Thai rice prospects are going from bad to worse, as shipments now face a new logistics challenge on top of the strong baht and high rice prices. According to a source from the rice trading industry, seven or eight Thai rice exporters were recently informed by an undisclosed EU-based shipping firm that their rice shipments to buyers might hit a snag, as the brokers have yet to fully settle their vessel fees.

"Rice exporters are now concerned the shipments may be delayed, rendering them unable to collect payments," said the source, who asked not to be named.

"They are also worried about the quality of the rice if the ships have to dock at several ports before they reach their destination."

Normally, Thai rice exporters collectively hire large foreign ships to carry bulk cargo of 30,000 to 40,000 tonnes.

Korbsook Iamsuri, president of the Thai Rice Exporters Association, admitted that with the litany of obstacles besieging Thai rice shippers, the country is unlikely to regain the top exporter mantle any time soon. Most buyers are focusing on price rather than quality.

The latest Rice Market Monitor from the Food and Agriculture Organization (FAO) said India could export 8.3 million tonnes of rice this year, making it the leading rice exporter two years in a row.

India surpassed Thailand last year for the first time in three decades, shipping 10.3 million tonnes of milled rice compared with Thailand's 7 million.

The FAO estimates India will remain the top rice exporter, with Vietnam and Thailand following with 7.8 and 7.7 million tonnes, respectively.

Tikhumporn Natvaratat, deputy director-general of the Foreign Trade Department, said as of May 15 Thailand had shipped 2.15 million tonnes of rice, down by 10% from the same period last year.

Export value dropped by 6% to 1.5 billion baht.