Thailand's rice shipments are on course to hit 11 million tonnes this year thanks to price competitiveness and the government's accelerated attempt to dispose of stocks.
Data from the US Department of Agriculture and the Foreign Trade Department show Thailand as the world's No.1 rice exporter in 2014 (orange) while next year's crop looks significantly less optimistic because of junta-ordered cutbacks.
It is the biggest export sale ever, with the previous record set in 2004, at 10.14 million tonnes. It is also a surprise to the industry, which in January expected to sell about 8.5 million tonnes in 2014.
Duangporn Rodphaya, director-general of the Foreign Trade Department, said Tuesday that the Commerce Ministry was now able to sell rice stocks on a continued basis, notably through government-to-government (G-to-G) deals for big lots.
The ministry has sold one million tonnes of rice to China, 170,000 tonnes to Indonesia and 300,000 tonnes to the Philippines in the latest deal.
Demand is also strong from potential buyers including Iran, which plans to send representatives to observe rice quality in state stocks in November.
"Rice exports are still promising and prices are more competitive," said Ms Duangporn, who insisted the government would not opt to accelerate rice sales by dumping.
For the first eight months of this year, around 7.3 million tonnes of rice were shipped overseas, with exports likely to average a million tonnes a month for the rest of the year.
Those shipments exclude rice sold through G-to-G contracts.
"We are now feeling upbeat about selling up to 11 million tonnes by year-end against 8.5 million tonnes in the earlier target," Ms Duangporn said.
In a related development, the Commerce Ministry plans to call a third auction for state rice stocks this month for about 100,000 tonnes.
The ministry sold a combined 140,000 tonnes of rice in the first two auctions, raising 1.5 billion baht.
Ms Duangporn said the ministry would also allow rice exporters who secure purchase orders to offer a tender to directly buy state rice stocks from the authorities, which will help dispose of stocks.
The National Council for Peace and Order in July vowed to sell an average of 500,000 tonnes a month from state stocks and dispose of the surplus of 18 million tonnes within three years through general auctions, G-to-G deals, direct sales and the Agricultural Futures Exchange of Thailand.