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Bangkok Post
a day ago
- Business
- Bangkok Post
Rice exporters target new Asian markets
The Commerce Ministry has announced a plan to increase rice exports to China, Bangladesh, Saudi Arabia, Japan and Hong Kong. Commerce Minister Jatuporn Buruspat said the ministry had a meeting with the Thai Rice Exporters Association to discuss the rice export outlook in the latter half of the year. He said he directed the Department of Foreign Trade (DFT) to engage with Chinese officials to accelerate the export of 280,000 tonnes of remaining rice under a government-to-government agreement. The ministry is also focusing on increasing sales in key markets such as Japan, Saudi Arabia and Bangladesh, which are significant purchasers of white and parboiled rice, alongside Hong Kong, a growing market for Thai jasmine rice. Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said this year is a challenging one because of a global rice glut and a decline in demand. Indonesia, which imported 4 million tonnes last year, is projected to purchase a small amount of rice this year. Meanwhile, rice prices have plummeted to 10.50 baht per kilogramme, down from 19-20 baht. "Our competitors have improved rice quality, which has narrowed the gap in quality between Thai rice and their products. If Thai rice continues to be priced higher, buyers may turn to alternatives," said Mr Chookiat. "We must intensify our marketing strategies and promotional efforts, particularly in high-potential markets such as China and the Middle East, while also diversifying our offerings, with soft-textured rice increasingly preferred in Asia." Charoen Laothamatas, president of the association, suggested the government maintain a stable and relatively weak currency at 33-34 baht per US dollar to bolster competitiveness. Exchange rate fluctuation can influence the market decisions of exporters and importers, he said. Mr Charoen urged the government to expedite market access for Thai rice in Saudi Arabia, where hard rice is used for workers in labour camps, as well as advocate for increased export quotas to Japan. He said Iraq is another potential market for Thai rice. Thailand exported 3.73 million tonnes of rice worth 75.6 billion baht in the first half of the year, up 27.3% by volume and 36.5% in value. Roughly 7.5 million tonnes of rice are expected to be exported this year, according to the DFT.
Bangkok Post
01-07-2025
- Business
- Bangkok Post
Problems pile up for beleaguered cabinet
The private sector is urging the new cabinet to urgently address economic and agricultural challenges. Poj Aramwattananont, chairman of the Thai Chamber of Commerce and the Thai Board of Trade, said the new cabinet must tackle pressing issues related to the economy, society and security. "They must dedicate their efforts to addressing economic challenges and export concerns, especially given the uncertainty surrounding the outcome of tariff negotiations with the US," he said. Mr Poj said he expects the conflict between Thailand and Cambodia to eventually be resolved, allowing for trade relations to normalise and border security to return. Another concern is the decline in agricultural product prices, as he said the government should work to lower production costs and enhance farming productivity. Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the agricultural sector should increase its investment in R&D, particularly in crop variety innovation. He said he was disappointed that previous administrations simply proposed the same policies focusing on financial aid for farmers, while failing to introduce any groundbreaking strategies, which has left the agricultural sector stagnant. In addition, Mr Chookiat said he hopes the new commerce minister will inspire civil servants to take a more proactive approach for exports. To enhance rice trading amid challenging conditions, he called for increased marketing and promotion of Thai rice, as export prices are not considerably higher than those of competitors. For instance, Thai rice is priced at US$380 per tonne, while Vietnam's is at $390 and India's at $375. Visit Limlurcha, president of the Future Food Trade Association of Thailand, said the new cabinet needs time to prove itself, with the younger ministers hopefully offering fresh ideas. Mr Visit said he expects the new commerce minister to expedite efforts to increase exports in the latter part of the year. "The private sector is ready to collaborate with the government and the new commerce minister," he said. "The minister must quickly engage with pressing issues, as there's no time for a honeymoon period." Sorathep Rojpotjanaruch, head of the Restaurant Business Club, said while restaurateurs face rising raw material costs, there has been a decline in agricultural production at farms. He urged the commerce minister to use market mechanisms and resolve the unusual price mismatches along the supply chain. In addition, Mr Sorathep called upon the finance minister to establish a dedicated taskforce to tackle the sluggish economy, highlighting the absence of such a team. He advocated for the revival of the "Khon La Khrueng" (half-half) scheme, which provides a 50% co-payment subsidy, which should benefit small vendors in the industry. Mr Sorathep also called for the government to introduce a tax rebate scheme for individuals dining at registered value-added tax restaurants, allowing them to use receipts for tax rebates. He said businesses can qualify for this scheme to help reduce corporate taxes. The sluggish economy has also affected operators in the creative industry, according to the Publishers and Booksellers Association of Thailand (Pubat). Theerapat Charoensuk, a member of Pubat's executive committee, said the government must improve the country's economy to better support the creative sector, particularly the book industry, which is struggling due to reduced consumer purchasing power. Although the government has initiated support for creative industries through its soft power policy, he said a strong economy is vital to support the growth of the creative sector.
The Star
28-04-2025
- Business
- The Star
Thai rice exports in 2025 struggling, downward target revision ahead
BANGKOK: Thai rice exports in the first quarter of 2025 totaled 2.1 million tonnes, a decrease of about 30 per cent. Following this sharp decline, there are plans to revise the 2025 export target downward. Thailand's rice exports in 2024 reached 9.95 million tonnes, a 13 per cent increase and the highest in six years since 2018. The value of exports was US$6.434 billion, up 27 per cent, driven by higher global demand and India's suspension of rice exports, benefiting Thailand's export growth. However, in 2025, Thailand's rice exports are expected to decline compared to 2024 due to various factors, including the trade war from Trump's tariff policies, India's resumption of rice exports, a stronger baht, and higher rice prices compared to competitors. The Ministry of Commerce and the Thai Rice Exporters Association have set an export target of 7.5 million tonnes for 2025. Rice exports from Thailand have significantly dropped, with the first quarter showing a 30 per cent decrease in exports. Chookiat Ophaswongse,Honorary President of the Thai Rice Exporters Association, revealed that in the first quarter of 2025, Thailand exported 2.1 million tonnes of rice, a 30% per cent decrease compared to the same period last year. This decline is largely due to a 53 per cent drop in 15 per cent white rice exports, as India resumed rice exports, and major importers like the Philippines have not yet made significant purchases. Last year, the Philippines imported four million tonnes, but this year is expected to only import one million tonnes. Furthermore, Thailand faces competition from India and Vietnam, whose rice prices are lower. Specifically, India's rice is priced US$40 cheaper per ton than Thailand's, prompting several countries, such as South Africa, Malaysia and the Philippines, to turn to India instead of Thailand. For the direction of Thai rice exports in Q2 of 2025, Chookiat estimates that the overall situation will remain quiet, with export numbers expected to be similar to the first quarter. Exporters are concerned that if the US increases import tariffs on Thai rice to 20-25 per cent or even 36 per cent, the price of Thai jasmine rice could rise to US$1,200-1,300 per tonne, making competition more difficult. According to Charoen Lertthammasathit, President of the Thai Rice Exporters Association, exporters are not only concerned about the potential increase in US import tariffs but also about the transportation costs to the US. This is due to President Trump's announcement of a new tax on goods transported by ships built in China, which will take effect in October. Since China is a major hub for shipping, accounting for 80 per cent of global shipping production, this will have worldwide implications. 'If this policy is enforced, transportation costs will rise by an additional US$6 per tonne. Currently, Thai jasmine rice is exported to the US at US$1,000 per ton with a ten per cent tariff. If transportation costs are added, it will increase to US$1,006. If import tariffs are raised further, the price of Thai jasmine rice will become too expensive, and competition will be even more difficult. With Trump 2.0, global trade and exports will change significantly, and both the government and private sector need to be prepared to face these challenges,' Charoen said. Nevertheless, the Ministry of Commerce has been accelerating efforts to negotiate rice sales to importers. Recently, the Department of Foreign Trade organised a mission to sell rice in South Africa, securing 400,000 tonnes. The department will continue to target new markets and, this year, it will host the 10th Thailand Rice Convention 2025 (TRC 2025) on May 26, 2025, with expectations of increasing Thai rice sales. Arada Fuangtong, Director-General of the Department of Foreign Trade, stated that the TRC 2025 event this year will attract over 500 participants from both domestic and international sectors. These include government representatives, importers, exporters, relevant agencies, media, farmers and agricultural professionals. The event will feature key activities such as panel discussions, lectures, exhibitions to promote Thai rice, quality checks and certifications for Thai jasmine rice (Green Label), rice variety displays, rice tastings, and cooking demonstrations using Thai rice. There will also be presentations on the sustainability of the Thai rice industry in line with the event's theme. "During the conference, business negotiations between importers and exporters will take place, with an expected value of over 100,000 tonnes or approximately two billion baht in orders. Additionally, discussions with key traders to expand the Thai rice market, particularly in Africa and the Middle East, are planned," Arada noted. However, the latest figures for Thai rice exports from January 1 to April 18, 2025, show a decrease of 19.31 per cent, with exports totaling 2.477 million tonnes. This decline is attributed to India's return to rice exports and favourable weather conditions in several countries, resulting in higher overall production. Additionally, importing countries are reducing their rice imports. Poonpong Naiyanapakorn, Director of the Trade Policy and Strategy Office (TPSO), explained that rice exports in 2023-2024 performed well due to the impact of hot weather and the El Niño phenomenon on many rice-producing countries, which reduced their yields. Additionally, India had suspended rice exports, allowing Thailand to increase its market share. However, in the second half of 2024, India resumed rice exports, leading to a decrease in Thai exports, as it lost market share to India. Furthermore, Thai rice prices remain higher than those of competing countries, and yields per rai are lower. Since November 2024, Thai rice exports have steadily decreased, with a 23.4 per cent drop in March. Therefore, all relevant parties need to urgently address these issues to restore Thai rice exports to previous levels. Given the overall export situation from late 2024 to March 2025, it appears that this year's rice exports will not perform as well as last year's. There is a possibility that the Ministry of Commerce and rice exporters may revise their export target downward. Additionally, Thailand is at risk of losing its position as the world's second-largest rice exporter, a title it held in 2024, to Vietnam if these issues are not addressed effectively. - The Nation/ANN
Yomiuri Shimbun
23-04-2025
- Business
- Yomiuri Shimbun
Trump Tariffs Threaten to Pile More Pain on Thailand's Rice Sector
Reuters orkers load milled rice into a sack before distribution to exporters at a rice mill, as Thai rice farmers face pressure following the imposition of tariffs, which are currently paused, by U.S. President Donald Trump, in Nakhon Pathom province, Thailand, April 18, 2025. NAKHON PATHOM, Thailand, April 23 (Reuters) – Thai farmer Daeng Donsingha was already worried for her family of nine when rice prices in the world's second-largest exporter of the staple crashed this year after India resumed exports. Now, she's also fretting over the tariffs unleashed by U.S. President Donald Trump, which could slash demand for Thai rice in its most valuable foreign market and create turmoil in an export industry worth billions of dollars. 'The problem is that the price of rice is very low, while other costs such as fertilisers and farmland rent is higher,' the 70-year-old farmer said, after selling her harvest at a rice mill in central Thailand. 'I'm losing money.' Thailand is among Southeast Asian nations hardest hit by Trump's proposed measures, facing a 36% tariff on goods unless ongoing negotiations are successful before the U.S president's moratorium on the tariffs ends in July. 'If the U.S. imposes the tariff, our jasmine rice will be too expensive to compete,' said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. Last year, Thailand shipped 849,000 metric tones of rice to the United States, mainly of its most expensive fragrant jasmine variety, worth 28.03 billion baht ($735 million), according to the association. In all, Thailand exported 9.94 million tons of rice in 2024, worth 225.65 billion baht ($6.82 billion), with the U.S. as its third-largest market by volume, but most lucrative. Potential U.S. tariffs would stall exports and hand the advantage to Thailand's main regional competitors, like Vietnam, where prices are significantly lower, said Chookiat, whose association is targeting exports of 7.5 million tons this year. 'From $1,000 per ton, the price would rise to $1,400 to $1,500,' he said. 'Importers will shift to Vietnamese jasmine rice, which is only $580 per tonne.' Rice from Vietnam is cheaper because production costs are lower, farmers grow different varieties of the crop and bring in multiple harvests. 'WON'T SURVIVE' Farmers in Thailand, Southeast Asia's second-largest economy, have already been on edge because of a 30% drop in domestic prices after India resumed exports in September. The country accounted for 40% of world rice exports in 2022 before the ban was introduced. Analysts say there is no room for Thailand to cut prices to compete. 'Our production costs are high, while our yield is low,' said Somporn Isvilanonda, an independent agricultural economist. 'If we dump prices, farmers won't survive.' The industry and farmers are pinning their hopes on negotiations between a Thai delegation led by Finance Minister Pichai Chunhavajira and the United States. Rice shipments, however, are already sliding. Overall exports fell 30% in the first quarter as countries delayed buying decisions and India's return boosted supply, according to the exporters association, forecasting a similar decline over the next three months. The concessions Thailand is proposing to counter Trump, including bringing tariffs of U.S corn down from 73% to zero, would also hurt Thai farmers, according to industry groups. A flood of cheap imported corn could further depress prices of broken rice and rice bran, which are extracted during rice milling and used in animal feed, said Banjong Tangchitwattanakul, President of the Rice Millers Association. On April 8, four farm groups, including rice millers, petitioned the government to block imports of U.S. corn and soybean meal, arguing they would squeeze prices of domestic crops for animal feed, according to a copy of the letter seen by Reuters. The government has pledged that any concession it makes in negotiations with the United States will not undermine domestic industries. But for farmers like Daeng, decisions made halfway across the world could jeopardise her livelihood. 'My children have been following the news,' she said, 'They were telling me that 'we won't be able to survive, mum, if things go ahead like this.''
The Sun
23-04-2025
- Business
- The Sun
Trump Tariffs Could Deepen Crisis in Thailand's Rice Sector
NAKHON PATHOM: Thai farmer Daeng Donsingha was already worried for her family of nine when rice prices in the world's second-largest exporter of the staple crashed this year after India resumed exports. Now, she's also fretting over the tariffs unleashed by U.S. President Donald Trump, which could slash demand for Thai rice in its most valuable foreign market and create turmoil in an export industry worth billions of dollars. 'The problem is that the price of rice is very low, while other costs such as fertilisers and farmland rent is higher,' the 70-year-old farmer said, after selling her harvest at a rice mill in central Thailand. 'I'm losing money.' Thailand is among Southeast Asian nations hardest hit by Trump's proposed measures, facing a 36% tariff on goods unless ongoing negotiations are successful before the U.S president's moratorium on the tariffs ends in July. 'If the U.S. imposes the tariff, our jasmine rice will be too expensive to compete,' said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. Last year, Thailand shipped 849,000 metric tones of rice to the United States, mainly of its most expensive fragrant jasmine variety, worth 28.03 billion baht ($735 million), according to the association. In all, Thailand exported 9.94 million tons of rice in 2024, worth 225.65 billion baht ($6.82 billion), with the U.S. as its third-largest market by volume, but most lucrative. Potential U.S. tariffs would stall exports and hand the advantage to Thailand's main regional competitors, like Vietnam, where prices are significantly lower, said Chookiat, whose association is targeting exports of 7.5 million tons this year. 'From $1,000 per ton, the price would rise to $1,400 to $1,500,' he said. 'Importers will shift to Vietnamese jasmine rice, which is only $580 per tonne.' Rice from Vietnam is cheaper because production costs are lower, farmers grow different varieties of the crop and bring in multiple harvests. 'Won't survive' Farmers in Thailand, Southeast Asia's second-largest economy, have already been on edge because of a 30% drop in domestic prices after India resumed exports in September. The country accounted for 40% of world rice exports in 2022 before the ban was introduced. Analysts say there is no room for Thailand to cut prices to compete. 'Our production costs are high, while our yield is low,' said Somporn Isvilanonda, an independent agricultural economist. 'If we dump prices, farmers won't survive.' The industry and farmers are pinning their hopes on negotiations between a Thai delegation led by Finance Minister Pichai Chunhavajira and the United States. Rice shipments, however, are already sliding. Overall exports fell 30% in the first quarter as countries delayed buying decisions and India's return boosted supply, according to the exporters association, forecasting a similar decline over the next three months. The concessions Thailand is proposing to counter Trump, including bringing tariffs of U.S corn down from 73% to zero, would also hurt Thai farmers, according to industry groups. A flood of cheap imported corn could further depress prices of broken rice and rice bran, which are extracted during rice milling and used in animal feed, said Banjong Tangchitwattanakul, President of the Rice Millers Association. On April 8, four farm groups, including rice millers, petitioned the government to block imports of U.S. corn and soybean meal, arguing they would squeeze prices of domestic crops for animal feed, according to a copy of the letter seen by Reuters. The government has pledged that any concession it makes in negotiations with the United States will not undermine domestic industries. But for farmers like Daeng, decisions made halfway across the world could jeopardise her livelihood. 'My children have been following the news,' she said, 'They were telling me that 'we won't be able to survive, mum, if things go ahead like this.''
