The Thai Rice Exporters Association (TREA) expects exports to recover in the second half of this year, boosted by higher purchases from China, Hong Kong and Singapore during the peak season.
But it still maintains its forecast for rice exports this year at 6.5 million tonnes worth US$4.65 billion, lower than the 8.5 million tonnes worth $5.7 billion set by the Commerce Ministry.
Last year, rice shipments totalled 6.95 million tonnes, down by 30% from 2011, making the country slip to third place among rice-exporting nations.
TREA figures show Thailand shipped 2.9 million tonnes in the first half of this year, a year-on-year drop of 8.4%.
Revenue was 62 billion baht, down by 7.8%, while it fell 3.4% in US-dollar terms to $2.1 billion.
White rice made up 1.22 million tonnes (up by 8.22%), broken rice 74,854 tonnes (up by 53.3%), Hom Mali rice 719,857 tonnes (up 16.5%), parboiled rice 597,597 tonnes (down by 44.2%), glutinous rice 89,863 tonnes (up by 22.3%) and Pathum Thani fragrant rice 26,059 tonnes (down by 40.9%).
Chookiat Ophaswongse, honorary president of the TREA, yesterday said first-half rice shipments were subject to a spate of trouble, particularly fierce competition among rice exporters around the world and the slower global economy.
"It's fortunate that Iraq bought 418,490 tonnes of Thai rice, a surge of 113%, in the first half, with the purchase from Benin skyrocketing by 257% to 338,079 tonnes," he said.
Purchases by the US and Japan also rose by 14% and 37% to 189,507 tonnes and 172,721 tonnes, respectively.
Mr Chookiat said Thai rice exporters will fare much better in the second half thanks to government efforts in releasing rice from stocks at close to market prices.
More importantly, the second half is considered the peak season for rice purchases, he added.
Nonetheless, Mr Chookiat said negative factors include the higher price of Thai rice compared with rice from rivals India and Vietnam and plentiful supplies of other cereals such as wheat and corn.
Mr Chookiat said rice producers such as Myanmar and Cambodia have also stepped up their exports and shifted their focus to high-quality segments such as fragrant rice.