NEWSPAPER SECTION: Business

WRITER: Phusadee Arunmas

The Commerce Ministry set a rice export target of 7.5 million metric tonnes for 2025, declining from an estimated 10 million metric tonnes this year.

Arada Fuangtong, director-general of the Department of Foreign Trade, said for the first 11 months this year, rice exports rose by 14% year-on-year to 9.27 million metric tonnes. The volume is expected to reach 10 million metric tonnes with value of at least US$6 billion.

This growth is driven by sustained demand from importers to meet year-end consumption needs for Christmas, New Year and extending into the Chinese New Year. Thailand’s rice production is sufficient to meet global market demand, and the country’s strong export capacity ensures consistent delivery to importers.

“This year is considered a golden year for rice exports, with export volumes potentially reaching 10 million metric tonnes,” she said.

In addition to the increase in export volume, the average export price of rice (free on board price) for the first 10 months this year rose year-on-year.

On average, prices of Thai Hom Mali rice increased by 7.59%, Pathum Thani rice by 24.6%, white rice by 11.7%, parboiled rice by 10.9% and sticky rice by 0.62%.

Major export markets include Indonesia, Iraq, South Africa, the US and the Philippines.

Mrs Arada said the ministry set a lower shipment target next year because of India’s resumption of white rice exports.

India has significant rice production capacity and high stock levels following its temporary export ban.

In addition, global rice production is expected to increase based on easing drought conditions and improved water availability for cultivation, which should intensify competition in the global rice market.

For next year, the Department of Foreign Trade plans to promote rice exports by strengthening relationships and organising promotional activities for Thai rice in key trading partner countries.

For example, urgent market expansion discussions are planned with South Africa, where rice export volumes dropped by 12% this year. In the US, efforts focus on expanding the market for Hom Mali rice among Hispanic communities, who increasingly prefer Thai jasmine rice.

Other target markets include Canada and the Philippines, with the department continuing its government-to-government policies, while expediting rice trade negotiations with Indonesia and China.

In the first 10 months this year Thailand exported 8.35 million metric tonnes of rice, a 20% increase year-on-year. The export value was 191 billion baht, a 40% uptick year-on-year.

White rice was the top export, accounting for 5.18 million metric tonnes or 62% of total rice exports. This was followed by Thai Hom Mali rice at 1.37 million metric tonnes, parboiled rice 1.01 million metric tonnes, Thai fragrant rice 0.54 million metric tonnes, glutinous rice 0.23 million metric tonnes and brown rice 0.02 million metric tonnes.

Published Date: December 4, 2024