Thai rice price to surge 13% on demand

BANGKOK: The price of Thai rice, the benchmark for Asia, may climb 13% this year as demand from Indonesia and the Philippines boosts exports and tightens global supply, according to Thailand’s Foreign Trade Department.

Thai 5% white rice might climb to US$600 a tonne this year, Manat Soiploy, the department’s director general, said yesterday. The price has declined 0.9% so far this year, and was last at US$533 a tonne on Feb 23.

Rice, the staple food for half the world, has surged 50% from last year’s low as governments boosted stockpiles to curb rising domestic prices that contributed to protests in North Africa and the Middle East.

The May-delivery contract in Chicago gained as much as 1.7% to US$14.55 per 100 pounds. Futures reached a record US$25.07 in April 2008.

Exports from Thailand this year might rise as much as 5.2% to 9.5 million tonnes, Manat said. The country shipped 9.03 million tonnes in 2010, the Ministry of Commerce said.

The Philippines would open bids to import at least 1.5 million tonnes in the second and third quarters, while Indonesia and Bangladesh would continue importing rice to bolster inventories and strengthen food security, Manat said.

Indonesia and the Philippines are the world’s top two buyers after Nigeria, according to the US Department of Agriculture.

(Source: http://biz.thestar.com.my/news/story.asp?file=/2011/3/1/business/8159958&sec=business)