Rising Thai Prices May Trigger Export Default: Experts

Expressing concern on the rising domestic rice prices in Thailand, president of the Rice Exporters Association of Thailand has said that Thai rice exporters could even start defaulting on orders due to the rapidly rising local prices.

The statement comes after a Thai government rice procurement program aimed in part at reducing hoarding had limited impact.

Thai 100% grade B white rice was being quoted in the local market at THB14,500 PMT, up from THB11,000 PMT in late 2007, and jasmine fragrant rice had risen to THB23,000 PMT from THB17,000 PMT late last year

Thailand's January rice exports are expected to total 800,000 MT, up 25% on year, due to strong demand amid tight exportable supplies.

Thailand, the world's largest rice exporter, is expected to export 8.7 million MT this year, compared with 9.5 million MT shipped last year.