Rice bags offered for sale at a supermarket in Bangkok, Thailand (Photo: VNA) Bangkok (VNA) - Thailand's rice export is facing an unpromising outlook in the second half of 2020 amid sluggish global demand caused by the coronavirus crisis.
Local media cited Charoen Laothammatas, President of the Thai Rice Exporters Association (TREA), as saying that overall Thai rice export activity is relatively quiet in July after the pandemic resulted in the collapse of Phoenix Commodities, one of the world's biggest commodity traders.
Phoenix Commodities' collapse affects almost all rice exporters in Thailand, Charoen said, noting that it was a trading partner of many Thai rice exporters, particularly those who ship rice to Africa.
This UAE-based company, trading in grains, coal, metals and other commodities, is estimated to owe 1 billion THB (31.7 million USD) to Thai exporters who sell rice on credit to it.
According to Charoen, the appreciation of the Thai baht earlier this month and drastic foreign exchange swings have also led almost all exporters to baulk at rice shipments.
In the first five months, Thailand exported 2.57 million tonnes of rice worth 54.16 billion THB, down 31.9 percent and 13.2 percent from the same period last year, respectively.
Its biggest rice importers during the period were the US, South Africa, Angola, China, and Japan.
The TREA set a full-year rice export target of 7.5 million tonnes but is scheduled to adjust the target on July 22.
Thailand shipped 7.58 million tonnes of rice worth 131 billion THB in 2019, down 32 percent in volume and 25 percent in value year on year./.
VNA
