NEWSPAPER SECTION: Business, WRITER: Phusadee Arunmas

As Thai rice prices have hit a 20-year low, more than 90% of rice mills are facing losses while farmers are struggling with debt repayment.

Banjong Tangjitwattanakul, president of the Thai Rice Mills Association, highlighted the sharp decline in paddy and white rice prices, which have reached a 20-year low.

Prices have plummeted by 50% from last year, when white rice was selling at 10,000-12,000 baht a tonne.

The price of 15% moisture paddy has fallen to 6,200 baht a tonne, while the price of fresh paddy with 25% moisture is down to 5,000 baht a tonne.

The downturn has also caused price reductions for by-products, with the price of rice bran decreasing by 40% and that of broken rice falling by 35-40%, resulting in more than 90% of rice mills experiencing a drop in revenue and significant losses.

He said many mills previously invested in rice at higher prices through a government programme that offered interest subsidies for stockpiling, with 5-6 million tonnes of paddy left in storage. Supply has outpaced demand, leading to sharp price declines.

Mr Banjong called on the government to reconsider the grain import policy for corn, wheat and barley, which he said exerts additional pressure on domestic rice prices.

These imports are affecting the prices of related by-products, further exacerbating the decline in the rice market, he said.

Pramote Charoensilp, president of the Thai Agriculturist Association, said the Commerce Ministry has to intervene to stabilise rice prices and address rising production costs, such as fertilisers and pesticides. Farmers are facing significant financial losses this year, and many may struggle to meet debt repayments.

The Crops Grower and Merchandise Association called on the government to revoke the decision allowing the import of genetically modified organism feed corn with a quota of 1 million tonnes and an import tax exemption.

Terdsak Lapjitkusol, president of the association, said Thailand has an adequate supply of local raw materials that provide energy, and it does not need to rely on wheat or other substitutes.

Feed corn is recognised as a key source of energy, noted the association.

For 2024, Thailand was projected to have had a domestic surplus in several energy grains, including 4.56 million tonnes of corn, 1.96 million tonnes of tapioca, 2.86 million tonnes of rice bran, and 3.72 million tonnes of broken rice.

The association said Thailand has 13.1 million tonnes of local raw materials that are sources of energy for livestock.

The country’s feed demand was estimated at 21.1 million tonnes in 2024, with energy grains making up 60% of total raw materials, equivalent to 12.7 million tonnes.

The association urged the government to encourage local feed mills to source domestic raw materials and establish clear guidelines for purchasing those materials, aiming to enhance trade liquidity.

The group requested the government postpone the import of energy grains, with effective management of domestic supplies to address the current surplus.

Published Date: November 15, 2025