Bangkok: Keep an eye on the situation in the Middle East; it's impacting costs and transportation, causing rice importers to delay orders. The Department of International Trade reveals that the situation in the Middle East is beginning to affect global shipping costs and transportation systems, leading to higher freight rates, insurance premiums, and energy prices. Some importers are delaying orders to assess the situation. Meanwhile, overall Thai rice exports in the first two months of 2026 totaled 1.15 million tons, a decrease of 4.16% from the previous year, primarily due to the surplus global rice supply.
According to Thai News Agency, Ms. Arada Fuengthong, Director-General of the Department of International Trade, revealed that the tense situation in the Middle East has significantly impacted global shipping chains, with transportation costs continuously increasing, including freight rates, insurance, and energy prices.
Meanwhile, key shipping routes are restricted and delayed due to geopolitical factors, resulting in longer transit times and causing some importers to postpone orders while they assess the situation. This is likely to affect the volume of Thai rice exports in the coming period.
Thai rice exports during January-February 2026 totaled 1.153 million tons, a decrease of 4.16%, and were valued at US$651 million (approximately 20.2 billion baht), a decrease of 15.45% compared to the same period of the previous year. The main factors contributing to this decline are the high supply of rice in the global market, leading to intense price competition, coupled with import restrictions imposed by major importing countries such as Indonesia and the Philippines, and the strong Thai baht against competing exporting currencies.
Although overall exports have slowed down, signs of recovery are beginning to appear in some markets, particularly for parboiled rice, which saw an increase of over 40% in export volume compared to the same period last year. This reflects increased demand in African markets to enhance food security amidst global uncertainty. Meanwhile, exports to key markets such as South Africa, Malaysia, and the Philippines are showing growth trends.
The Director-General of the Department of International Trade added that the department continues to closely monitor the situation in the Middle East, as it is a strategic area along important global shipping routes, particularly the Strait of Hormuz and the Red Sea, which affects Thai rice exports to key markets such as Iraq.
Regarding strategies to mitigate risks to Thai rice exports, the Department is proactively pursuing measures such as maintaining key markets while expanding into new, potentially lucrative markets; promoting high-quality and value-added rice; and negotiating government-to-government agreements with China through COFCO to ensure the delivery of the remaining 500,000 tons of rice as targeted. Furthermore, the department is utilizing international trade fairs and forums to provide opportunities for Thai businesses to engage in trade negotiations, diversifying reliance on a single market, and maintaining the role of "Thai rice" as a key agricultural product of the country.