Thailand's rice exports fall

Thailand's rice exports fall

BANGKOK, Thailand (AP): In a blow to cash-strapped Thailand, the country's second quarter rice exports are likely to decline because of sluggish demand from leading importing nations, government officials and rice industry executives said Monday.

Key rice importers, such as the Philippines and Indonesia, are set to reduce purchases in the second quarter because they are expected to harvest significantly more themselves than last year, officials said.

That's bad news for Thailand, the world's largest rice exporter. Its earnings from rice exports have already been hit by a 20 percent fall in prices since the start of the year.

Last year, rice accounted for about 4 percent of exports, earning US$2.1 billion.

While some rice traders believe exports will rebound in the third quarter, they said that will be because the price will continue to drop.