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Thai 2008 Parboiled Rice Exports to Africa May Hit 3M Tons-Association (DJ)

Source: Dow Jones Newswires
21/11/2007

Bangkok, Nov. 21 - Thailand expects to export as much as 3 million metric tons of parboiled rice to Africa in 2008, up from 1.8 million tons a year currently, Chookiat Ophaswongse, president of the Rice Exporters' Association of Thailand, said Wednesday.

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"I expect parboiled rice exports to Africa to total 2.5 million tons by year-end, and they could even hit 3 million tons next year," said Chookiat.

Demand from Africa for Thai parboiled grades has surged due to India's ban on non-basmati rice exports, including parboiled, as buyers have no choice but to buy from Thailand, which is now the only available supplier of parboiled grades in the region, he said, adding that Indian rice farmers have switched to growing more lucrative crops such as wheat.

He said Africa is also stepping up imports of Thai rice in line with the continent's rapidly growing economies.

"Strong demand from Africa has significantly increased Thai rice export prices of parboiled rice to unusually higher levels than white rice," he said, adding that parboiled rice is normally about 5% cheaper than 100% grade B rice.

Parboiled 100% sortexted is currently offered at $370 a metric ton, free-on-board Bangkok, while 100% grade B is offered at $350/ton.

Thailand is the world's largest rice exporter. It exported 7.5 million tons of rice in 2006 and is likely to ship around 9 million tons in 2007.



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