Commerce Ministry: Rice mortgaging scheme not affect rice exporters


BANGKOK, 22 May 2012 – The Commerce Ministry has insisted that the government’s rice mortgaging scheme does not affect Thai rice export, saying Thailand is the world’s number one rice exporter in the first four months this year. 

Permanent Secretary for Commerce Yanyong Phuangrach said Thailand exported 2.7 million tons of rice, the most in the world, in the first four months of this year. The United States and Vietnam came in second and third most in the world.

Mr Yanyong said the government’s rice mortgaging scheme, under which rice is sold at 15,000 baht per ton did not affect the competitive edge of Thai rice exporters, adding that the scheme helps push global rice price from 566 dollars per ton last year to 669 dollars this year.

According to the permanent secretary, Thailand exported 10.6 million tons, worth 200 billion baht in 2011. This year the Commerce Ministry has set the target at 8.5 million tons, which is lower than last year’s given many crops were damaged from the flood. But it is expected that the value of rice export this year will be over 200 billion baht.

In the meantime, the ministry is prepared to hold the Thai Rice Fair in Nakhon Sawan Province from May 25-27, with over 100 types of Thai rice on offer. A conference on world rice standard and business matchups will also be held.