Thailand assures Singapore that rice supply can meet global demand

Channel NewsAsia 16 May 08;

SINGAPORE: Thailand expects to harvest an additional one million tonnes of rice this year because of good weather conditions. The country is revising its 8.7-million-tonne export projection upwards by about 9 percent.

In a meeting with Singapore rice importers, Thailand's Foreign Trade Department has said that supply will be enough to meet global demand.

Thailand hopes to export 9.5 to 10 million tonnes of rice this year – about 35 percent of the global demand. On average, the country produces 20.5 million tonnes of rice annually and about 11 million tonnes of it is for its own consumption.

Thai trade officials said rice prices have stabilised in the past weeks and they believe the market is resilient enough to cope with the recent natural disasters in Asia.

Apiradi Tantraporn, director-general, Department of Foreign Trade, said: "With the cyclone disaster in Myanmar, that means about 500 metric tonnes of rice that Myanmar had expected to export this year were wiped out. But we hope it would not have a high impact on the price."

Ms Apiradi added that Thailand's Agricultural Ministry hopes to improve the efficiency of Thai farmers by helping them to build silos to store excess rice stock.

More rice buyers are expected to turn to Thailand, as India and Vietnam have decided to restrict their rice exports.

Chookiat Ophaswongse, president of Thailand Rice Exporter Association, said: "That's 4 or 5 million tonnes out from the export side. I think Thailand can easily fill up those portions left out by India and Vietnam this year. In the first 4 months, we have already exported up to 4 million tonnes."

Singapore imported over 270,000 tonnes of rice last year and 61 percent of that amount came from Thailand. That is about 3 percent of Thailand's total market share.

Local industry players are glad that Thailand has pledged not to limit the export of rice as they hope the move will help to regulate supply and ease the pressure on prices.

Andrew Tan, chairman of Singapore General Rice Importers, said: "There are (natural) disasters, global warming, and so many other uncertainties. Moreover, the oil prices are shooting to record high.

"All these factors will add up and the price of rice that is going to the market will be higher. Even if the price has an adjustment in the future, I don't see it falling back to the level that it was at a year ago."

Singapore importers said the spike in prices also means that more capital needs to be set aside to fulfil the government stockpile.

Importers are required to contribute two packs of rice to the stockpile for every pack that they sell in the market. It is estimated that the local stockpile could last for three months in the event of a global rice shortage.- CNA/so

Prices of Thai rice set to simmer down
Prices still going up but more slowly; Thai farmers planting more crops and exports stable
Jessica Lim, Straits Times 17 May 08;

THAILAND'S Department of Foreign Trade (DFT) has given the assurance that, even though rice prices are still creeping up, they are doing so more slowly and are likely to become more stable.

One reason for this, said its officials at a briefing here yesterday, is that Thailand - the world's top rice-exporting nation - has been able to keep its rice exports at about 10 million tonnes a year.

The other reason is that Thai farmers are planting more crops to keep pace with demand.

The result: premium grades of Thai rice can be expected to hold steady at about US$1,300 (S$1,794) a tonne, said the Thai Rice Exporters Association.

Rice importers here confirmed that price increases have been less drastic, and the panic that seized consumers here a month ago has eased off.

While the price of Thai rice jumped US$100 to US$200 per tonne a week in March and April, the increases have lately been in roughly US$50 quantums.

The importers say, however, that prices are unlikely to return to last year's levels.

Mr Andrew Tan, who chairs the Singapore General Rice Importers Association, said: 'There is still uncertainty due to natural disasters, as well as ever-rising oil and fertiliser prices. This adds to costs, but jumps are not so great now.'

He pointed out, however, that the recent cyclone in Myanmar could dent the 500,000 tonnes of rice it had planned to export this year.

DFT director-general Apiradi Tantraporn said that, with Thailand consuming half its output of 20 million tonnes of rice domestically, the other half was enough to meet the demand from the rest of the world.

Thailand had no plans to restrict rice exports, she added.

Meanwhile, the high prices have spurred Thai farmers to plant rice instead of other crops, and to aim to harvest five instead of four crops every two years, noted Thai Rice Exporters Association president Chookiat Ophaswongse.

This increased output, he said, would put Thailand nearer its goal of 500,000 tonnes more rice for export this year.

Last year, Singapore brought in 271,000 tonnes - 61 per cent of its total rice imports - from Thailand. This makes up about 3 per cent of Thailand's exports, and puts Singapore in 16th place among Thailand's top importers.

Mrs Apirandi reiterated that Singaporeans need not be afraid that exports of Thai rice will be cut.

'We have seen more stability in the past weeks. We hope everything will go back to normal soon,' she said.

No shortage of Thai rice here
Alicia Wong, Today Online 17 May 08;

NOT only will Thailand continue to supply rice to Singapore, it also intends to up its rice exports.

According to Ms Apiradi Tantraporn, director-general at the department of foreign trade in Thailand's Ministry of Commerce, her country will increase its exports to 10 million tonnes this year, to meet foreign demand.

She assured Singapore that the world's largest rice exporter will not restrict rice exports.

Ms Apiradi said: "There has been concern about panic buying … which happens in many countries. We wanted to, but could not, come here earlier."

Asked if there was a timeframe for how long Thailand could refrain from restricting rice exports, she responded: "Not in my lifetime".

But while the situation is stable in Thailand, the same may not be said for cyclone-hit Myanmar, which will not be able to export its expected 500,000 tonnes of rice this year. According to IE Singapore, Myanmar supplied 1.46 per cent of Singapore's rice imports last year. Said Ms Apiradi: "Singapore mostly consumes Thai rice … So this should not have any bearing on Singapore."

China's rice production is unaffected by the recent earthquake.

Ms Apiradi stressed that the recent price hikes were due to demand and supply factors — and not because of price manipulation or profiteering. For instance, demand from African countries has increased.

Ms Apiradi said that as prices rise, the Thai government's wish is that "farmers are able to benefit from the buoyant prices, local Thai consumers have sufficient rice for consumption and the rice is regularly exported to the world".

One big factor that has reduced supply is global warming, she said. "But we have seen more (price) stability in the past few weeks. We hope it will continue."

The president of the Thai Rice Exporters Association, Mr Chookiat Ophaswongse, noted that Thailand has "sufficient rice to export to all customers". The country produces about 20.5 million tonnes of rice per year but consumes half that amount.

Singapore is Thailand's 16th top importer. Last year, 180,000 tonnes of Singapore's 271,000 tonnes of rice imports come from Thailand.

Thailand assures it will not restrict rice exports
Ian Poh, Business Times 17 May 08;

THAILAND'S Department of Foreign Trade (DFT) yesterday provided assurances that the kingdom will maintain its policy of not restricting rice exports, despite rising rice prices and a shortage of domestic supply.

This is of note to Singapore: the city-state is Thailand's 16th top customer, importing US$108 million worth of rice from that country last year. A substantial 61 per cent or 180,000 out of 271,000 of Singapore's total rice import came from Thailand.

Worldwide demand for Thai rice has exploded after other top exporters India and Vietnam imposed limits on exports to ensure domestic supply, jacking up export and subsequently domestic rice costs in Thailand. Benchmark Thai rice was priced at around S$1,380 a tonne on May 14.

'As of today, Thailand has not adopted any regulation to restrict rice export and has no plans to do so,' said Mrs Apiradi Tantraporn, Director-General, Department of Foreign Trade, Ministry of Commerce of Thailand.

'We are confident that the current rice production and stockpile is adequate to meet not only local consumption needs, but also those of the rest of the world.'

She was speaking at a briefing which included representatives from the Singapore General Rice Importers Association and Thai Rice Exporters Association. DFT also gave an update on its rice production figures: Based on cumulative figures from last year and this year so far, about 20.5 million tonnes have been produced. Thailand's domestic consumption is expected to reach 11 million tons, while the quality of rice available for export is between 9.0 and 9.5 million tons.

The problem lies in rising demand and falling supply. Higher fuel costs and more agricultural land being re-allocated for biofuel production, and bad weather in China and Vietnam have aversely impacted supply levels. Together with increasing affluence and worldwide demand in African countries, for example, the recent move by some countries to restrict rice export has also placed pressure on the global rice supply.

'With the continuous increase of rice prices, the government's intention is to ensure that farmers are able to benefit from the buoyant prices, local Thai consumers have sufficient rice for consumption and the rice is regularly exported to the world.'