Thailand is situated in the southeastern part of the Asian continent. It is making remarkable progress in economic & social development. It is aimed at reaching its higher-income status by 2032.
Success in the economy of Thailand is attributed to it being the top exporter of commodity crops. It accounts for a quarter of global trade. Much of its agricultural land is located in the Northeast & Central Thailand. Even central Thailand is referred to as the “breadbasket” or the “rice bowl”.
The well-developed infrastructure & the naturally-fertile land combined to make a strong foundation for larger agriculture companies & small-scale farmers. The country is ranking on top of the world leaders in the export of rice, sugar, rubber, & seafood. So far, the Thai government is after reducing production costs, promoting high-quality agricultural products, & increasing competitiveness in the agricultural sector.
High-quality rice is in demand in many countries. The export markets of Thailand are the United States, the ASEAN region, the Middle East, Africa, & China. And the export categories include Jasmine rice, parboiled rice, & white rice. The cultivation of this high-quality rice is due to the involvement of 4-million Thai households in rice cultivation.
The rice farmers would often sell their rice to a local mill or through the help of middlemen like the paddy rice center market, agricultural cooperatives, & paddy rice collectors. They are the ones responsible for distributing paddy rice to the rice mills. Now the intermediate segment as the rice mills utilizes the unprocessed rice as an input. This way, milled & finished rice is produced.
Exported 8.7-Metric Tonnes of Rice
In 2014, Thailand exported about 8.7-million tonnes of rice. This figure put Thailand rice exports at two-hundred thousand tonnes more than the last one projected. The country is expected to capture much of the expansion in world demand. The majority of the rice exporters are forecasted to be exporting more.
In the FAO report, a 5-percent increase is forecasted in the global demand for rice just in 2014. This is truly coming from mainland China. The country was at that time expected to import 3.3-million tons. Indonesia & the Philippines also imported 1.2-million & 1.1-million tons of rice.
The global rice production in that same year reached 751 million tonnes. This is equal to 0.8-percent which is more than the current estimate for 2013.
Exported 5-Million Tonnes of Rice
Thailand also successfully shipped about 5-million tonnes of rice abroad in the first quarter of 2016. This is estimated to be a yearly increase of 12.1 percent. This is also why the country is the world’s biggest rice exporter.
The Thai Rice Exporters Association President also expected that Thailand will remain in its top position. This is also until the year-end season. The total export is 9.5-million tonnes of rice.
Its rice export is somehow higher in volume than in Pakistan, Vietnam, & India. These countries exported about 4.7 million tones, 2.66-million tonnes, 2.44 million tonnes. Some concerns were somehow raised including fierce rivalry from the competitors, reduction in the purchasing volume from the buyers, & the increasing baht affecting the global market position.
Support From the Government Is As Needed
Support coming from the government is as needed for farmers. This way, the possibilities of declining rice prices are avoided. The government of Thai is so far offering state subsidies. This is also since Thai rice exporter is likely to be facing strong competition from Indian rice exporters & Vietnamese rice exporters.
Now, you have learned that Thailand is still regaining its number one ranking as a rice exporter!
