Recently, it has been reported that the Department of Foreign Trade has raised concerns for over production of Thai rice, despite confirmation that rice exports for this year will be able to hit a previous forecast of 9.5 million tons worth 5.05 billion US Dollars. In this matter, the Foreign Trade Director-General Mr Duangporn Rodphaya revealed that for the first 4 months of the year, the government successfully exported over 3.6 million tons of rice valued at 1.5 billion U.S. Dollars, and that it will definitely be able to reach its target at the current rate.
Further, in this aspect Mr Duangporn explained that nevertheless, the Thai rice production is currently well over supply at roughly 30 million tons a year, while the domestic market only consumes 10 million tons of rice annually and the foreign markets only require an additional 10 million tons from the kingdom. Keeping in view with a demand of just 20 million tons, the Director-General proposed that Thailand should only produce 25 to 27 million tons of rice annually, with the additional five million to ensure sufficient rice stocks if demand even fluctuates.
Moreover, it was also added that as the oversupply of rice comes, falling of the product prices take place. Since, the Thailand becomes less able to maintain competitive prices due to rising living costs, the director-general informed that the farmers should begin shifting their focus towards growing higher quality rice, while allocating areas for others crops, fruit or livestock accordingly.