More parboiled rice available from Thailand

Strong exports of parboiled rice have drawn new players and investment
into the business, say leading exporters.

About 50 rice millers are planning to remodel their milling process and
install steamers and dryers to produce parboiled rice, which is popular
in many countries in Africa and the Middle East.

Rice millers, who have seen their business decline since the government
terminated its rice-pledging programme early this month, are among new
players entering parboiled rice production.

"The move is expected to significantly increase the supply of parboiled
rice, by about 50%, and to prop up exports of the grain substantially
this year," said Vichai Sriprasert, president of Riceland International
Co, a market leader.

Thailand's rice exports - especially of parboiled rice - have benefited
greatly from India's absence from the market. India last month announced
its suspension of most rice exports except basmati due to severe drought.

The absence of India from the market will likely increase Thailand's
parboiled rice exports to between 3 million and 3.5 million tonnes this
year, said Mr Vichai.

Restricted Indian exports will also propel Thailand's total rice exports
to between 8.7 million and 9 million tonnes for the year, passing a
previous forecast of 8.5 million tonnes, according to the Thai Rice
Exporters Association (TREA).

"Parboiled rice has become a big export grain since last year, following
the global food crisis, and its sales remain brisk with less
competition," said Mr Vichai, the TREA's honorary president.

Kasikorn Research Center expects India's absence from the market to lift
Thai rice exports strongly from the last quarter of this year through to
the first half of 2010 - especially parboiled rice, which could reach
3.5 million tonnes by the end of 2009, up from a normal volume of 2 million.

African countries, which bought about 78% of Thai parboiled rice last
year, are likely to shift their orders from India, propelling Thailand's
rice exports to nearly 9 million tonnes this year.

Given strong demand from Africa, which imported 4.6 million tonnes of
Thai rice last year, exports next year are expected to boom, he said. Mr
Vichai.

Parboiled rice - which is made by soaking, steaming and drying rice
prior to milling - also has strong markets in Middle East countries such
as Saudi Arabia, the United Arab Emirates, Kuwait and Oman. These
markets bought parboiled rice from Thailand worth about US$180 million
in the first eight months of this year, up 23% year-on-year.

Converting a conventional mill to produce parboiled rice can cost 10
million baht for a capacity of 100 tonnes a day, said Adisak
Pramualmitra, executive vice-president of CP Intertrade Co.