Thailand, Vietnam discuss co-operation

Thailand and Vietnam, the world's two top rice exporters, yesterday began three days of talks on co-operation in the rice trade in hopes of ending a price war and increasing prices to farmers. The meeting followed an accord signed last year in which the two countries' rice trade groups agreed to meet more frequently to exchange information and expand investment in their countries.

Officials from Laos, Cambodia, and Burma have also joined their Thai and Vietnamese counterparts in the discussions in Halong Bay to collaborate to improve the image and quality of Southeast Asian rice. The five countries control about 45% of the global rice trade.

Participants would share ideas on market trends for the second half of the year and discuss non-tariff barriers imposed by buying countries, said Chookiat Ophaswongse, president of the Thai Rice Exporters Association, Chookiat Ophaswongse, president of the Thai Rice Exporters Association and head of Huay Chuan, one of Thailand's largest rice exporters, said many Thai
businessmen want to hear details from the Vietnam Food Association, which invited Thai operators to invest in warehouses and related facilities.

Some rice traders such as Thailand's CP Group expressed interest in the investments but were still uncertain about local regulations and incentives.

The meeting would also consider whether to accept Pakistan as a member. Thai exporters are concerned that Pakistan's different grain types and trade circumstances make it incompatible.

Meanwhile, Mr Chookiat has expressed concern over rising transport charges caused by a shortage of ships and a stronger baht. He said some ocean shippers required additional payments if exporters load more than 14 tonnes per container.

''Normally, we can load as many as 21 tonnes in a container but now shipowners are blaming us for such heavy weight and extra expense is the result.''

Mr Chookiat added that expenses have increased to about US$100 per tonne, from $50-60 a tonne, while the strong baht has made Thai rice be more expensive.

At a 34 baht per US dollar, the FOB (free on board) price of 100% B-Grade white rice this week was $341 a tonne, up from $338 quoted last week. Hom Mali fragrant rice rose to $579 from $574 per tonne.

The vessel shortage might deter the country's plan to ship a total of 8.5 million tonnes this year.