Cambodian farmers harvesting rice.Vietnam, Cambodia to be formidable rivals
Published: 3/01/2012
Writer: Phusadee Arunmas
Bangkok Post
Thai Hom Mali rice exports will face tougher competition from Vietnam and Cambodia in 2012 as the rice from both countries has gained higher acceptance among foreign consumers, according to an industry group.
Thai major markets for Hom Mali rice are Hong Kong and Singapore, which generally buy newly harvested rice during the Chinese New year, but Vietnamese fragrant rice will be out in the market in March, said Chookiat Ophaswongse, honorary president of the Thai Exporters Association (TREA).
Vietnam set the target of exporting 800,000 to 1 million tonnes of fragrant rice in 2011, up from 500,000 tonnes in 2010. The amount is much higher than five-figure volumes which Vietnam shipped in the past 3-4 years. Hanoi also encouraged its rice farmers to cultivate more fragrant rice.
Mr Chookiat said Hong Kong rice traders told Thai exporters that the Vietnamese fragrant rice has been increasingly popular in the market thanks to its softness and aroma. The only disadvantage is the physical appearance of being a short-grain variety.
Vietnamese fragrant rice sells for US$670 a tonne, far below Thai Hom Mali at $1,100.
He said Hom Mali rice also faced competition from Cambodian fragrant rice, which is sold at over $800 a tonne. The Cambodian rice has a comparable quality to Thai rice in terms of aroma and appearance.
Thailand exported around 10.7 million tonnes of rice in 2011, of which 30% was fragrant rice.
Korbsook Iamsuri, the TREA's president, said Thailand might not be able to ship 9 million tonnes of rice in 2012 due to competition from cheaper rice from India and Vietnam.
If India exports only 2 million tonnes of rice as earlier announced and Vietnam has the policy to lift its rice price for exports, Thailand may end up shipping 9-10 million tonnes.
The risk factor impacting the exports of Thai rice in 2012 is mainly India rather than the government's mortgage scheme. Cheap Indian rice pulls down global prices, making Thai rice uncompetitive.
India and Vietnam sell 5% white rice at between $400-450 a tonne while the Thai price of the same grade is at $550-570.
"The government wants the export price to be $800 a tonne but this will be difficult. At the current level, we are barely competitive," she said.
Thai Hom Mali rice exports will face tougher competition from Vietnam and Cambodia in 2012 as the rice from both countries has gained higher acceptance among foreign consumers, according to an industry group.
Thai major markets for Hom Mali rice are Hong Kong and Singapore, which generally buy newly harvested rice during the Chinese New year, but Vietnamese fragrant rice will be out in the market in March, said Chookiat Ophaswongse, honorary president of the Thai Exporters Association (TREA).
Vietnam set the target of exporting 800,000 to 1 million tonnes of fragrant rice in 2011, up from 500,000 tonnes in 2010. The amount is much higher than five-figure volumes which Vietnam shipped in the past 3-4 years. Hanoi also encouraged its rice farmers to cultivate more fragrant rice.
Mr Chookiat said Hong Kong rice traders told Thai exporters that the Vietnamese fragrant rice has been increasingly popular in the market thanks to its softness and aroma. The only disadvantage is the physical appearance of being a short-grain variety.
Vietnamese fragrant rice sells for US$670 a tonne, far below Thai Hom Mali at $1,100.
He said Hom Mali rice also faced competition from Cambodian fragrant rice, which is sold at over $800 a tonne. The Cambodian rice has a comparable quality to Thai rice in terms of aroma and appearance.
Thailand exported around 10.7 million tonnes of rice in 2011, of which 30% was fragrant rice.
Korbsook Iamsuri, the TREA's president, said Thailand might not be able to ship 9 million tonnes of rice in 2012 due to competition from cheaper rice from India and Vietnam.
If India exports only 2 million tonnes of rice as earlier announced and Vietnam has the policy to lift its rice price for exports, Thailand may end up shipping 9-10 million tonnes.
The risk factor impacting the exports of Thai rice in 2012 is mainly India rather than the government's mortgage scheme. Cheap Indian rice pulls down global prices, making Thai rice uncompetitive.
India and Vietnam sell 5% white rice at between $400-450 a tonne while the Thai price of the same grade is at $550-570.
"The government wants the export price to be $800 a tonne but this will be difficult. At the current level, we are barely competitive," she said.
2 comments:
Cambodian rice hadn't even begun to export yet, and Thailand is already feeling the pain. Just wait until Cambodian rice export become fully operational. Thailand will be losing out. Vietnam will be next.
Cambodian rice exporters had good relationships with Chinese rice importers, which is a good sign. China is the most populated country and the biggest rice consumer. When Cambodian rice industry got off the ground and Chinese companies began their full imports, Cambodian farmers could be rich if Hun Sen can stop the land evictions and land grabbing.
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