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Thai Rice Exports Plummet, Threatening Global Position

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Thai rice exports in the first quarter of the year have seen a dramatic 30% decrease, with a stark 53% drop for 15% white rice compared to last year. This downturn raises alarm among exporters who fear Thailand could lose its status as the world's second largest rice exporter to Vietnam, following India.

 

Chukiat Opaswongse, honorary president of the Thai Rice Exporters Association, reported that Thailand exported only 2.1 million tonnes in the first quarter. In contrast, India exported 2.4 million tonnes, and Vietnam 2.3 million tonnes, indicating competitive pressures.

 

Despite the price drop of Thai rice to about US$400 per tonne, it remains US$40 more expensive than Indian rice. This has led buyers from key markets such as South Africa, Malaysia, and the Philippines to opt for Indian rice due to its cost advantage.

 

Chukiat highlighted that India is poised to export over 20 million tonnes of rice this year, while Thailand's exports are projected at just 7.5 million tonnes. However, the Thai Rice Exporters Association may revise this figure mid-year, depending on market conditions.

 

 

 

Adding to the challenges, the US has imposed a 36% reciprocal tariff on Thai exports, including rice. Although these tariffs have a 90-day pause, US importers may stockpile Thailand's Hom Mali rice during this period. The US annually imports around 1.3 million tonnes of fragrant rice, including approximately 630,000 tonnes of Hom Mali from Thailand.

 

In the first quarter, Thailand exported over 200,000 tonnes of Hom Mali rice to the US at an average price of US$1,000 per tonne. Should the tariffs be enacted, prices could surge to US$1,200–US$1,300 per tonne, in addition to a 10% basic tax increase, potentially diminishing Thai rice's competitiveness in the US market.

 

Charoen Laothammatas, president of the Thai Rice Exporters Association, also expressed concerns about rising shipping costs, which are set to increase by US$6 per tonne by October. This development adds another layer of challenge for Thai exporters striving to maintain their global market share amidst increasing competition and economic pressures.

 

Adapted by ASEAN Now from Thai PBS World

 

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-- 2025-04-22

 

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I'm not sure there is a single grain of truth in this OP.

 

Sorry folks... 🤣

17 hours ago, snoop1130 said:

This downturn raises alarm among exporters who fear Thailand could lose its status as the world's second largest rice exporter to Vietnam, following India.

Thai rice is dropping in quality and pricing against the others.

Thailand needs to hustle and expand its rice market: South America, Africa aside from South America, Russia?

Long a problem with Thailand rice production has been cost of production. The Thai governments over a decade has subsidized rice production costs but never instituted permanent production efficiencies, ie., automation, more equipment handling.

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With the ridiculous high thai baht im not surprised they priced themselves out of the market.

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