Thai Rice Exports May Rise Above Target This Year

Thailand's rice exports this year may rise above targeted levels, thanks to demand from key importers and limited supply in other exporting countries, Chookiat Ophaswongse, president of the Rice Exporters Association of Thailand, said in an interview with Dow Jones Friday. "Rice exports this year is expected to reach 8.7 million (metric) tons, given the high demand in world markets for Thai rice," Chookiat said. 
 
The Thai government has set a rice export target of 8.5 million MT for 2007, a rise of 16.4% from 7.3 million MT exported in 2006. Thailand, the world's largest rice exporter, has already exported 2.52vmillion MT of rice as of April 25 this year, up by 11.8% on year, the Commerce Ministry's Department of Foreign Trade said Wednesday. 
 
Chookiat said Indonesia, which has emerged an enthusiastic buyer after unfavorable weather conditions reduced rice production there, plans to import up to 2.2 million MT of rice in 2007, to fill a domestic shortfall in supply.
 
  Indonesia had imported only 600,000 tons of rice in 2006. "Indonesia has no choice but to import more rice this year, while Vietnam has almost sold out, so we can gain huge export opportunities in the Indonesian
market," Chookiat said.
 
  Vietnam has already signed contracts to export 3 million MT of rice of a total target of 4 million to 4.5 million MT this year. Rising demand mainly from Indonesia, China, and countries in Africa are expected to help sustain Thai rice export prices, he added. 
 
Thai 100% B grade rice is currently offered at around $325 a metric ton, free-on-board Bangkok. Thailand will likely produce more rice for export, given its favorable climate, sufficient rainfall and anti-drought measures in the rice growing areas, he said.