Thailand is stepping up efforts to increase its Thai rice exports in bulk to the Philippines as the Southeast Asian nation has emerged as a major importer of the staple grain.
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Rice Exports to Philippines
The US Department of Agriculture (USDA) published a report predicting that the Philippines will become the largest rice importer by 2024. It is anticipated that the Philippines will import 4.1 million tonnes of rice this year, up from 3.2 million tonnes the year before.
Vietnam and Thailand, the second and third-largest rice exporters in the world, respectively, are engaged in a competitive race as a result of the increase in demand. A senior representative of the Thai Rice Exporters Association stated, "The Philippines is a crucial market for us." "We see significant growth potential in the coming years."
Vietnam has long been the Philippines' primary rice supplier, accounting for approximately 80% of annual imports. Thailand, on the other hand, is looking to capitalize on the Philippines' increased demand and is to supply at least 130,000 tonnes of rice through the rest of 2024. "We are committed to strengthening our partnership with the Philippines to meet their increasing rice demand," a Vietnamese Agriculture Ministry official stated. "We believe we can provide a competitive product to meet the demands of the Philippine market."
Price competitiveness and rice yields are important factors in the competition. While Thailand has made significant progress in increasing exports, Vietnam's higher yields and ability to offer lower prices present a challenge.
Thailand has made significant progress, shipping 300,000 tonnes of rice to the Philippines in the first six months of 2024, representing a 388% increase over the same period last year. This surge is due to supply shortages in the Philippines and a weaker Thai baht, which allows Thai exporters to offer competitive prices.
Thailand's Efforts to Boost Rice Exports to Philippines
According to the Commerce Ministry, Thailand anticipates exporting 8.2 million tonnes of rice overall this year, a 6.5% drop from 2023. The Thai Rice Exporters Association's president, Charoen Laothamatas, stated that price is an important consideration in the Philippine market. We need to stay competitive in order to maintain our market share.
Additionally, he urged the nation to acquire more tools because the second half of the year is predicted to see an increase in competition. He pointed out that Thai exporters might face difficulties due to increased supply from Pakistan and Vietnam's higher rice yields.
India's rice production, which is predicted to be high this year, is being closely watched by the global rice industry. This might lift India's export ban on white rice, which would allow more grains to reach the world market and perhaps start a price war. The decision made by the Philippines in June to lower import duties on rice to 15% is another factor driving up demand for imported grains. The nation has been battling food inflation and has made an effort to increase domestic production, but imports are still necessary to meet demand.
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