Can Thailand save its rice bowl

[reader]

From South China Morning Post

Thailand’s famous jasmine rice claimed yet another top prize on the world stage this month, marking the sixth such honour the World Rice Conference has bestowed on the fluffy, fragrant and full-bodied grain since 2009.

The “Khao Dawk Mali 105” – a code name for the most renowned Thai jasmine rice variety – defeated rivals from Cambodia, China, the United States and Vietnam with “its combination of aroma, texture, and flavour”, said the judging panel at the annual forum for rice suppliers and policymakers.

Thai growers attributed the win to an early onset of cool winds that swept’s northeast earlier this year, making the grains “particularly shiny, strong and fragrant”, said Charoen Laothamatas, president of the Thai Rice Exporters Association.

But the recognition caps a difficult year for Thailand, which is set to see the lowest rice exports in two decades due to falling global demand caused by the coronavirus pandemic, the baht’s strength and export competition from the likes of India, Vietnam and China.

In 2015, India dethroned Thailand as the world’s top rice exporter, a position it had held for 35 years. India is set to export about 14 million tonnes of rice this year, up from 9.9 million tonnes last year.

This year, Thailand fell to No. 3, with Vietnam snatching the second spot. From January to October, Thailand exported 4.4 million tonnes of rice, down 31 per cent from a year before. In comparison, Vietnam shipped 5.3 million tonnes of rice in the same period, down 8 per cent from last year.

Thailand’s rice exports to China, one of its biggest markets, also fell by 39 per cent this year.

Thai white rice this year also lost out to cheaper grades offered by Vietnam in key Asian markets like the Philippines. China was also beating Thailand in key African markets with cheaper prices.

However, sales of Thai premium-grade jasmine rice rose by 63 per cent this year, benefiting from panic buying in wealthier markets like Singapore, Hong Kong, the US and Canada, Reuters reported in July.

Thailand has been mulling ways to avert its rice export crisis, this year releasing a five-year plan to regain world dominance in the rice trade.

The strategy includes accelerated support for the development of 12 new rice varieties, such as hard- and soft-textured varieties of white rice, several more hom mali varieties, and two varieties of high-nutrition rice.

In a November report, Bloomberg said the RD79, a variety of soft-grain rice, could be Thailand’s new hope down the line, with its supple texture and long grain similar to jasmine rice, minus the fragrant scent. It could be marketed at a cheaper price than the hom mali, while being more resistant against disease and drought.

 

[PeterRS]

12 hours ago, reader said:

From South China Morning Post

Thailand’s famous jasmine rice claimed yet another top prize on the world stage this month, marking the sixth such honour the World Rice Conference has bestowed on the fluffy, fragrant and full-bodied grain since 2009.

The “Khao Dawk Mali 105” – a code name for the most renowned Thai jasmine rice variety – defeated rivals from Cambodia, China, the United States and Vietnam with “its combination of aroma, texture, and flavour”, said the judging panel at the annual forum for rice suppliers and policymakers.

But the recognition caps a difficult year for Thailand, which is set to see the lowest rice exports in two decades due to falling global demand caused by the coronavirus pandemic, the baht’s strength and export competition from the likes of India, Vietnam and China.

In 2015, India dethroned Thailand as the world’s top rice exporter, a position it had held for 35 years. India is set to export about 14 million tonnes of rice this year, up from 9.9 million tonnes last year.

This year, Thailand fell to No. 3, with Vietnam snatching the second spot. From January to October, Thailand exported 4.4 million tonnes of rice, down 31 per cent from a year before. In comparison, Vietnam shipped 5.3 million tonnes of rice in the same period, down 8 per cent from last year.

Lest we forget, Thai rice exports suffered massively thanks to Thaksin sisters rice pledging scheme that set the price of rice bought by the government far too high. After decades, that allowed India, Vietnam and others to increase their shares of the international market and dethrone Thailand from the No. 1 spot. An official Inquiry found it also lost the Thai government billions of $$.

[GWMinUS]

On this same topic I want to ask if there is a Brand of Thai Jasmine Rice I should look for at the US Supermarkets; Whole Foods or Sprouts?? We have been buying Thai Jasmine Rice and I honestly do not find it very special. Of course we are Americans and do not eat rice 2 to 3 times every day...

[Guest]

11 hours ago, PeterRS said:

Lest we forget, Thai rice exports suffered massively thanks to Thaksin sisters rice pledging scheme that set the price of rice bought by the government far too high. After decades, that allowed India, Vietnam and others to increase their shares of the international market and dethrone Thailand from the No. 1 spot. An official Inquiry found it also lost the Thai government billions of $$.

Governments should generally not interfere in such matters, as politicians lack the competency.  They are surprisingly poor at thinking through the unintended consequences. 

I'm not sure how competitive Thai rice growing is.    In Cambodia, we see large fields with the mechanical rice harvesters having a nice unimpeded run.   I've not noticed the same scale in Thailand.

 

6 hours ago, GWMinUS said:

On this same topic I want to ask if there is a Brand of Thai Jasmine Rice I should look for at the US Supermarkets; Whole Foods or Sprouts?? We have been buying Thai Jasmine Rice and I honestly do not find it very special. Of course we are Americans and do not eat rice 2 to 3 times every day...

I agree it's not special.    However, should we expect it to taste special ?     If it was that good, everyone would be growing it.   

[PeterRS]

1 hour ago, z909 said:

Governments should generally not interfere in such matters, as politicians lack the competency.  They are surprisingly poor at thinking through the unintended consequences. 

I'm not sure how competitive Thai rice growing is.    In Cambodia, we see large fields with the mechanical rice harvesters having a nice unimpeded run.   I've not noticed the same scale in Thailand.

I wholly agree about government interference. But the rice pledging scheme was a naked election gimmick to ensure the re-election of Thaksin's party,. A second gimmick also backfired in spectacular fashion - a tablet for every schoolchild,. The tablet contract was given to a Chinese company. It was unable to meet its deadlines and there was a big delay. When the first tablets eventually arrived and some actually worked, it was discovered that the kids spent all their time playing games on them. The Chinese contract was cancelled and the whole scheme bit the dust.

There was a third gimmick at that election. 1.6 million new car buyers were given a special subsidy. As there was no requirement to trash older cars and no plan to build more roads, traffic gridlock naturally got a lot worse particularly in Bangkok.

[GWMinUS]

Well, here in the good ol' USA the Government supports, or subsidizes, many farm crops.

Just look at Pres Trump "buying" the Farm Votes in the Mid-west with his Tax Breaks during his Import Fight with China.

And here in New Mexico, the State government provide supports for the chili and pecan growers.

That is Life!!