Thai Traders Say Growth in Rice Exports Relies on Sourcing New Markets.

Nov. 2--The government's attempts to increase rice shipments to major markets carved out by the private sector are counter-productive, according to traders who say export growth depends on finding new markets.

The Commerce Ministry plans to send 10 teams to markets with potential in Africa, Asia and the Middle East in an attempt to reduce the state's rice stock of about two million tons.

The problem, according to private traders, is that the government will be competing with them. They have urged the government to focus on new markets instead.

Sombun Pathaichan, the manager of the Rice Exporters' Association said the existing arrangement had worked properly with exports totalling 5.88 million tons in the 10 months to the end of October, up from 5.03 million tons in the same period last year.

Of the total, 5.6 million tons were exported by private traders to 120 countries, and 282,970 tons under inter-government deals with Brunei, Iran and the Philippines.

This year, Thailand's rice exports are expected to reach a record of between seven million and 7.1 million tons, up from the existing mark of 6.7 million tons in 1999.

Mr Sombun said that the existing arrangement has been used for decades with the government as the regulator easing export problems.