BANGKOK, 19 July 2015 – The Ministry of Commerce says this year’s rice exports are likely to reach the target of 10 million tons as the drought scare has made the global rice market less competitive.
According to Foreign Trade Department Director-General Duangporn Rodphaya, rice exports during the second half of the year are expected to jump thanks to internal and external factors. The lengthy dry season has led to a drop in the country’s rice production, while worries about drought-led food shortages have prompted other rice producers to trim their exports and pushed some countries to begin to stockpile food.
Mrs. Duangporn concluded Thai rice had the opportunity to be in great demand, adding that auctions of the government’s rice stocks should enjoy bigger profits in a near future. However, she indicated that the government still needed to manage the rice stocks carefully and maintain the safety stock of at least five million tons to ensure food security.
Mrs. Duangporn also disclosed that a number of importers showed their interest in an auction of Thai rice between July and August during which time around 900,000 tons of rice is expected to be sold. An auction of substandard rice is also in the pipeline. The Foreign Trade Department chief was confident the rice export volume would definitely hit this year’s target of 10 million tons.