Prices remain highly volatile

NEWSPAPER SECTION: Business, WRITER: Wichit Chantanusornsiri

The government has unveiled a “New Rice Economy” initiative aimed at elevating Thai rice to the premium segment in the global market.

Speaking after chairing a meeting of the National Rice Policy and Management Committee on Wednesday, Prime Minister Anutin Charnvirakul said the meeting approved in principle the development of measures under the concept “Thai Rice for the Future Economy” (New Rice Economy).

The short-term measures focus on managing the surplus of white rice, including a paddy absorption scheme for the 2025/2026 production year.

The target is 3 million tonnes of paddy, with a budget of 1.68 billion baht to absorb excess supply and release it in line with market conditions.

There are also plans to process the paddy into packaged rice for sale to agencies with real demand, such as the Department of Corrections, military units and other state agencies.

The meeting also endorsed long-term measures to improve the production structure, particularly studying the conversion of some off-season rice-growing areas to crops better suited to local conditions and market demand.

The proposed framework covers 1 million rai, with relevant agencies instructed to thoroughly review feasibility before implementation.

The plan encourages farmers to upgrade quality by shifting to premium rice varieties to increase product value, ensure market demand and raise consumer awareness of the distinctiveness of Thai rice, such as hom mali rice, geographical indication rice and other speciality varieties.

The initiative targets 200 farmer groups and has a budget of 120 million baht.

The plan also calls for developing rice seeds that match market demand, as the central region still lacks diverse high-quality varieties to replace hard-texture rice. The Rice Department was tasked with further study of this issue.

Mr Anutin said the global rice market remains highly volatile, and during the recent official visit to China, President Xi Jinping informed His Majesty King Maha Vajiralongkorn that the mainland plans to purchase 500,000 tonnes of Thai rice, a positive signal for Thai rice prices.

In addition, Thailand agreed to sell 100,000 tonnes of rice and food products to Singapore in advance, he said.

The rice policy meeting acknowledged the global rice report for 2025/2026, with worldwide rice production plus beginning stocks (end of 2024/2025 stocks) totalling 729 million tonnes of milled rice.

Global consumption and trade demand tallied 604 million tonnes of milled rice, resulting in a surplus of 125 million tonnes, tamping down global rice prices.

As for Thailand, the total rice supply for 2025/2026 is projected at 27.3 million tonnes of milled rice, while domestic consumption, exports, stockpiling and seed use amount to 23.5 million tonnes.

Published Date: November 20, 2025