Thai Exporters Wary Of Saudi Investors

Thailand rice exporters have expressed concern over the rice farming plans of Saudi Arabia-based investors in African countries, which they believe will inevitably affect Thailand's future rice exports.

Gulf nations also eyed Southeast Asia but Thailand opposed the investment while its neighbors lack the necessary infrastructure.

"It is certain that rich countries like Saudi Arabia will seek investments to build up self-sufficiency and lessen any impact from a possible food crisis," said Chookiat Ophaswongse, the president of the Thai Rice Exporters Association.

Saudi Arabia buys rice mostly from the United States but an attempt to supply rice from the project to the Middle East could eventually affect Thai rice exports, he said.

Africa was the largest importer of Thai rice last year, accounting for about 15% of Thailand's 10 million MT of rice exports in 2008.