Thailand: Rice prices predicted to rise in Q2

Thai rice exporters expect global prices will increase in the second quarter because of the impact of the El Niño phenomenon and India's rice export restrictions, reported the Bangkok Post.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said rice exports tallied 2.5 million tonnes in Q1 as exporters are committed to delivering a large quantity, in particular white rice, to major Southeast Asian markets such as Indonesia, the Philippines and Malaysia, as well as Africa and the Middle East.

Key importers of white and fragrant rice in the U.S. and Asia are expected to post strong demand for white rice and fragrant rice to compensate for reduced domestic supply amid record-high global prices, he said.

Thailand's rice supply remains sufficient and its rice prices are competitive due to the weakening bath agaisnt US dollar.

In Q2, export volume may decrease slightly because of increased competition, as Vietnam's harvest season starts in March, he said.

He also noted Thailand’s rice exports this year are likely to reach 8 million tonnes with an estimated value of THB180 billion ($4.92 billion), surpassing the previous projection of 7.5 million tonnes and THB150 billion.