Competitors in Vietnam, China, Japan, Asia, Africa, India, Myanmar, Indonesia, Egypt

The report about "Competitors in Vietnam, China, Japan, Asia, Africa, India" is located on http://www.grandwaktu.com Rice prices may keep falling, unlike that of wheat and soybeans. Photo by EPA/LUONG THAI LINH Bags of rice for sale at stalls in Hanoi. Stocks of rice held by Vietnam, Pakistan, Thailand, India and the U.S. are rising, putting downward pressure on prices. Rice stocks held by the world's top exporters could rise to record highs this year due to bountiful harvests, shrinking import demand in the main markets and a costly government policy, according to a report released this week by the International Grains Council, a United Nations-linked body. Stocks of rice in India, Vietnam, Pakistan, Thailand and the U.S. will rise 3.8% to 38.2 million metric tons in the aggregate 2012-13 marketing year, it said. Between them, the five are responsible for more than 80% of the global trade in rice. Some are now struggling to get rid of excess stocks and prevent waste. Thailand, one of the biggest exporters, is under strain from a subsidy it gives producers. Thailand was for long the top exporter. However, it slipped to the third spot in 2012 due to a government policy of buying from farmers at above-market prices to boost rural incomes, and then keeping rice in stock to prevent it further undermining global prices. Thailand now holds record stocks of more than 15 million tons. Last year, government's purchase of rice from growers was a key factor in slashing rice export earnings, which fell to just over $3.7 billion from more than $6.0 billion in 2011. "Unless the government sells rice to exporters well below its purchase price, it won't be able to reduce its stockpile because of much lower international prices," Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association told Dow Jones Newswires. The Thai government has allocated THB240 billion (US$8 billion), equivalent to nearly 2% of the country's gross domestic product, to buy 15 million tons of unmilled rice in the current crop year that started Oct.1. Mr. Ophaswongse said Thai rice stocks may balloon to 20 million tons because importers have turned to other, cheaper rice.