The Edge Daily
April 16, 2008
BANGKOK: Surging global demand caused Thailand to export 66% more rice in the first quarter of 2008 from the same period last year, Commerce Minister Mingkwan Sangsuwan said on Wednesday.
However, he said the world's number-one rice exporter, whose market share is set to rise due to recent export restrictions imposed by Vietnam and India, would not be raising its overall target for the year of nearly 9 million tonnes.
Mingkwan also reaffirmed that there was no need to release rice from a 2.1 million tonne government stockpile, as another 4.2 million tonnes of milled rice from the country's second annual crop was expected to hit the market this month.
"I'm sure that we will have ample supply for domestic consumption and exports so we don't need to release the stock," he told a news conference.
Between January to March 2008, Thailand exported 3.26 million tonnes, up from 1.96 million tonnes a year earlier, following India and Vietnam's decisions to restrict exports to protect domestic supply.
"That makes us feel confident that we could export up to 9 million, as we aimed earlier," he said.
Thailand exported 9.4 million tonnes of rice in 2007 and expects to sell up to 8.75 million to 9.0 million tonnes in 2008.
With the moves by Vietnam and India, Thailand expects to expand its share of the global rice market to 40% in 2008, from 31% in 2007, Mingkwan said.
Mingkwan said Thailand was looking to work with other rice exporting countries to ensure more price stability, starting with a visit by his Indian counterpart on April 27.
However, traders were sceptical about the success of any talks, given that the "cooperation" has been bandied about as a theme since 2001 without bringing any concrete results.
"In every county, rice is a political commodity that gets leaders into trouble if they make any mistakes. No one wants to take any action that could harm their farmers," said a trader who asked not to be named.
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International Herald Tribune
April 4, 2008
Thailand, the world's largest rice exporter, has no plans to restrict exports of the grain, the country's finance minister said Friday.
"We don't want to abuse or to artificially influence the market," Surapong Suebwonglee said on the sidelines of a conference of Southeast Asian finance ministers in Vietnam. "For the rice market in Thailand we try to follow (the rules of) supply and demand."
There has been speculation in rice markets that Thailand — like neighbors Cambodia and Vietnam — would act to boost its domestic supply of rice. Rice prices on world markets have jumped 50 percent in the past two months and at least doubled since 2004. Experts blame rising fuel and fertilizer expenses as well as crops curtailed by disease, pests and climate change.
There are concerns prices could rise a further 40 percent in coming months. Vietnam said at the end of March that it will cut rice exports by 1 million tons this year as part of the government's efforts to rein in soaring inflation and ensure food security. Cambodia ordered a ban on exports to curb rising prices in its domestic market.
Surapong's comments echo a recent statement by the Thai Commerce Minister that Thailand won't ban rice exports.
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The Nation
April 19, 2008
"Now, hom mali is the world's most expensive rice. We just sold it at a new record of over US$1,300 per tonne to customers in Hong Kong for May delivery. Singapore, Malaysia and China are also our major customers.
"Looking back some 45 years, a tonne of hom mali rice was just over US$100. Today, we've seen record prices of not only rice, but also crude oil [$120 per barrel], gold [$1,000 per ounce] and other commodities," said Chookiat.
"We're now in the fourth straight month of price upsurge, meaning that prices for all kinds of rice have more than doubled - from $360 to $860 per tonne for white rice and from $620 to $1,300 for fragrant jasmine rice.
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Bloomberg
April 18, 2008
An average household in India spent 32 percent of its income on food last year compared with 6 percent for a household in the U.S., data from the department show. The figure for Indonesia was 43 percent, and 36 percent for the Philippines.
"Poorer countries tend to suffer more than developed countries," HSBC's Neumann said. "It is the poor who shoulder the biggest burden."
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