Bangkok: "Charoen" has voiced concerns about possible rice export price cuts by India due to a significant overproduction, which could impact Thai rice exports. The president of the Thai Rice Exporters Association has highlighted the challenges posed by the increased global supply and decreased demand, stemming from India's record-high rice production, the highest in five decades. He urged the Bank of Thailand to address the appreciating baht, which has affected export pricing.
According to Thai News Agency, Pol. Lt. Col. Charoen Laothamatas, President of the Thai Rice Exporters Association, discussed the state of Thai rice exports for 2025 at the 'Thailand Rice Convention 2025' conference organized by the Department of Foreign Trade, Ministry of Commerce. It is projected that Thailand will export 7.5 million tons of rice this year, with 2.5-2.6 million tons already exported in the first four months. The current export landscape faces pressure from the substantial rise in global rice production, particularly due to India's resurgence in rice exports, with 140 million tons of milled rice produced this year, surpassing China.
Thailand's rice production remains stable due to sufficient water resources for second-season rice cultivation. However, a decline in global demand presents a challenge, as exemplified by Indonesia's reduced imports compared to last year's 4-5 tons. This drop in demand, coupled with an increased supply, poses a significant obstacle for rice exports.
The future course of India's export policies is awaited with anticipation, as the country grapples with rice stocks thrice the normal level, approximately 60 million tons, necessitating their release into the global market. Exporters fear uncontrolled releases could impact global rice prices, including Thailand's market.
The US import tax situation is not seen as a major concern for Thailand, as the country primarily exports jasmine rice to the US. This scenario could potentially benefit Thailand if countries previously importing from the US turn to Thailand or other Asian countries due to increased US import taxes.
Pol. Lt. Col. Charoen noted the current low rice prices, with paddy rice selling at around 7,000 baht per ton, prompting some farmers to consider shifting their crop production to jasmine or Pathum rice for the second-season planting in August.
Additionally, the fluctuating exchange rate of the baht compared to competitors like Vietnam and India poses a concern, impacting rice pricing and competitiveness. The Bank of Thailand has been called upon to stabilize the baht to support the export sector.