Rice production is expected to drop 5.87% in 2024, impacted by the El Nino weather phenomenon.

A worker carries a bag of milled rice at a mill in Suphan Buri province, about 65.2 miles (105 km) north of Bangkok March 11, 2013. To match Analysis THAILAND-RICE/ REUTERS/Chaiwat Subprasom

Thailand expects to export 7.5 million metric tons of rice in 2024, down 14.38% year-on-year, due to lower production and increased competition, the commerce ministry said on Thursday.

Rice production is expected to drop 5.87% in 2024, impacted by the El Nino weather phenomenon, the ministry said in a statement.

Rice exports from Thailand, the world’s second-largest shipper of the grain, “face competition and many challenges,” the ministry said, citing expected higher global supply and lower imports from trade partners.

Thai rice exports in January jumped, however, up about 44% year-on-year to 1.12 million metric tons, the ministry said, without giving details.

Indonesia may also buy less Thai rice than last year because of a large stockpile, while top rice exporter India could lift its export ban, the ministry said.

Thailand’s government in December said Indonesia was seeking to buy 2 million metric tons of Thai rice in 2024.

In 2023, Thailand’s rice exports rose 13.6% year-on-year to 8.76 million metric tons, beating a target of 8 million tons, with the value up 28.4% on the year, ministry said.

The rice exports last year accounted for 1.8% of Thailand’s total shipments in value terms. (Reporting by Orathai Sriring and Satawasin Staporncharnchai; Editing by Martin Petty)

Published Date: February 1, 2024