Tough year ahead for Thai Hom Mali

Business > Economics

Vietnam, Cambodia to be formidable rivals

Published: 3/01/2012 at 02:02 AM
Newspaper section: Business

Thai Hom Mali rice exports will face tougher competition from Vietnam and Cambodia in 2012 as the rice from both countries has gained higher acceptance among foreign consumers, according to an industry group.

Thai major markets for Hom Mali rice are Hong Kong and Singapore, which generally buy newly harvested rice during the Chinese New year, but Vietnamese fragrant rice will be out in the market in March, said Chookiat Ophaswongse, honorary president of the Thai Exporters Association (TREA).

Vietnam set the target of exporting 800,000 to 1 million tonnes of fragrant rice in 2011, up from 500,000 tonnes in 2010. The amount is much higher than five-figure volumes which Vietnam shipped in the past 3-4 years. Hanoi also encouraged its rice farmers to cultivate more fragrant rice.

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About the author

: Writer: Phusadee Arunmas; Position: Business Reporter

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koolbreez
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Discussion 1 : 03/01/2012 at 10:17 AM1
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Let see here, the risk factor is India's cheaper rice, and not the rice mortgage scheme (which artificially sets the Thai rice at a much higher price)...hmmm. It would seem the biggest barrier that will cause a loss to Thai rice exports is directly related to the rice mortgage scheme by setting an unrealistic price for Thai rice.

This opens the door for every rice producing country to take export sales away from Thailand by simply selling at market prices. Thailand can not sell rice at market set prices because they agreed to buy the farmer's rice at way above market price. This is why the scheme did not work in the past, and how Vietnam then gained such a strong foothold in rice exports.

The thing not to be overlooked though, and what the rice mortgage scheme designers are probably counting on is selling the rice at retail price to all the flood relief programs in the years to come,because nothing will be done about flood water management either.
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Tough year ahead for Thai Hom Mali | Bangkok Post: business