Developing Countries Will Lead Global Rice Import Growth in 2013-22, Says USDA Rice growers positive California MG prices are UP Russia MG Harvest coming to end Egypt open rice exports Vietnam’s rice export in tough competition with India Thai rice exports in May Rise Above Target This Year Viet-Nam Rice exports likely to fall this year
Australia Medium Grain Rice #1 $ N/A    Egypt 101 #2 $760    Egypt 178 #2 Rice $730    EU Prices Baldo €660    EU Prices LG-A Ariete 5% €550    EU Prices MG Lotto 5% €500    EU Prices RG Balilla 5% €500    Russia Rapan $ 700    USA Jupiter Paddy $375    USA Calrose #1 Paddy $480    USA Jupiter Rice $630    USA Calrose #1 $830   

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Thailand - Annul Rice Market Report
USDA, March 23, 2004
MY 2004/05 paddy production is forecast to increase slightly to 27.1 million metric tons (17.9 million metric tons milled equivalent), mainly in response to the anticipated increase in average yield, given normal weather conditions. Farmers are expected to utilize more fertilizer and to take good care of their farms, due to the continued attractive prices, which are averaging at around 5,080 baht/ton for 5% grade paddy in CY 2003, as compared to 4,840 baht/ton in the previous year. However, the likelihood of dry weather conditions is reportedly a major concern among traders, and will be closely monitored. In MY 2003/04, paddy production has been revised downward slightly to 26.8 million metric tons (17.7 million metric tons milled equivalent), mainly due to poor rainfall, but remained higher than the previous year’s production of 26.1 million metric tons. The delay and poor distribution of rain resulted in a drop in the average yield of the main paddy crop, particularly in the Northeastern region, a major area for fragrant paddy. Fragrant paddy production is forecast to decline slightly to 5.0 million metric tons, as compared to approximately 5.3 million metric tons the previous year. However, the conversion rate of head rice of main paddy crop is reportedly excellent at around 45 percent, as compare to around 38 percent in the previous year, due to the dryness during harvest period. As a result, the supply of broken rice is expected to be tight, leading to an anticipated surge in prices. Also, the relatively low level of water in major dams has limited the expansion in planted areas of second crop, despite current attractive farm prices.

Rice remains the dominant food among the Thai people. According to the National Statistic Office, average household expenditures on rice are accounted for about 99 percent on total rice and flour expenditures. Annual per capita consumption of rice remains at about 110 kilograms.

MY 2004/05 rice exports will likely slow down to 7.8 million metric tons, in anticipation of the return of the major competitors from their tight supply situations in the previous year. In MY 2003/04 rice exports are conservatively forecast to increase to the all time high of 8.0 million metric tons, reaching the official target, due to an anticipated tight supply situation among the major competitors, in particular Vietnam, and also the major producing countries like China. Trade sources reported that Thai rice should gain market share in Africa and Asia at the expense of Vietnamese rice. Export demand is reportedly expected to be aggressive during the first half of the year. Also, South American countries, including Brazil and Chile continued to import Thai rice, due to cheaper prices compared to U.S. rice. However, exports to South American countries are limited by current freight costs. The tight global supply situation has put more upward pressure on export prices. Average export prices of 100% B grade white rice during the first two months increased by 7.3 percent to around US$ 220/ton, FOB Bangkok. Trade sources expected that prices had bottomed out and are now on an upward trend for the rest of the year.

MY 2002/03 rice exports increase by 4.9 percent to a record 7.6 million metric tons, of which 2.3 million metric tons are fragrant rice, which recovered from the previous year’s exports of 1.7 million metric tons.

As for rice imports, demand for imported rice increased noticeably to 7,346 metric tons in CY 2003, as compared to only 368 metric tons in the previous year. Rice imports from China accounted for the bulk of the increase. Official sources reported that about 75 percent of imported rice was short-grain rice, and the rest was Basmati rice from India and Pakistan, and glutinous rice from Laos. The imported short grain rice from China is reportedly of superior quality, which is normally sold in the premium market segment as table rice for the Japanese and Korean markets in Thailand, as compared to the locally produced short grain rice, which is used mainly as a raw material in specific flour industries (Japanese rice flour), and produced mostly under contract. On import policies, the Ministry of Commerce has announced the annual import quota for rice at 249,757 metric tons for CY 2004, following the WTO agreement on market access. In CY 2003, rice imports totaled 7,346 metric tons, up significantly from 368 metric tons in the previous year. Most imports are short grain rice, which is from China (6,713 metric tons).

The government policy remains focused on the paddy mortgage scheme. Despite more flexibility in the program this year, fewer farmers participated, as market prices were higher than the mortgage program intervention prices. The 2003/04 mortgage scheme for main paddy, extending from November 1, 2003 to March 15, 2004, planned to buy 9.0 million metric tons of paddy – 5.0 million metric tons of fragrant paddy, 3.0 million metric tons of non-fragrant paddy and 1 million metric tons of glutinous paddy. As of Mar 14, 2004, the program had bought 2.4 million metric tons of main crop paddy which included 0.2 million metric tons of fragrant paddy, 2.1 million metric tons of non-fragrant paddy, and 0.05 million metric tons of glutinous paddy. In addition, the intervention prices for the 2004 second crop paddy mortgage scheme has been set higher by about US$ 12/ton from the previous year’s level, as follows: US$ 129/ton for 100% grade paddy; US$ 127/ton for 5% grade; US$ 124/ton for 10% grade; US$ 122/ton for 15% grade; and US$ 116/ton for 25% grade (exchange rate: 39.50 Baht/US$ 1.00).
MGR Archive 24.3.2004
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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