Thailand expects more rice exports as virus outbreak troubles competitors

By Patpicha Tanakasempipat
BANGKOK, April 1 (Reuters) - Thai rice exporters expect to
increase sales as the spread of coronavirus sparks global food
security concerns and major competitors face export bans or go
into lockdown to battle the outbreak.
Thailand, the world's second-largest rice exporter after
India, started the year bracing for its lowest export volumes in
more than seven years, after a strong baht and drought kept its
2019 prices uncompetitive against main rival Vietnam.
However, it now sees a better outlook after the virus
outbreak sent India into a three-week lockdown and Vietnam, the
world's third-largest exporter, banned new rice export contracts
last week to ensure domestic supply, an industry body said.
"Thai rice exports should improve in the second quarter of
the year, as our competitors limit exports or encounter
logistics problems," Chookiat Ophaswongse, honorary president of
the Thai Rice Exporters Association, told Reuters.
"There is no sign Thailand will limit rice exports yet," he
said, adding that no such measure was discussed during an
exporters' meeting with the country's Ministry of Commerce last
week.
Thailand, which usually produces just over 20 million tonnes
of rice each year, consumes about 10 million tonnes domestically
and exports the rest.
This year's output, hurt by an ongoing drought since
November, would be enough to ensure no domestic shortage, while
leaving a smaller surplus of around 8 million tonnes for
exports, Chookiat said.
The lower Thai supply was in contrast with India's
record-breaking rice output this year and Vietnam's ample
winter-spring crops.
Benchmark Thai 5% white rice RI-THBKN5-P1 climbed this
month to the highest levels since August 2013.
It was quoted last week at $481.5 per tonne, about 19%
higher than a year earlier, and about $70-$120 higher than a
similar Vietnamese grade RI-VNBKN5-P1 and a benchmark Indian
parboiled variety RI-INBKN5-P1 .
In mid-January, the rice exporters body forecast a 7.5
million tonnes export target for 2020 due to uncompetitive
prices, which Chookiat at the time described as "optimistic".

But with the competitors' restrictions and limitations, that
goal seemed more achievable as the coronavirus prompted
consumers to hoard food and countries to replenish stocks, he
said.
Since early March, Thai rice has been sought by supermarkets
overseas, pushing up overall sales for the month by about 16%
from February, said Chookiat.
Major importer Philippines, which has bought more Vietnamese
than Thai rice in recent years, said on Tuesday it was seeking
to import 300,000 tonnes.
"At the beginning of the year, the Thai rice export outlook
was so gloomy. But with the coronavirus outbreak, it's a
complete 180," Chookiat said.
"It should get better for Thai rice going forward."