Farmers harvest rice in a field in Chainat province, Thailand, Aug. 31, 2023. Photo by Reuters
Thailand’s rice exports are projected to fall to 7 million tonnes in 2026 from about 8 million this year as a stronger baht makes it harder to compete with Indian supply.
Speaking at a recent press conference, Arada Fuangtong, head of the Ministry of Commerce’s Department of Foreign Trade, said the Thai currency is currently 10-20% stronger than those of competitors.
If the baht continues to strengthen, it will pose a major challenge for Thai agricultural products, she added.
The official noted that a deal to sell 500,000 tonnes of rice to China is expected to continue.
Last month, Thailand also agreed to supply up to 100,000 tonnes of rice to Singapore over a five-year period. It is also looking to expand its export of white and parboiled rice to Iraq, Saudi Arabia and other countries in the Middle East and Africa.
Thailand also plans to seek opportunities in Germany, Switzerland and the U.S. for premium rice varieties under the Khaopraneat project, which promotes Thai rice as a cultural product with distinctive flavor, identity and value.
In 2025, rice shipments are forecast to reach 7.88-8 million tonnes, exceeding the target of 7.5 million tonnes thanks to strong year-end demand.
However, the volume would still be below the nearly 10 million tonnes exported in 2024, when Thailand was the world’s second-largest rice exporter after India, she stated.
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