Thailand, Vietnam eye RP rice exports

Rice imports by the Philippines, the world's top buyer, may climb 13
percent next year after typhoons damaged the crop, prompting Vietnam and
Thailand to start talks early to grab a piece of the action.

While Thailand, after missing the boat this year, has started
discussions to supply Manila with 500,000 tonnes annually from next
year, Vietnam is hopeful of another government-to-government deal in
2010, after supplying the bulk of their needs this year. A rise in
Manila's purchases could lift Thai rice prices , seen as the benchmark
for the market, from the current $535 a tonne, but it is unlikely to
take them anywhere close to the record high of $1,080 per tonne seen at
the height of a panic over food security in April 2008.

Agriculture undersecretary Bernardo Fondevilla said in Manila that rice
imports for 2010 would hit 2 million tonnes.

The Philippines has imported 1.775 million tonnes of milled rice this
year, the bulk of it from Vietnam, versus a record 2.3 million tonnes in
2008.

Chookiat Ophaswongse, president of the Thai Rice Exporters Association,
told Reuters the country was in talks to supply the Philippines with
500,000 tonnes of milled rice a year, as it aims to boost shipments to
10 million tonnes next year.

But Manila is only willing to agree to a smaller initial 200,000-tonne
deal, Chookiat said.

''The Thai government wants to make it like 500,000 tonnes annually, and
the Philippines commented that it may reduce the figure to 200,000
tonnes, so it's still a back and forth,'' Chookiat said on the sidelines
of a rice conference on the island of Bali.

Thailand sold more than 500,000 tonnes of rice to the Philippines in
2008, but shipments this year dwindled to 80,000 tonnes, he added.

VIETNAM HOPEFUL

Pham Van Du, deputy director general at Vietnam's Ministry of
Agriculture and Rural Development, told Reuters he was hopeful of
another government-to-government deal with Manila for the latter's 2010
requirements.

''I think they may continue under G-2-G (government-to-government)
because Vietnamese rice is good quality and low priced,'' said Du.

Vietnam's top-grade 5 percent broken grain stood at $395-$400 a tonne
this week, free-on-board basis, versus $390-$400 last week.

The world's second-biggest rice exporter, Vietnam is looking to export 6
million tonnes of the grain in 2010, he said.

The country has contracted 5.8 million tonnes so far this year and is in
discussions for further shipments that could take 2009 exports to a
record 6.3 million tonnes, up about 35 percent from last year.

''Production may be the same, so we may export about 6 million tonnes
for 2010,'' Du added.

Vietnam is forecast to produce 23.8 million tonnes of milled rice for
the 2009/2010 marketing year, up 0.4 percent from the previous period,
according to the US Department of Agriculture.

Typhoon Ketsana, which killed nearly 300 people in the Philippines and
38 in Vietnam, had largely spared the main rice-growing region in
southern Vietnam, said Du.