High cost to pull down Thailand’s rice exports in next decade: Study

Reading Time: 1 minute

K03CWI4PXOThailand’s share in the international rice market will drop further in the next 10 years if the plantation system is not altered to lower the production cost, said an academic of the University of Thai Chamber of Commerce (UTCC).

UTCC’s Foreign Trade Study Department Director Att Pisanwanich estimated that at the current cost, the export value would drop by 87 billion baht ($2.8 billion) in the next decade or 8.7 billion baht ($280 million) per year.

He urged the government to subsidise 20 per cent of production cost, while relevant government agencies should mobilise efforts to overhaul the production process. He also said that the rice sector would survive if it is free from political intervention.

The university’s study shows that due to high production cost, Thailand’s rice is more expensive than that from other countries. The production cost rose from 4,835 baht ($156) per rai (1,600 square meters) in 2004 to 10,685 baht ($345) in 2013. However, the yield stayed unchanged at 450 kilogrammes per rai, against 1,200 kilogrammes in Vietnam.

The lower production cost in Vietnam allowed the country to quote a lower price, putting pressure on Thailand’s rice exports.

UTCC’s study showed that during 2004-2013, Thailand’s rice export value dropped sharply from 94 billion baht ($3 billion) per annum during 2004-2008 to 56 billion baht ($1.8 billion) per annum during 2009-2013.thai

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Thailand’s share in the international rice market will drop further in the next 10 years if the plantation system is not altered to lower the production cost, said an academic of the University of Thai Chamber of Commerce (UTCC).

Reading Time: 1 minute

K03CWI4PXOThailand’s share in the international rice market will drop further in the next 10 years if the plantation system is not altered to lower the production cost, said an academic of the University of Thai Chamber of Commerce (UTCC).

UTCC’s Foreign Trade Study Department Director Att Pisanwanich estimated that at the current cost, the export value would drop by 87 billion baht ($2.8 billion) in the next decade or 8.7 billion baht ($280 million) per year.

He urged the government to subsidise 20 per cent of production cost, while relevant government agencies should mobilise efforts to overhaul the production process. He also said that the rice sector would survive if it is free from political intervention.

The university’s study shows that due to high production cost, Thailand’s rice is more expensive than that from other countries. The production cost rose from 4,835 baht ($156) per rai (1,600 square meters) in 2004 to 10,685 baht ($345) in 2013. However, the yield stayed unchanged at 450 kilogrammes per rai, against 1,200 kilogrammes in Vietnam.

The lower production cost in Vietnam allowed the country to quote a lower price, putting pressure on Thailand’s rice exports.

UTCC’s study showed that during 2004-2013, Thailand’s rice export value dropped sharply from 94 billion baht ($3 billion) per annum during 2004-2008 to 56 billion baht ($1.8 billion) per annum during 2009-2013.thai

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid