[Thailand's Climate] El Niño May Boost Thailand's Rice Exports

Thailand's Rice Exports Soar, Boosting the Thai Economy

Thailand’s Minister of Commerce, Jurin Laksanawisit, expects the country’s rice exports to exceed 80,000 metric tons this year, a trend driven by growing global demand as countries rush to stockpile rice to counter the effects of the El Niño phenomenon. Mr. Jurin noted that the expected increase in rice purchases by the Philippines—ranging from 20,000 to 30,000 metric tons—and Indonesia’s rush to buy rice in large quantities from Thailand and Vietnam are driving this export growth. He also mentioned that Iraq is expected to import approximately 10,000 metric tons of rice this year, a volume comparable to that of 2022.

In addition, as Vietnam is cutting back on rice exports to ensure its domestic stockpiles and shifting its focus to fruit and coffee cultivation, this has created opportunities for the Thai rice export market. At the same time, the weakness of the Thai baht has boosted the competitiveness of Thai rice exports. “Our rice export volume last year exceeded our target. Furthermore, crop prices performed well, particularly for fragrant rice, Pathum Thani fragrant rice, white rice, and glutinous rice—all four of which fetched prices higher than the government-guaranteed prices,” said Jurin Laksanawisit.

The Thai fruit trade has become another area of competition

In light of recent developments, Minister Jurin Laksanawisit has instructed the Department of Internal Trade and the provincial commerce offices in the southern region to work with provincial governors to inspect and monitor fruit markets. This follows reports of collusion, attempts to halt purchases, and price manipulation by merchants involving mangosteen and durian.

In addition, Mr. Jurin instructed the relevant departments to take strict legal measures against unethical traders in accordance with the “Trade Competition Act” and the “Prices of Goods and Services Act.”