By John Reidy

BANGKOK, THAILAND — Thailand’s rice exports have dropped off sharply this year amid intense competition and currency headwinds that have hurt price competitiveness, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

Thailand’s year-to-date rice exports as of Aug. 17 totaled 3.87 million tonnes, down 26% from 5.29 million tonnes during the same period a year ago, according to the Sept. 3 FAS report. As a result, Thailand has fallen from second to third among the world’s rice exporting countries behind India and Vietnam.

India’s return to the market with aggressive pricing and weakening demand from key buyers, including Indonesia and the Philippines, have been the primary drivers of the downturn in Thai rice exports, the FAS said.

The Thai baht’s fluctuation has further undermined price competitiveness, the FAS noted, while industry sources added that US tariff changes added price volatility to the premium jasmine rice segment.

Farm income also has become a concern as August farmgate prices for major paddy varieties reflected persistent downward pressure.

“These domestic paddy prices remain historically low, exposing farmers, especially those producing non-premium grades, to financial strain due to falling export prices, high production costs and declining export demand,” the FAS said.

On Aug. 19, Thailand’s government responded with paddy rice price stability measures to mitigate losses and stabilize production for marketing year 2025-26, providing a total budget of 37.9 billion baht ($1.2 billion). Measures for 2024-25 off-season paddy rice price stability were budgeted 7.3 billion baht ($226 million).Eligible households will receive 1,000 baht per rai ($4.9 per hectare), capped at 10,000 baht ($309) per household, covering more than 5.49 million registered rice farming households.

Published Date: September 9, 2025