Can Thailand Remain the Main Rice Exporter After Flood Incident in 2011.
“Can Thailand remain the world’s biggest rice exporter after the flood incident in 2011 and the current fierce competition from Vietnam ? ”
By ORNICHA Tantiwechwuttikul ID# 5004640669 A research paper as part of EE460: Thai Economy Semester 1/2011 Thammasat University
Abstract
Thailand was hit by the worst flood in 2011 causing vast damage to Thai economy as a whole. The floods have damaged 10 million rai (1.6 million hectares) of rice land, mostly in the Chao Phraya River basin, cutting the main harvest to about 19 million tons from 25.1 million tons and thus causing the reduction about 6 million ton of rice production in 2011. However, this research paper found that the reduction in our rice production in 2011 will be offset by the recovery in the rice growing after the first half in 2012. Moreover, Thailand’s reduction in the world rice export did not cause much fluctuation in the price of the world market. However, this research paper found that the main concern whether Thailand can remain its position as the number one rice exporter is not due to the short-run shock by the flood but rather the competition from Vietnam rice in terms of R&D, productivity, domestic policy and cost factors. Vietnam had gained more and more market share in rice export in the world market since 2005 and already become number 1 in Southeast Asian market and number 2 in the world market. Thus this situation posted the big challenge for Thailand in its long-term policy to cope with such problem in order to maintain the rank as number one rice exporter in the world market.
Key Question: “Can Thailand remain the world’s biggest rice exporter after the flood incident in 2011 and fierce competition from Vietnam rice?” I. Introduction It cannot be denied that Thailand had been the world’s biggest exporter of rice for
By ORNICHA Tantiwechwuttikul ID# 5004640669 A research paper as part of EE460: Thai Economy Semester 1/2011 Thammasat University
Abstract
Thailand was hit by the worst flood in 2011 causing vast damage to Thai economy as a whole. The floods have damaged 10 million rai (1.6 million hectares) of rice land, mostly in the Chao Phraya River basin, cutting the main harvest to about 19 million tons from 25.1 million tons and thus causing the reduction about 6 million ton of rice production in 2011. However, this research paper found that the reduction in our rice production in 2011 will be offset by the recovery in the rice growing after the first half in 2012. Moreover, Thailand’s reduction in the world rice export did not cause much fluctuation in the price of the world market. However, this research paper found that the main concern whether Thailand can remain its position as the number one rice exporter is not due to the short-run shock by the flood but rather the competition from Vietnam rice in terms of R&D, productivity, domestic policy and cost factors. Vietnam had gained more and more market share in rice export in the world market since 2005 and already become number 1 in Southeast Asian market and number 2 in the world market. Thus this situation posted the big challenge for Thailand in its long-term policy to cope with such problem in order to maintain the rank as number one rice exporter in the world market.
Key Question: “Can Thailand remain the world’s biggest rice exporter after the flood incident in 2011 and fierce competition from Vietnam rice?” I. Introduction It cannot be denied that Thailand had been the world’s biggest exporter of rice for
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