Thailand rice stockpile to reach 12MT in 2012-13

Poor rice sales could push Thailand’s rice stocks to a record 12 million tonnes in 2012-13, up about 26% from an estimated 9.5 million tonnes of rice in the government stockpile in 2011-12, according to the latest report of the London-based International Grains Council (IGC).

Record ending stocks in 2012-13 would be about a million tonnes higher than Thailand’s total annual rice consumption of 11 million tonnes, and about 50% higher than the full year exports of about 8 million tonnes in 2012-13, says the IGC.

In 2011-12, ending rice stocks in Thailand are estimated to grow about 73% to 9.5 million tonnes, up from about 5.5 million tonnes in the previous year. The spike in rice stocks is mainly due to the reduction in 2011-12 rice exports to about 6.5 million tonnes, down almost 40% from the record 10.6 million tonnes exported in 2010-11.

Thailand’s rice exports have declined sharply since the implementation of the government rice mortgage program in October. Besides making Thai rice uncompetitive in the international rice market, the mortgage programme is also likely to boost rice production in the country.

According to IGC, Thailand’s rice production in 2012-13 is forecast to increase to 21.2 million tonnes, up about 3% from around 20.5 million tonnes recorded in 2011-12, which had grown below 1% from around 20.3 million tons in 2010-11.