Thailand has dropped to third place among the world’s largest rice exporters

Rice exports from Thailand have fallen sharply this year due to fierce competition and currency issues that have hurt price competitiveness, according to a report by the Foreign Exchange Service (FAS) of the United States Department of Agriculture. According to the report dated September 3, as of August 17, Thai rice exports amounted to 3.87 million tons, down 26% compared to 5.29 million tons in the same period last year. As a result, Thailand fell from second to third place among the world’s largest rice exporters, losing to India and Vietnam.

India’s return to the market with aggressive prices and weakening demand from key buyers, including Indonesia and the Philippines, were the main reasons for the decline in Thai rice exports, the FAS said. India, which has resumed exports, is offering significantly lower prices, which has increased pressure on Thai exporters.

The Thai baht’s volatility has further undermined price competitiveness, FAS said. In addition, industry sources said tariff changes in the US have added price volatility to the premium jasmine rice segment. This makes it difficult for Thai rice to position itself in international markets, especially for premium varieties.

Farmers’ incomes are also a concern, with rice prices remaining at historically low levels in August. “These domestic rice prices remain low, creating financial difficulties for farmers, especially those growing non-premium varieties, due to falling export prices, high production costs and reduced export demand,” the FAS report said.

On August 19, the Thai government responded by introducing measures to stabilize rice prices in order to reduce farmers’ losses and stabilize production for the 2025-26 marketing year. The total budget for these measures is 37.9 billion baht ($1.2 billion). 7.3 billion baht ($226 million) has been allocated to stabilize rice prices for the 2024-25 off-season harvest. Qualified households will receive 1,000 baht per rai ($4.9 per hectare), but not more than 10,000 baht ($309) per household, covering more than 5.49 million registered rice farms.

Tags: Thailand, rice