THAILAND'S rice exports are expected to increase in the final quarter of the year as a weaker baht makes Thai rice more competitive and boost its global demand.
Foreign Trade Department director-general Keerati Rushchano said the country's rice exports started improving since June with by higher purchases from China, the Philippines, Cameroon, Malaysia, Mozambique and Singapore.
"Thailand's rice exports are expected to continually increase in the last quarter with more than 700,000 tonnes per month," he said based on September export permit documents.
According to a Bangkok Post report, rice exports rose almost 125 per cent to 877,555 tonnes, with the figures from Oct 1 to 18 rising by more than 47 per cent to 380,234 tonnes compared to the same period last year.
In the first eight months of this year, Thailand's rice exports were 3.18 million tonnes with export value of 58.68 billion baht, down 14 per cent from the same period of last year.
"However, we still believe the country is on track to export six million tonnes of rice this year as targeted," he said, based on the weaker baht, declining global Covid-19 cases and the relaxation of lockdown measures worldwide.
Thai Rice Exporters Association honorary president Chookiat Ophaswongse said the weaker baht, which has depreciated 13 per cent against the US dollar this year, has resulted in lower export prices of Thai rice and made it more competitive.
Thailand's 5 per cent broken rice prices were quoted at US$400 per tonne on Friday, lower than Vietnam's US$451 per tonne.
At the beginning of this year, Thai white rice prices were as high as US$520 per tonne.
In recent years, Vietnamese rice has been capturing markets such as Malaysia, the Philippines and China.
But the recent lower prices have created more demand for Thai rice from these countries.
Chookiat said Thai rice production is expected to increase in the 2021/2022 harvest season, with milled rice production estimated at 20 million tonnes, up from 17 million tonnes for the previous season.
Meanwhile, Bloomberg reports that the price of fertilisers is expected to rise for the coming planting season.
The cost of fertiliser in Thailand is on track to double from 2020, with prices now at 16,000 baht (US$480) per tonne compared with an average 10,000 baht last year, according to Pramote Charoensilp, president of the Thai Agriculturist Association.
"It'll be a problem for rice farmers in coming months. Many of them have already harvested last season's rice and are getting ready for planting so they'll need fertiliser.
"A tonne of fertiliser is now more expensive than a tonne of rice," Pramote told Bloomberg.
Thailand buys almost all of its fertilisers from abroad, including from China.
China has also stepped up inspection of its fertiliser exports amid concern over the impact of rising prices on domestic food security.
The country is a key supplier of urea and phosphate to the global market, including to India, Pakistan and Southeast Asian countries.
While the recent floods spared most of Thailand's rice fields, fertiliser costs will become a big issue for farmers already struggling with low prices, Pramote said.
According to the report, fertiliser costs are also impacting other Asian countries with Vietnam's plant production department encouraging rice farmers to cut fertiliser use by as much as half.
Meanwhile in the Philippines, Fertiliser and Pesticide Authority administrator Wilfredo Roldan expects local rice and corn prices to rise as fertiliser accounts for as much as 70 per cent of the production cost.