Economy, Business And Markets

Thai Rice to Return After 3-Year Hiatus

Thai Rice to Return After 3-Year Hiatus
Thai Rice to Return After 3-Year Hiatus

Thailand’s Foreign Trade Department has said his country would resume exporting rice to Iran as soon as Tehran lifts an import ban on Thai rice.

Three years ago, Iran imposed the ban after a Thai exporter defaulted on a rice-shipment contract, Nation Multimedia said.

Iran plans to send inspectors from both the health ministry and private businesses to Thailand next month to ensure the quality of rice before any shipment. The Iranian team is also set to inspect Thailand’s production procedures.

The Thai government has in the past tried hard to persuade the Iranian government to import Thai rice, as Iran is a major importer of rice, said Duangporn Rodphaya, director general of Thailand’s Foreign Trade Department, as reported by Nation Multimedia.

Iran is expected to import about 1.3 million tons of rice this year from various nations. The country imported $150 million worth of rice from Thailand in 2011, but one year later, the value of Thai rice shipments to Iran declined to barely $2.1 million.

Thailand will most probably reclaim its former status as the world’s largest rice exporter as the southeastern Asian country’s rice shipments are on course to hit 11 million tons this year. The rise is said to be the result of price competitiveness and the government’s accelerated attempt to dispose of stocks.

India is the second-largest rice exporter to Iran, so far this year, with shipment volume of 6.84 million tons, followed by Vietnam at 5.32 million, Pakistan at 2.49 million, and the United States at 2.04 million tons.