Thailand hopes to sell all rice stockpile in 2017’s first-half
Bangkok (VNA) – Thailand’s Ministry of Commerce said that the country plans
to sell its entire rice stockpile of 8.01 million tonnes in the first half of
2017, starting with the auction of 2.87 million tonnes of high-quality rice on
February 16.
The remaining rice,
which is of lower quality, will be sold to food and industrial processors
between March and May.
According to Director General
of the Ministry of Commerce’s Department of Foreign Trade, Duangporn Rodphaya,
the auction on February 16 is expected to reduce pressure on the rice price on
the world market, while easing the storage costs for Thailand.
It is forecast
that Thailand’s rice exporters will have a difficult year in 2017 with the
strong increase of rice supply while the demand of the market is lower than
last year.
According to a
report released by the Thai Rice Exporters
Association on February 4, the country will export around 9.5 million tonnes of
rice at an estimated value of 150 billion THB (4.3 billion USD) in 2017. Last
year, Thailand shipped abroad 9.88 million tonnes for 154 billion THB.
Competition from other rice
export countries, the low rice price and the devaluation of the baht are cited
as reasons behind the reduction in Thailand’s rice export value.
However, Thailand is expected
to keep its position as the world’s second largest rice exporter after India.-VNA