Thailand is expected to export only 9.5 million tonnes of rice in 2015, down from an earlier projection of 10 million as drought has taken a toll on rice production.
Charoen Laothamatas, president of the Thai Rice Exporters Association, said of the target comprised 4.8 million tonnes of white rice, 2.2 million tonnes each of Hom Mali fragrant rice and parboiled rice, 200,000 tonnes of glutinous rice and 100,000 tonnes of Pathum Thani fragrant rice.
The 5% cut was due to smaller cultivation areas, resulting in lower output of the main and second rice crops. The cultivation period may also be postponed due to the drought which is likely to extend for 1-2 years.
Mr Charoen said the sluggish world economy also affected Thai rice orders.
However, the association has suggested the government push rice exports in the second half of the year by releasing the government’s stock at levels that match market demand. Authorities should also speed up government-to-government rice sales to China since two million tonnes have yet to be fulfilled under the memorandum of understanding.
The exporters also urged the government to stabilise and monitor exchange rates at appropriate levels.
As of June 30, the government had around 9.15 million tonnes of edible rice — 1.82 million of grade A and B, and 7.33 million of grade A and B mixed with grade C.