File photo for reference only

 

Thailand's rice industry is experiencing severe challenges, with decreasing yields, rising production costs, and falling domestic and export prices. New data highlights a significant decline in global competitiveness, prompting concerns about the industry's sustainability. Analysts warn that without urgent intervention, Thailand's position in the global rice market could significantly weaken.

 

Over the past 14 years, Thailand's rice policy, under successive administrations, has been dominated by populist measures like pledging schemes and income guarantees. These have cost the country between 1.2 and 1.3 trillion baht, without promoting technological advancement or competitiveness. In contrast, countries like Vietnam and India have modernized their agricultural practices, improving seed quality and reducing costs, thereby enhancing their export capabilities.

 

The collapse of rice prices poses a substantial threat to farmers, with common white paddy selling below production cost. Thai farmers face average production costs of 7,200–7,500 baht per tonne, significantly higher than Vietnam and India. The country's yields also lag behind these competitors, with the lowest in ASEAN at 370–600 kg per rai. This situation endangers Thai farmers' ability to earn profits, contributing to economic stagnation in rural areas.

 

Assoc Prof Somporn Isvilanonda advocates for comprehensive reform, suggesting zoning, mixed farming, and government-funded R&D. He emphasizes developing high-yield rice varieties and low-carbon rice production to boost competitiveness. Without such reforms, Thailand could face a continued decline in its global rice market share, risking increased economic hardship for rural communities.

 

Assoc Prof Dr. Aat Pisanwanich highlights the need for Thailand to adapt to the global shift towards soft-texture rice varieties. He notes the disparity between Thailand's limited development of these varieties compared to Vietnam's extensive efforts. Aat argues for a strategic overhaul of Thailand's rice policy to align it more closely with both farmer needs and market demands.

 

Looking forward, experts stress the urgency of policy reforms. Embracing modern agricultural techniques and shifting focus to high-yield, high-income rice varieties is crucial. By examining successful models from competing countries like Vietnam, Thailand could develop strategies to enhance its position in the global rice market, securing economic stability for its farming sector, reported The Nation.

 

Key Takeaways

• Thailand's rice industry struggles with low yields and high costs.
• Competing nations like Vietnam improve seed quality, driving growth.
• Experts call for reforms to avert deeper economic impacts.

 

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  Adapted by ASEAN Now from The Nation 2025-11-14

 

 

It are the not costs that are rising itis to blame to the manipulated too expensive THB.... and indeed a lack of investment in modern technology, because the conservative attitude...

This subject has come up over in the farming forum, more than once, the sense of opinion is ,that the rice fields soil is dead ,just not fertile, hence the low yields is all monoculture rice, and more rice,and rice being a cereal crop takes natural soil elements out of the soil, yes rice farmers use fertilizers,but it is the soil organic matter that is lacking,big time.

It can be overcome,like planting something like Sun hemp or mung being a legume, it would put something back in the soil , plant after a crop of rice, let it grow then plough it in ,that would help improve soil organic matter.

Would a rice farmer do that ,no ,no money to do it, afraid as it something new it would not work  they would say, as has been said a conservative attitude and they would lose even more money, needing to borrow even more to get by.

A lot has been said about investing in modern technology............like what? ,gone are the days of most of the work being done by hand, now most is done from a tractor seat, GPS AI, cannot see that helping Somchai, and his walk- behind tractor.

Grow an extra crop in a year , wife's law tried that back in the spring, they spent a fortune on fuel pumping water in to they rice fields, hot season no rain, and the price they got for they crop barely covered they costs.

What would help get better new rice verities not just the Jasmin rice, breed they own, or go to Vietnam get some of theirs, but againe too set in they ways change.

With farmers getting older, no one taking over ,the problem will only get worse.

23 minutes ago, kickstart said:

With farmers getting older, no one taking over ,the problem will only get worse.

This is already a big issue visible today. New inherited farms, many are declining, the new generation wants to live in the city, don't want to take care of the land, the pay in the city is good, another factor. 

Those living in the city will hire people to continue the work, and you know what happens when nobody is checking the work .

Can see Many palm and rubber farms abandoned , many are transferring to Durian ( the new gold rush).

 

I think i read that China's President Xi just said China would buy rice from Thailand. A bit like taking coal to Newscastle, but that's good I guess. Doesn't solve the bigger systemic issues though.

10 minutes ago, ronnie50 said:

I think i read that China's President Xi just said China would buy rice from Thailand. A bit like taking coal to Newscastle, but that's good I guess. Doesn't solve the bigger systemic issues though.

 

So why stick with just rice?

 

Why not soy beans or corn or some other crops in rotation.

15 hours ago, NoDisplayName said:

 

So why stick with just rice?

 

Why not soy beans or corn or some other crops in rotation.

First they need a market for soya beans

21 hours ago, snoop1130 said:

Thailand's position in the global rice market could significantly weaken.

Modernise or fail.

"Yingluk Subsidies" on the way?

They have a big problem coming, every "neighbour" is doing the same thing.

 

 

 

 

16 hours ago, brfsa2 said:

This is already a big issue visible today. New inherited farms, many are declining, the new generation wants to live in the city, don't want to take care of the land, the pay in the city is good, another factor. 

And the youth who no longer want to farm will sell to corporate interests who will buy the land, consolidate the farms, and lower the cost of production - and the price of rice - forcing other small farmers out of the market.  Wash, rinse, repeat until corporate interests own most of the farmland AND are the middle-men (rice buyers) and then manipulate the rices prices upwards.  I've seen it in the US.  The eventuality is corporate farms.  Unlike the US, it won't be Chinese owned corporate farms.

19 minutes ago, fondue zoo said:

They have a big problem coming, every "neighbour" is doing the same thing.

 

 

 

 

 

For reference Cambodia (Google)

 

Cambodia's rice industry is experiencing strong export growth, with a significant increase in revenue in the first nine months of 2025 and a target to boost premium rice exports. However, the sector faces challenges such as recent sharp drops in paddy prices for farmers, which some attribute to factors like falling domestic prices, oversupply, and issues with storage capacity and export stability despite high production volumes. The industry is also benefiting from government support, including investment in infrastructure and a focus on modernizing the value chain to boost productivity and exports. 

17 hours ago, kickstart said:

improve soil organic matter

 

This is the easiest part of the equation to solve. 

 

The problem is as you stated first: the soil is depleted from years of mono cropping and not leaving fields fallow.  If they could afford to ammend the soil with manure and other organic matter, leave it fallow for a year, then rotate crops, they could improve yields.   Chemical fertilizers cause all sorts of complications.  High nitrogen ferts cause rapid leaf growth which attracts pests, then you need insecticides to deal with them. They also acidify the soil, which, when out of the plants' required ph range, make certain nutirents unavailable (bio unavailable) to the crop. Nitrosomonas and nitrobacters in the soil are probably reduced, causing further problems. The green manures mentioned fix atmospheric nitrogen, but that isn't released back into the soil until the cover is plowed back into the soil and broken down.  

 

It's a complex problem and my background isn't in agriculture. Perhaps a more knowledgeable member can further enlighten us. 

I'd suggest a robust marketing campaign in Thailand's more affluent rice markets. 

 

Create Thai rice as a distinctive brand and have consumers demand it by name. Attach a cachet and status to Thai rice, combined with yarns that elevate it above competitors' crops.  The claims need to be vague enough that they can't easily (or at all) be verified. Use nebulous terms, like politicians and the vitamin/herbal industries use. 

 

The key is product differentiation, not just producing more rice at a lower cost. 

17 hours ago, ronnie50 said:

I think i read that China's President Xi just said China would buy rice from Thailand. A bit like taking coal to Newscastle, but that's good I guess.

 

I had to wonder if China ruined its rice fields and has worse problems that Thailand.

There was a report a couple of days ago that the price of rice to the farmer now is the same as it was in 2007. Not good to be a rice farmer.

I asked the wife is the retail price of rice has dropped as well. No, she said.

At least they can rejoice that they have plenty of water for another crop

After eating that magical indian basmati rice, who can eat anything else when it comes to rice. 

Thai rice farms have exhausted the land and the top soil, and you need chemicals and scrub burning to sideline letting land be fallow... which never happens now. Thai rice is just becoming uncompetitive when comparing it to their peers. People will vote with their wallets... as they always do.

6 hours ago, Aussie999 said:

First they need a market for soya beans

 

AI Assist says....

 

China is the largest purchaser of soybeans, accounting for a significant portion of global soybean imports. Historically, it has imported more soybeans than any other country, primarily sourcing from the United States.

 

China has stopped buying soybeans from the United States, which has significantly impacted U.S. farmers and the agricultural market. This shift is part of a longer trend where China is diversifying its suppliers, primarily turning to Brazil and Argentina for soybean imports.

22 hours ago, NoDisplayName said:

 

So why stick with just rice?

 

Why not soy beans or corn or some other crops in rotation.

A good question, the problem is the field, rice fields are designed to keep water in, you put in a crop like corn or soya, soon as the rains come, it will rot and die ,corn and soya do not like being sat in water, it can be overcome by very deep cultivation, allowing the water to drain out, cost of which would not be cheap, but then you what to plant rice, but then you cannot keep the water in ,a rice field is a rice field, unless it is a permeant change, you cannot mix crops.

With climate change will they be enough water to grow rice, you can grow what Thais call Khow -Rie, an almost dry land rice, but the odds of Thailand doing that are remote, just to set in they ways to change and they would never eat it as the flavor would be different, the idea would be good then you could  do your rotation of crops .

Someone on here a while ago found a Japanese farmer who used a sluice gate in his rice fields, letting in water in and out depending on the crop, that would work, could be done here, odds are it will not, but you can wish on.

23 hours ago, NoDisplayName said:

 

So why stick with just rice?

 

Why not soy beans or corn or some other crops in rotation.

Yes, the mono cropping is a problem, for sure. 

6 hours ago, davb said:

 

I had to wonder if China ruined its rice fields and has worse problems that Thailand.

I think it was a political gesture. China is courting Thailand (they hope away from U.S. influence). As for China's rice production/soil erosion, maybe they have. Then again, China is the world's biggest producer of rice almost entirely for national consumption.

Thailand priced themselves out because of the thai baht.Vietnam took over as the second biggest ride exporter after India.And as usual Thailand blame on other reasons.

22 hours ago, Sigmund said:

After eating that magical indian basmati rice, who can eat anything else when it comes to rice. 

Wow, a rice connoisseur. Do you eat it on its own or have something favourable with it?

Can't have the r̶i̶c̶e̶-c̶a̶k̶e̶ strong baht and e̶a̶t̶ sell it (the rice-cake)... 😆