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Thai Rice Exports to Drop on Unrest, Demand, Chookiat Predicts
26.05.2010 11:14 "Agro Perspectiva" (Kyiv) —
Rice exports from Thailand, the world’s largest shipper, may slump as much as 6.6 percent after deadly anti-government protests hurt sales, compounding the impact of lower global demand, according to an industry group.
Exports may total 8 million to 8.5 million metric tons this year, Chookiat Ophaswongse, adviser to the Thai Rice Exporters Association, said by phone today, revising an earlier projection for a gain to as much as 9.5 million tons. Exports totaled 8.57 million tons in 2009.
Chookiat’s revised forecast illustrates the damage to Southeast Asia’s second-largest economy caused by the unrest, which peaked May 19 when a military assault cleared protesters from Bangkok. Riots and protests have killed more than 80 people, with curfews imposed in about a third of the nation.
«Thailand will see a sharp decline in exports in the third quarter as there are nearly no orders at the moment,» said Chookiat, who has served as the association’s president. Buyers have shifted to Vietnam as they are uncertain about the delivery of Thai rice, he said. Vietnam is the second-largest exporter.
The Thai economy may shrink in the third quarter «if the unrest can’t be settled,» Ampon Kittiampon, secretary-general at the National Economic and Social Development Board warned at a briefing today. The economy grew 3.8 percent in the first quarter from the previous three months, the government said.
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