Thailand's rice exports are expected to exceed the target for this year. Exports for the whole year are likely to be more than the government's target of 8.5 million tons, according to Department of External Trade officials.

This is despite various trade barriers that have been erected by some trading partners.

More than four million tons of rice were exported in the first six months of 2004.

Government officials say that the major problems facing Thailand's rice producers and exporters stem from the obligations of the World Trade Organisation (WTO)'s requirements to reduce government support for the local rice industry.

Trade barriers which have affected the Thai exporters include those imposed by some of major rice importing countries like Nigeria, the Philippines and Indonesia, which have all set high import tariffs.

And in the case of Peru non-tariff barriers, especially the ban on the import of “peeled white rice” from Thailand in March this year over concerns that it may contain the “IAAP” bird-flu virus.

Other problems which the Thai industry now faces include the export of inferior grades of rice, the lower production costs of some of its competitors, stiff competition among the numerous local rice exporters, the credit and payment risks involved in rice exports, and the use by some countries of international rice brokers.

Some countries have blocked or slowed rice imports, even in the face of strong domestic demand for rice, in order to protect domestic rice producers in the interests of preserving political stability.

This is the situation in the case of Indonesia which banned rice imports, except glutinous rice, between January and July this year.

The appointment of only two surveyors--PT Persero Sucofindo and PT Persero Surveyor Indonesia to inspect the quality of imported rice by the Indonesian government also raised the cost of imported rice because of time delays in inspection, freight costs and volatile exchange rates and freight costs.

Despite these problems, Thailand expects to remain one of the world’s leading rice exporters.

The country's rice export's are increasing every year, according to the Commerce Minister.

This year's exports are likely to be more than eight million tons, he said.

Source : Thai News Agency