Bangkok:Thai rice exports have encountered significant challenges, including competition from increased Indian rice production and the influx of Pakistani rice into the international market, as well as a decrease in exports to Iraq. Despite these hurdles, Thai rice has maintained a competitive edge with a selling price 21 percent higher than India's and 12 percent higher than Vietnam and Pakistan's.
According to Thai News Agency, the first nine months of the year saw Thailand exporting 4.99 million tons of rice, marking a 19.26% decrease. However, Thai rice commanded higher prices, contributing to a total export value of approximately 94.9 billion baht. The price for 5% white rice increased significantly from an average of US$335 to US$470 per ton, while jasmine rice prices exceeded US$1,035 per ton.
Mr. Poonpong Naiyanapakorn, Permanent Secretary of the Ministry of Commerce, highlighted that Thailand's rice production forecast for 2025/2026 anticipates a yield of 33.84 million tons of paddy rice, a 2.6% decrease from the previous season. The country's agricultural sector involves 7.7 million households, with 4.63 million engaged in rice cultivation across 61.18 million rai of land. The Northeast region accounts for the largest rice-growing area.
Significant growth in Thai rice exports has been observed in markets such as the Philippines and Malaysia, which imported 262% and 155% more Thai rice, respectively. The overall Asian market expanded by 13.25%, reaching 1.71 million tons. African markets, including the Democratic Republic of Congo and Mozambique, also showed growth, with increases of 63.81% and 2.2%, respectively.
Amid these market dynamics, Thailand's rice export targets for 2027 are expected to face similar challenges as in 2026, with an initial target of 7 million tons. The competitive landscape is intensified by high rice production and stock levels in India and Vietnam, and the entry of Pakistani rice later in the year. Additionally, exports to Iraq have declined due to Middle Eastern tensions, although some rice continues to reach Iraq via Turkey despite high transportation costs. Overall, these factors have led to an 88% decrease in Thai rice exports.