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Value Adding as a Way to Enhance Competitiveness of Thai Rice |
| Source: |
thailand.prd.go.th |
| Source Date: |
Wednesday, January 05, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Thailand |
| Created: |
Jan 11, 2011 |
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Thailand has retained its status as the world’s largest rice exporter. Prime Minister Abhisit Vejjajiva said, however, that the ranking is not as important as the ability to add value to Thai rice and create more income for farmers.
The Prime Minister pointed out that the production of good-quality rice would be an indication of the competitiveness of Thai rice, a major cash crop for Thailand and the staple food for over half of the world.
Talking about the state policy and Thai rice research, he said that the strength of Thai rice is that its quality has been well- recognized worldwide, while the rice trading system has been developed steadily. Even so, Thailand is facing a challenge, since there are many competitors, especially some other ASEAN countries. All ASEAN countries will emerge as an ASEAN Community in 2015. In the face of this situation, Thailand needs to focus on research and development on a continual basis, so that it would be able to maintain the quality of Thai rice, thus enabling it to compete effectively.
The Prime Minister suggested that the Rice Department under the Ministry of Agriculture and Cooperatives introduce new technology for research and development in order to boost the efficiency of rice production and develop production in accordance with climatic changes. This would create not only income stability for Thai farmers but also food security for the world.
The Rice Department and the Thai Rice Foundation on 21 December 2010 signed a memorandum of understanding (MOU) to promote and develop Thai rice and the lives of farmers. The MOU also includes the protection and preservation of Thai rice varieties, the building of the next generation of farmers, research and development to add value to Thai rice, and the promotion of rice culture.
Director of the Thai Rice Foundation Sumet Tantivejkul expressed his concern over the decline in the number of people engaged in rice farming to 9 percent of GDP in the Ninth and Tenth National Economic and Social Development Plans, from 2002 to 2011, against 40 percent during the First to the Seventh National Development Plan. Since Thai rice brings in 150 billion baht in national revenue each year, he said that the Government should attach greater importance to policies concerning Thai rice and farmers.
Rice planting in Thailand covers an area of 60 million rai, or 24 million acres. Thailand holds a rice market share of some 25 percent. Domestic consumption accounts for 55 percent of the total production, with the remainder exported worldwide. More than 50 percent of exports were of the high-grade, long-grain rice. Demand for Thai rice is still great, especially for jasmine rice, or Khao Hom Mali, which is the most popular of all Thai rice varieties. Khao Hom Mali accounts for half of the country’s rice export income and it has become Thailand’s biggest brand name.
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Value Adding as a Way to Enhance Competitiveness of Thai Rice Thailand has retained its status as the world’s largest rice exporter Prime Minister Abhisit Vejjajiva said however that the ranking is not as important as the ability to add value to Thai rice and create more income for farmers
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