Monday, July 20, 2009

[Thai] Hom Mali rice under threat

Lack of R&D leads to smaller market share

20/07/2009
By PHUSADEE ARUNMAS
Bangkok Post


Thai Hom Mali rice is under threat of losing its market share to Vietnam and China, as higher prices and a lack of investment in research and development are harming the prized Thai grain's export competitiveness, exporters warn. "Thai Hom Mali rice quality is deteriorating, as higher-than-market prices in the government's conventional rice pledging programme have encouraged farmers to grow the grain in large amounts without concern for quality," said Charoen Laothamatas, the president of Uthai Produce, the country's largest Thai Hom Mali rice exporter.

Under the pledging programme, thorough quality inspections for all lots pledged is unlikely, while aromatic quality suffers when the rice is kept in government stocks for too long.

Mr Charoen says the unique aromatic quality of Thai Hom Mali has been dropping steadily because the industry has not invested in R&D of rice breeds and productivity.

Thailand in the past exported about 2.5 million tonnes a year of the grain. This year, shipments are forecast at only 1.6 million 1.7 million tonnes, a drop from 2 million last year, as traditional buyers have shifted to other producing nations particularly for Vietnam.

Thai Hom Mali is currently quoted at up to US$1,000 per tonne, while Pathum Thani rice, a cheaper strain of fragrant jasmine rice, is around $800, almost double the prices of the grains from Vietnam and China which were quoted at only $485 and $400-500 per tonne respectively.

For the first five months of this year, Thailand shipped 1.17 million tonnes of Thai Hom Mali rice, earning 28.5 billion baht.

Vietnamese aromatic rice is considered to have lower quality but the country has been investing in improving the grain, while China has also invested heavily in aromatic rice and launched the new strains every year.

According to Mr Charoen, Chinese fragrant rice has amylose content of 16-17% which is close to Thai Hom Mali and Pathum Thani

Hom Mali rice production this year is expected to drop by 40% due to a water shortfall and climate change.

In the 2008-09 season, Thailand produced 7 million tonnes of paddy or about 3.5 million tonnes of milled rice. Thai Hom Mali rice in government stocks was estimated at about 700,000 tonnes of milled rice.

Wallop Manathanya, CEO of Bangsue Chiameng Rice Mill, warned Thailand's rice industry would also see more trouble next year once import tariffs on milled rice and paddy are eliminated under the Asean Free Trade Area agreement.

Rice smuggling from border countries is expected to proliferate and this would eventually tarnish Thailand's rice quality and reputation, he added.

4 comments:

Anonymous said...

i don't understand why the thai claims everything to be theirs, even rice brand like this. i know for a long time that cambodia has this rice type a long time ago since even before the KR era. why the thai keeps claiming it to be only their is beyond anyone's comprehension. well, given the greedy nature of the thai (siem) who's surprised about that!

ps: don't be surprise if cambodia is starting to reclaim our status again as the world #1 rice exporter like during the golden era of our history (during the 1950s and 1960s up until the stupid KR took over in 1975). god bless cambodia.

Anonymous said...

in khmer, we called this rice brand that the greedy thai claim to be only their "ang kor kroap" or fragrant rice. well, in khmer kroap doesn't always means smell nice, but taste good as well. please get to know cambodia more by learning and asking our better educated people lots of questions. thank you.

Anonymous said...

maybe she fuck with Siam guy and she like it. Siam slut......

Chris said...

This is a real shame and nees to be resolved.