Thai Rice Export Policy Overhaul: Support and Challenges Highlighted

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In a significant shift aimed at rejuvenating Thailand's rice export market, Commerce Minister Pichai Naripthaphan unveiled new policy reforms after a key meeting. These changes, aiming to provide greater opportunities for farmers and dismantle existing monopolies, have generally been well received by the export community. Yet, the seasoned Thai rice exporter Chookiat Ophaswongse points out that while the adjustments are promising, particularly for small businesses, considerable obstacles remain before these businesses can fully leverage international market opportunities.

 

The new measures, part of updates to the 1946 Rice Trading Act, are set to take effect by the end of January. They will ease stock requirements, exempting farmer groups and cooperatives entirely and reducing the burden on small businesses. A significant highlight is the lowered export permit fees, making the process less financially onerous for small and medium-sized enterprises (SMEs).

 

Despite these positive strides, Chookiat underscores persistent challenges such as identifying viable export markets and securing essential working capital. To ensure the policy reaches its full potential, he advocates for government assistance in facilitating access to low-interest funding, which could significantly boost SMEs' capacity to participate effectively in the rice trade.

 

 

Pichai also announced plans for revising the rice export permit fee structure. Once implemented, certain fees will be slashed, favouring SMEs and reducing their financial barriers. These revisions are expected to go through necessary approvals, with a final decision anticipated by March.

 

Looking ahead, the government envisions a completely liberalised rice market, free of stock requirements and permit fees, to empower SMEs further. This ambition aligns closely with ongoing diplomatic efforts, as Prime Minister Paetongtarn Shinawatra plans a visit to China to expedite rice delivery agreements, underscoring Thailand's commitment to strengthening international trade relationships.

 

-- 2025-01-20