Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Agriculture  >>   India, Vietnam overtake Thailand as No.1 rice exporter
NEWS UPDATES Asean Affairs   7 January 2013 

India, Vietnam overtake Thailand as No.1 rice exporter


Thailand has lost its crown as the world's top rice exporter for the first time in 30 years. Hampered by an expensive government-run price support scheme, it shipped under seven million tonnes of the grain last year, trailing behind India and Vietnam.

In contrast, India exported 10 million tonnes and Vietnam 7.5 million tonnes, according to figures from the United States Department of Agriculture.

The dethroning is a blow to the country that prides itself as the food basket of Asia, but it is something local exporters had warned of for months as the government-run rice pledging scheme pummelled export figures.

Under the 15-month-old programme, the government guarantees farmers up to 15,000 baht (US$49) per tonne for white rice, more than 50 per cent higher than world prices.

While it has raised the incomes of farmers, it has also turned the government into the main buyer of rice, and resulted in a giant stockpile that cannot find takers on the world market.

According to a World Bank report released last month, the Thai government is sitting on a stock of more than 20 million tonnes of rice, twice the amount the country exported in 2011.

The mountain of rice created storage headaches last year and the government even briefly considered storing it in a cargo building at Don Muang Airport.

The income support programme was a key campaign promise of the ruling Puea Thai party in 2011, and the government has shown no sign of ditching it.

Although government price guarantees for rice are not new, the Puea Thai government differed by not putting a cap on the amount of rice it would buy.
Exporters have been deeply sceptical of claims by the government of deals to sell rice to other governments.

Rice exporter Vichai Sriprasert told The Straits Times yesterday: "Sooner or later, this plan has got to be scrapped. It's physically impossible to sustain."

The programme benefited just 1.3 million out of 3.6 million of the rice farming households in the harvest year that ended last September.

According to the World Bank report, the scheme cost the government 376 billion baht, or around 3.4 per cent of the country's gross domestic product, in the same period.

In the coming harvest season, assuming none of the rice is sold, the cost of the programme is expected to hit 440 billion baht.

Beyond financial cost, the losses from the programme may be felt in the longer term, noted the World Bank report. The high padi prices have made farmers increase the number of crops each year by producing lower quality rice.

Thailand's rice yield is already one of the lowest among rice growers in the world, and "continued subsidies to rice production may be slowing a needed transformation of Thai agriculture", it said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    7 January 2013  
Subsribe Now !
• India, Vietnam overtake Thailand as No.1 rice exporter   Subcribe: Asean Affairs Global Magazine
• Call for total gun ban up in the Philippines Asean Affairs Premium
• 13 killed in shootout with big-time drugs syndicate in Philippines
• Japan Channel TV to be launched for Asean countries
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Record trillion-ringgit bond, sukuk market in Malaysia
Asean Analysis              3 January  2013     Advertise Your Brand
• Asean Analysis- January 3, 2013  
• Asean Weekly-  December 21, 2012 Sponsor Our Events

Asean Stock Watch      7 January  2013    

• Asean Stock Watch- January 7, 2013

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand