Rice

 

 

Introduction

 

  • Rice farming is ingrained into the Thai society and economy.
  • For over a century, rice has been the largest source of foreign exchange for the country, which in 1960 accounted for 80% of the country's total export.
  • Rice is the staple food of the country.
  • In the 1997/98 season, rice was grown on 10.14 million ha. (64, million rais) of land, average yield was 2.17 tons/ha (381 kg/rai).  Total production was 23.58 million tons, with a farm value of Bt 164 billion.
  • Recent production history:
      • 1996/97       20.7 million tons
      • 1997/98       23.5 million tons
      • 1998/99       22.8 million tons
      • 1999/2000   23.3 million tons (USDA est.)
  • In 1998, rice exports amounted to Bt 87 billion.
  • Rice in Thailand is classified by season into two types - major and second rice.
      • Major rice –   (1998) 57 million Rai, 18.8 million ton
      • Second  -      (1998) 7.2 million ton, 4.8 million ton
  • Crops are usually high quality, with top grade 100% white non-glutinous rice accounting for more than one third of the export volume.
  • Low-grade rice is under competition from low cost producers in the region. 

Production areas

  • The northeast is the major producing area for major rice. 
  • The central plain is the main area for second rice cultivation.  The percentage share of its total planted area and production is about 70%.  It is expected that this area will decrease due to water shortages.
  • Main provinces
  • Second rice (>200,000ton):  Nakhon Sawan, Kamphaeng Phet, Phichit, Phitsanulok, Chai Nat, Nakhon Pathom, Suphan Buri Chachoengsao
  • Major Rice (>400,000 ton):  Sakon Nakhon,  Udon Thani,  Ubon Ratchathani, Khon Kaen, Maha Sarakham, Roi Et, Buri Ram, Si Sa Ket, Surin, Nakhon Ratchasima, Nakhon Sawan, Phetchabun, Kamphaeng Phet, Phichit, Phitsanulok, Chiang Rai, Chai Nat, Suphan Buri. 

Domestic demand

  • Domestic rice consumption (direct, seed and other products) is about 60-70% of the total production.  Recent figures are:
      • 1995/96        8.4 million tons
      • 1996/97        8.6 million tons
      • 1997/98        9.0 million tons
      • 1998/99        9.1 million tons
      • 1999/2000    9.2 million tons
  • Direct consumption includes simple processing of traditional products.
  • Rice consumption per capita is decreasing in line with changing consumer preferences and economic status.

International trade

  • Thailand commands a major portion of the international rice trade accounting for 27% of the world share. 
  • The total exports of rice in 1998 accounted for Bt 87 billion equivalent to 6.4 million tons.
  • In 1999, Thailand remained the top rice exporter with a record value of 6.658 million tons, worth Bt72 billion.
  • The stronger baht resulted in a decline in value compared to 6.4 million tons with a value of Bt 87 billion of the previous year (a rise of 5 percent in volume, but a 16-percent plunge in baht terms).
  • This year is predicted to be difficult.  The world supply of rice is increasing (396 million tons).  Vietnam is becoming a major competitor, together with Pakistan and China
  • A 30-percent import tax imposed by Indonesia, the major importing country, implemented January 1 2000, will pose a challenge for Thailand.

 

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