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BP: Exports surge ahead in volume
- Subject: BP: Exports surge ahead in volume
- From: suriya@xxxxxxxxxxxx
- Date: Tue, 07 Apr 1998 12:39:00
April 7, 1998
RICE
Exports surge
ahead in volume
and value
Concerns raised over impact of strong
baht
Woranuj Maneerungsee
Rice exports in the first quarter of the year rose sharply in terms
of both volume and value, according to Pracha Charutrakulchai,
director-general of Foreign Trade Department.
He said the volume of exports surged by 73.5% to 1.84 million
tons, while the value jumped 37.1% to US$576 million
compared to the same period last year.
In baht terms, the value increased dramatically to 26.9 billion
baht, 147.6% more than the corresponding period in 1997.
Mr Pracha said although rice exports for the first three months
showed good earnings, the situation may change due to the
strengthening of the baht.
In March, for example, when the baht improved against the US
dollar, the country shipped 590,000 tons of rice generating 8.7
billion baht while in February when the baht was weaker,
Thailand shipped 560,000 tons earning 8.8 billion.
"Rice exports will clearly show a reduction in the second quarter
because several buyers in Asian countries, the largest Thai rice
market, have faced liquidity problems," said Mr Pracha.
Some major buyers including the Philippines and Indonesia have
delayed placing orders. Indonesia has even asked for a one
million ton rice donation from Japan and the US to replace
imports.
Amid the negative rice production situation, the director said
Thai exporters may receive positive news if the volume of rice
exports from rival countries like Pakistan and India fell and if
Vietnam raised its prices.
It is estimated that Thailand will export between 400,000 and
500,000 tons a month during the second quarter. That would
help absorb the 3.43 million tons of paddy output from the
second crop which will be released to the market between April
to May.
Somboon Phataichan, manager of Rice Exporters Association
added that although the volatile baht affected rice exporters, the
impact would not be too great as orders are normally delivered
almost immediately after pricing agreements are made. The
speed of delivery reduces the time that the baht can strengthen or
weaken.
Mr Somboon is confident the country's exports will meet its
target of 5.55 million tons this year. World rice trade for 1998 is
expected to increase higher than earlier prediction of 19.28
million tons to 22.75 million tons.
The main rice importing countries are the Philippines, China, and
Indonesia which faced the severe drought from the "El Nino"
phenomenon.
In a related development, Mr Somboon said the price of local
paddy rice has declined as a result of the stronger baht.
Fragrant paddy has fallen to around 8,500 baht a ton from
10,000-12,000 baht in December-January. Also, white paddy
rice dropped to 6,000-6,400 baht a ton from 8,000-8,500 baht.
The fall of paddy rice price has also pushed down local prices.
According to Internal Trade Department, price of a five-kilo bag
of rice has fallen by 13.4%.
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Last Modified: Tue, Apr 7, 1998