According to the latest attache report by the U.S. Department of Agriculture, Thailand's 2006-07 white rice production in northern and central regions is likely to decline slightly from the previous years mainly due to the damage caused by flooding.

The good news however is that the supplies are most likely to ease by the end of March as bumper second-crop production is expected in the north and central regions, which account for around 95 percent of total second-crop white rice production.

In 2006, despite a contraction in low-quality rice exports, Thai white rice exports increased slightly due to a sharp increase in premium white rice exports, particularly to Iran and Iraq.