Thailand being owning the crown of biggest exporter in the world for the last 30 year now has as shipments dropped 35% to 6.9 million tones, as grain from Vietnam and India was much cheaper.
Thai rice exporters are worried as the global supply has decline the most since 2009 because of weaker demand from some African and Asian buyers such as Indonesia, the Philippines and Nigeria
Good rainfall in India, Vietnam, Thailand and the Philippines has led to less import.
Indonesia has announced self-sufficiency in rice. On the other hand, China is a fast grower and largest importer of rice may increase rice imports and alleviate the price slump somewhat because heat waves earlier this year may cut domestic production in China.
The five largest rice exporter of world namely India,Pakistan, Vietnam, Thailand, and the US has a record stockpiles of 42.6 million tonnes in 2013-2014.which is 6% more than earlier years.
Thailand has also raised its rice stockpiles to a record level because of the Rice Pledging Scheme which forced the farmers to grow massive crops.
Thai output will rise 4.5% to 21.1 million tonnes in 2013-2014. Reserves in Thailand will increase 24% to 15.5 million tonnes in 2013-2014.
Record amounts of other crops from corn to wheat are also being produced around the world, combined with the oversupply of rice this is helping to drive global food prices and rice prices to a three-year low. Thai rice prices fell 24% to $445 this year. If the Thai government offers high prices to farmers, higher government losses will be inevitable