moon, not to mention the mountains in and around Chiang Mai this year.????

[RichardColeman]

I would propose the Indian market has gone due to the nonsense baht rate over 5 years destroying Thai exports

[Redline]

More loans should help ????

[grego49]

9 hours ago, Venom said:

I hope that means less field burning 2.5 PM pollution this high season. Would be awesome to be able to actually see the stars or moon, not to mention the mountains in and around Chiang Mai this year.????

And Kanchanaburi too,,

[fulhamster]

10 hours ago, Autonuaq said:

http://siamriceexport.com/riceprice.html

 

here is an overview in U$D of rice.

the man in the middle is making a lot

 

like many other things Thailand is getting to expensive, that is also why companies are relocating.

 

as well tourist that the moved on to other places before Covid-19. 

It has been expensive for 6 years now.

Vietnam made the obvious decision to devalue.

Just a suggestion to those up in the BoT towers

[Artisi]

Must be fake news, designed to undermine of glorious leader.... 

[Cake Monster]

14 hours ago, kickstart said:

Most farmers only have one crop a year ,yields not that high ,a lot due to the poor land ,in a lot of areas as the op said drought is a problem ,not a good year,not a lot of money to be made.

It has been widely known for many Years now that most Thai Rice growers are trying to grow their crops on Land that is totally unsuited to Growing Rice, which by its very nature will make the Rice crop more expensive.

OK, if that is the case, why are the Farmers not growing alternative crops that will A. Grow better  and most cost effectively and B. Have a market that is more suited to making a profit.

Is it a lack of knowledge, or the fear of moving away from the crops they know, but for what ever reason, the Farmers need to reset.

 

[Artisi]

6 hours ago, Cake Monster said:

It has been widely known for many Years now that most Thai Rice growers are trying to grow their crops on Land that is totally unsuited to Growing Rice, which by its very nature will make the Rice crop more expensive.

OK, if that is the case, why are the Farmers not growing alternative crops that will A. Grow better  and most cost effectively and B. Have a market that is more suited to making a profit.

Is it a lack of knowledge, or the fear of moving away from the crops they know, but for what ever reason, the Farmers need to reset.

 

Are you considering that logic should be applied.?

Plus it's not only Thailand where farmers always cry about their poor return when farming marginal land and is some places extremely marginal land. 

 

[Youlike]

7 hours ago, Cake Monster said:

It has been widely known for many Years now that most Thai Rice growers are trying to grow their crops on Land that is totally unsuited to Growing Rice, which by its very nature will make the Rice crop more expensive.

OK, if that is the case, why are the Farmers not growing alternative crops that will A. Grow better  and most cost effectively and B. Have a market that is more suited to making a profit.

Is it a lack of knowledge, or the fear of moving away from the crops they know, but for what ever reason, the Farmers need to reset.

 

What's not widely known in Thailand is that rice doesn't need copious amounts of water to grow..it doesn't need to grow under water and will grow on normal land.  

[Stevemercer]

The high Baht (which the Thai Government continues to support by doing little to contain it) is responsible for most of the extra costs for export rice.

[djayz]

On 11/5/2020 at 8:55 PM, kickstart said:

so the middle men can not rip the farmers off

They always find a way... Dog eat dog. 

[fulhamster]

On 11/7/2020 at 4:43 PM, Stevemercer said:

The high Baht (which the Thai Government continues to support by doing little to contain it) is responsible for most of the extra costs for export rice.

I think you'll find that they actively encourage it.

How else to explain it ??