Bangkok, April 21 - Thailand has more than enough rice to meet Hong Kong's demand of 300,000 tonnes this year, a senior Thai trade official said on Monday, trying to scotch rumours importers are switching to cheaper mainland Chinese rice.
"Hong Kong importers have confirmed they will not buy less than last year and we have ensured them we have ample rice to sell," Apiradi Tantraporn, head of the Commerce Ministry's Foreign Trade Department, told reporters.
"Hong Kong importers told us they will keep buying despite high prices," she said on her return from a weekend visit to Hong Kong to play down rumours buyers were shifting to rice from China because it is cheaper.
The price of rice from Thailand, the world's number one exporter, has more than doubled this year due to concerns about supply following India's banning of the exports of non-basmati rice and Vietnam's restrictions on shipments.
Suspected hoarding by traders and millers has exacerbated the problem, pushing up prices yet further.
Benchmark Thai 100 percent B grade white rice was quoted at a historic high at $950 a tonne this week, up from $383 earlier this year.
Thai 100 percent fragrant rice, the top notch grade sold mainly to restaurants in wealthy countries such as Hong Kong and Singapore, surged to $1,200 per tonne from $671 a tonne early this year.
Exporters and commerce ministry's officials plan to visit customers in China and Singapore soon to assuage fears of a rice shortage among its long-term customers, Apiradi said.
Hong Kong, Thailand's second largest importer of fragrant rice in Asia after China, buys around 300,000 tonnes of Thai rice annually, according to ministry data.
China bought 460,000 tonnes of Thai rice last year, of which 90 percent was premium grade fragrant rice.
Thailand sold 9.4 million tonnes of rice last year and aims to export 8.75-9.0 million tonnes this year, of which around 2 million tonnes are premium grade fragrant rice, Apiradi said.
"This year we will keep the target of 2 million tonnes of fragrant rice as demand remains strong in our traditional markets," she said.