Eyeing to be No. 1 again
Thailand sees return as the top rice exporter in the world
BANGKOK: Two years after losing its place as the world’s biggest rice exporter, Thailand is eyeing a return to the top spot as the impact of a bungled subsidy scheme eases and it sells cheaper grain to a grateful global market.
The subsidy, which offered farmers up to 50% above market rates for their rice, helped former premier Yingluck Shinawatra win the rural votes she needed to take office in 2011.
But it also sent tremors through the world market before spectacularly unravelling, leaving Thailand with around 18 million tonnes of over-priced rice and Yingluck skewered by a corruption charge.
Thailand was pushed off the top spot by India in 2012, as buyers hit back at the kingdom’s attempt to fund the costly subsidy by driving up global prices through grain hoarding.
India and Vietnam moved swiftly to gobble up Thailand’s crumbling market share, with the Indian government rapidly releasing more of their own rice for export.
Thailand’s junta, which seized power in May, ended the rice scheme soon after the coup and is flogging stockpiles to soften the price of Thai rice to around US$450 a tonne - comparable to India and Vietnam.
Many now predict the kingdom’s industry is again set to surge.
“I’m sure we can get back our world title this year,” said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association.
From January until September 2, the kingdom sold seven million tonnes of the grain - already more than for the whole of 2013 - according to Chookiat.
It should sell 10 million tonnes