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Thai 2008 Rice Exports Seen Above 9 Million Tonnes

Source: Reuters
09/05/2008

Bangkok, May 8 - Thailand, the world's biggest rice exporter, is expected to sell more than 9 million tonnes of rice overseas this year due to strong demand, Commerce Minister Mingkwan Sangsuwan said on Thursday.

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"Right now we have combined overseas rice orders from several countries of 6.7 million tonnes, plus what we have sold since early this year," Mingkwan told reporters. "Our total rice export could exceed 9 million tonnes."

Thailand has exported 4 million tonnes of rice so far this year.

The new rice export outlook of around 20 percent higher than 9 million tonnes was due to increasing supply and strong demand, Mingkwan said.

"Increasing supply is one positive factor, signalling that we have plenty of rice for increasing exports," he said.

Thailand was estimated to have 4.2 million tonnes of rice from the second crop, plus another 1 million tonnes from the third crop as soaring prices encouraged farmers to grow more.

Several rice importers who used to buy rice from India and Vietnam would now have to buy rice Thailand, the only rice supplier in the world after the two leading rice exporters banned shipments in a bid to ensure they have emough food for their people, he said.

"Everybody turns the spotlight on Thailand and this year will be the golden year for Thai rice exports," Mingkwan said.

He said Thai rice prices should remain firm for the rest of the year as prices which have faced a correction in line with global values should attract more buyers in the second and third quarters of this year.

Thai rice prices tripled to above $1,000 a tonne for the benchmark 100 percent B grade white rice, up from $383 quoted in January.

However, sky-high prices forced buyers to hold back orders, pulling prices down in late April, and traders expected that strategy should lure more buyers to come back to the market.

Mingkwan said he had several inquiries to buy Thai rice from countries such as Sri Lanka, East Timor, Hong Kong, Nigeria and Malaysia.

Malaysia has bought 500,000 tonnes of 5 percent and 15 percent broken rice from Thailand for prompt shipment, a Thai government spokesman said on Thursday.



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