BANGKOK (Commodity Online) : World’s largest rice exporter, Thailand saw its exports plummeted more than 30 per cent in the first half of this year because of competition from cheaper Vietnamese jasmine rice.

According to Thai Rice Exporters Association "More buyers in Hong Kong are turning to Vietnamese rice as its jasmine rice is about $550 per tone while Thai jasmine rice is sold at $900 a tone,"

The Association said 60,000 tonnes of Thai rice were exported to Hong Kong in the first two quarters of 2010. The country sold 300,000 tonnes to Hong Kong at the same time last year.

Thai government's announcement to guarantee the price of unmilled rice at 15,000 baht a tonne has made its rice more expensive and this year's rice output would likely be lower than the previous year, it said.

Thailand's jasmine rice exports for 2010 could drop to 1.6 million tonnes. The country previously projected exports of two million tonnes this year, the statement said.

The Department of Export Promotion reported that Vietnam sold $11 million worth of rice to Hong Kong and China in the first five months of this year. The amount is almost equal to Thailand's total rice exports to Hong Kong for an entire year.

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