Farm-gate prices for Thailand’s Nam Hom (aromatic) coconuts have fallen sharply to just 1–2 baht per fruit, pushing growers towards financial ruin. The slump has prompted urgent action from Commerce Minister Suphajee Suthumpun, who has ordered officials to closely monitor the situation and assist farmers and entrepreneurs across the supply chain. Authorities are also expanding export efforts and investigating nominee firms accused of distorting the market.
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Suphajee said the Ministry of Commerce has been tracking the price decline and had previously implemented comprehensive support measures since July 2025. Nantapong Chiralerspong, Director of the Trade Policy and Strategy Office (TPSO) and ministry spokesman, said agencies have coordinated efforts to tackle the low-price problem.
The Department of Internal Trade had divided its response into three phases. During the first round of low prices from July to September 2025, it absorbed 830,000 coconuts, opened purchase points offering above-market prices in Bang Phae district, Ratchaburi province and organised pre-orders and CSR activities with major private companies and government agencies.
In the second round, from November to December 2025, 460,000 coconuts were absorbed. Measures included linking provincial commerce networks, orders via the MOC GO app, distributing coconuts through petrol stations including PT, Susco, PTT and Bangchak in Bangkok and surrounding areas, and promoting consumption through MasterChef Thailand Season 7.
The third round, from late January 2026 to the present, targets management of 1 million coconuts. Purchase points offering above-market prices have opened in Ratchaburi, Samut Sakhon, Samut Songkhram and Songkhla, alongside sales points in Bangkok and nearby areas, Thong Fah fairs and coordination with modern trade operators and private firms.
Despite a global surge in demand for Thai coconut water, growers report limited benefit from export growth. Industry leaders attribute the collapse to foreign investors, predominantly from China, who they say operate through local nominee companies and now control much of the supply chain.
Natthasak Manusrungsri, managing director of K-Fresh and owner of the All Coco brand, said the industry ecosystem is being hollowed out by foreign capital using nominee firms. “The most heart-breaking reality is that farmers are being squeezed to the point of no return,” he said, warning that growers cannot afford fertilisers or irrigation, leading to stunted fruit and inferior flavour.
In Ratchaburi and other key provinces, foreign-funded factories have expanded rapidly, reportedly renting plantations, building high-speed processing plants and managing their own logistics. Industry sources warned that without protective measures, Thai operators risk displacement from the market.
The Nation reported that calls for intervention are increasing to safeguard local producers and stabilise prices. The future of Thailand’s aromatic coconut sector now depends on whether regulatory or protective measures are introduced.
Picture courtesy of The Nation
Key Takeaways
• Farm-gate prices for Nam Hom coconuts fell to 1–2 baht per fruit.
• The Commerce Ministry has implemented phased absorption measures totalling more than 2.29 million coconuts since July 2025.
• Industry leaders blame foreign-backed nominee firms for controlling the supply chain and suppressing farm prices.
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Adapted by ASEAN Now Nation 28 Feb 2026
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