Thai Rice Exporters Association points out that only the high fees for documentation prevent farmers and SMEs from exporting their rice

The Thai Rice Exporters Association (TREA) criticised the government’s policy to boost rice exports by allowing all farmers and SME traders to export products by themselves as unattainable.

Prime Minister Paetongtarn Shinawatra announced the policy on Thursday during an event highlighting the government’s achievements in the past 90 days, titled “2025 Empowering Thais: A Real Possibility.”

In her keynote speech, Paetongtarn said the government aims to break up the monopoly on rice exports and allow farmers and rice traders classified as small and medium enterprises to export their rice freely all over the world.

Responding to this, TREA honorary president Chukiat Opaswong pointed out that there are currently no restrictions on farmers and SMEs should they wish to export their own rice.

However, exporting rice overseas requires permits and substantial documentation fees, while exporters must also find the market themselves, he said.

“The government is just selling a dream,” he said. “It is doubtful that farmers and SMEs can handle all these tasks and expenses by themselves.”

Chukiat went on to clarify the PM’s statement that the government will abolish the rules that rice exporters must have a warehouse to stock at least 500 tonnes of rice in a bid to allow small operators to also export and therefore end the monopoly by large exporters.

“The 500 tonnes requirement is there just to prevent supply shortage. It has nothing to do with large companies monopolising rice exports,” he pointed out.

“Exporting rice is a free trade and anyone can do it if they are capable. There are over a thousand millers and exporters in Thailand. If the requirement were to be gone it would not make any difference as the competition is still there,” said Chukiat.

Thailand exported 8.35 million tonnes of rice between January and October this year, an increase of 20% over the same period last year, according to Commerce Ministry’s data.

The value of exported rice in those 10 months also rose 40% year-on-year to US$5.41 billion or 191.03 billion baht.

White rice is responsible for 62% of the total exports or 5.18 million tonnes, followed by jasmine rice at 1.37 million tonnes, steamed rice at 1.01 million tonnes, fragrant rice at 0.54 million tonnes, sticky rice at 0.23 million tonnes and brown rice at 0.02 million tonnes.

Published Date: December 13, 2024