1、Chaiwat S+662 296 2000 Ext.50880THAILAND INDUSTRY OUTLOOK 2019-21RICE INDUSTRYAugust 20191Krungsri ResearchBetween 2019 and 2021,outputs of Thai rice will tend to rise slightly.Through these three years,although drought at the beginning of the main planting season may cut some production in 2019,hig

2、her prices will incentivize farmers to expand the area under cultivation and/or to increase the number of plantings they make during the years.As regards exports,the total volume will likely decline following the final running down of government rice stocks,but export prices will remain strong on th

3、e high quality of Thai rice that meet demand in export markets,although global rice stocks continue to increase.With high export price,it is still expected that the value of rice exports will rise overall.Given these likely trends,rice exporters will still be able to remain profitable.However,some p

4、layers especially rice mills,silo operators and independent rice retailers,are expected to encounter rising competition due to high levels of overcapacity.OverviewRice is a major cash crop which is important both for consumption(as main food of Thai people)and export(as a major agricultural export p

5、roduct of Thailand).Given its role as a vital economic crop,rice naturally has a central place in the provincial economy.In terms of land under cultivation,rice is Thailands most planted crop,taking 45.2%of all Thai farmland,and a total of 4.3 million Thai households(74.4%of agriculture household sh

6、are1/).The overarching importance of rice has naturally led governments of all types to pay special attention to rice farmers and their needs,and a wide range of policies to help rice farmers have been tried out over the years.These have included 1)price-based policies,such as the rice price guarant