Hom Mali Rice Trade

The Thai government is busy taking steps to boost Thai Hom Mali rice in the world markets. The government is encouraging production in the Northeast of the country, since this area has been deamed the most suitable, and has proved to yield the best crops.

Currently, Thailand allocates 28 per cent of its rice-growing land, or about 16 - 17 million rai, or about 2.6 million hectares (6.25 rai = 1 hectare) to cultivating Hom Mali rice.

The majority of cultivation takes place in the northeast region, including Amnat Charoen, Yasothon, Mookdahan, Nakhon Phanom, Kalasin, Kon Kaen, Sakolnakhon, Mahasarakham, Surin and Roi Et, and covers 13.9 million rai in total. Out of this area, Roi Et, Surin, Mahasarakam, and Yasotorn, the most productive area for cultivation, cover f 1.4 million rai in total, and produce crops worth around 10.3 billion baht in total.

By the end of this year, the production of Hom Mali is expected to remain at 4.8 million tons (in paddy). This will likely increase as the government promotes higher production levels and supports the development of new, higher yielding varieties.

In August of this year the Thailand Rice Institute successfully developed Patumthani 1.This new variety has a growing cycle of about 120 days during the main crop cycle (Aug.- Nov.) and is less sensitive to sunlight when compared with Dok Mali 105, which was the first widely-grown variety of Hom Mali. Moreover, Patumthani 1's unique feature is the fact that it has been developed to increase yields. Originally, the fragrant rice yield stood at about 300-400 kg/rai. With Patumthani 1, the yield has increased to more than 700 kg/rai. The Institute began distributing Patumthani 1 to farmers for the main rice-growing season this year. As a result, the Hom Mali rice that started to flow into local markets last month mainly consists of the Patumthani 1 variety.

Up until October, Thailand exported a total of 786,000 tons of Hom Mali. This figure is equal to about 18% of total rice exports, which stand at 4.7 million tons. In 1999, Thailand exported a total of 1.14 million tons of Hom Mali, 19.48 per cent, or 222,000 tons of which went to the USA, 18.73 per cent, or 213,000 tons, to Hong Kong, and 14.48 per cent, or 164,000 tons, to China. The total export value amounted to 19.9 billion baht. At the end of this year, Thailand will have exported at least 1.3 million tons of Hom Mali.

Although the increase in production and trading levels will likely lead to some downward pricing pressure, Hom Mali exports still have strong growth potential as demand from overseas markets for this variety remains strong. Although it is at a historical low, the Hom Mali price has been influenced by overall downward trend in rice price globally. Once Hom Mali has established itself in the global rice market, the price will pick up, as demand gradually exceeds supply.