The Potential for Commodity for the Future of Thailand - Research Paper Example

Thailand as the largest exporter of rice has a substantial interest in the rice market and must prepare for the coming year to match the pressure of the growing demands that will be put on the stocks of rice.Rice market is subject to lathe logged response of production. Owing to this fact one of the problems that plague the rice market in 2010 is the increased number of natural disasters that have diminished the level of production of the rice in 2009. Monsoons, earthquakes, and landslides have affected the stock, causing an impending possibility of a shortage.

The cumulative effects of these natural calamities reflect through a 1.9% decrease in the production of rice in 2009 comparing to that of 2008. However, the story differs among countries. Countries such as Afghanistan, Cambodia, China, Myanmar, Thailand, Korea, and Vietnam have all shown good crops for the year 2009 while India, Bangladesh, Taiwan, Iraq, Japan, Nepal, Pakistan, the Philippines, and Sri Lanka all witnessed lesser crop production due to unforeseen circumstance (Food Outlook, 2009).

In a country like Thailand, using such comparative advantage of a plus in a high demand market should be considered in order to assure the best of the current situation.According to Devries (2001), the demand for rice throughout the late 20th century grew at a pace of about 5.6% per year. Such a growth rate projects rice as a prime source of income for a rice-exporting nation (DeVries, & Toenniessen, 2001, P. 131). According to Science Daily’s article “Biologists Trace Back Genetic Origins of Rice Domestication” (2006).