China Demand For Thai Pathum-thani Rice Rises On Lower Price

Demand for Thai Pathum-thani rice has risen in China and
other foreign markets thanks to its big price gap with Hom Mali rice, Charoen
Laothamatas, secretary-general of the Rice Exporters Association, said Friday.
 
  Thai Pathum-thani rice, a cheaper strain of jasmine fragrant rice, is
currently selling for around $420-$430 a metric ton, free-on-board Bangkok,
much lower than $560-$570/ton for Hom Mali rice.
 
  "A difference of (around) $100 is attractive enough for buyers to shift to
Pathum-thani rice," said Charoen.
 
  China intends to buy about 200,000 tons of Pathum-thani fragrant rice this
year, a rise of 22% on year and on par with Hom Mali rice, he said.
 
  Charoen said Chinese restaurants have turned to blending Pathum-thani rice
with locally produced long grain rice.
 
  "I'm concerned that exports of Hom Mali rice might not grow in the future and
could be flat this year," said Charoen, who is also president of Uthai Produce
Co., a leading Thai exporter of jasmine rice.
 
  Last year, Thailand exported about 2.5 million tons of fragrant rice, nearly
half of which was Pathum-thani rice. For the first quarter of 2007, the export
volume of fragrant rice was 800,000 tons, up 23.1% on year.
 
  According to Charoen, Pathum-thani rice has a high competitive edge, since
the grain can be cultivated year round in many provinces.
 
  Hom Mali rice has only one crop a year and is suited for plantations in the
northeast, where water irrigation is not efficient enough to accommodate more
crops.
 
  Charoen added that Pathum-thani rice growers had also improved the grain's
quality.
 
  Yang Hong, general manager of China's leading rice importer and exporter,
Cofco International (Beijing) Ltd., said high-income Chinese were willing to
pay for better quality rice.
 
  "Eating habits of Chinese are changing, and those who have high incomes
prefer Thai jasmine fragrant rice due to its taste and variety," Yang said.