Key Thai rice buyer Iran has stopped buying for this year after importing nearly six times its purchases of last year, a senior Thai official said on Thursday. "Iran has finished buying for this fiscal year after importing a very large amount compared to last year," Thai Commercial Counsellor to Iran Napadol Thongmee told Reuters.
Iran was believed to have bought up to 900,000 tonnes of Thai 100 percent white rice grade, a 460 percent increase from last year's 160,481 tonnes. Shipments were expected to finish by the end of October, he said.
Iran's rice imports from Thailand rose sharply this year as its trading relationship with Vietnam, the world's number two exporter being Thailand, turned sour in 2005 due to low quality and some delivery problems, Napadol said. Iran was expected to buy more Thai rice next year as poor weather had cut domestic production.
"I'm confident Iran will buy at least 900,000 tonnes next year as drought has hit its rice growing areas," he said. Iran produces around 300,000 tonnes of rice each year but consumes one million tonnes, he said. However, Iranian buyers also chose to halt their buying of Thai rice due to higher prices and supply uncertainties in the wake of this week's floods, the worst in 11 years.
Thailand aims to export 7.5 million tonnes this year, up from 7.28 million tonnes in 2005. From January to September, Thailand shipped 5.39 million tonnes, slightly lower than the 5.46 million tonnes it exported in the same period last year.