Bangkok: The Ministry of Commerce is advancing efforts to raise rice prices, with plans to distribute over 8.5 million tons of domestic paddy rice through various channels in the latter half of 2025. The initiative includes utilizing rice markets, offering low-interest loans, and leveraging farmer granaries. Additionally, the ministry is focusing on expanding Thai rice exports to international markets to help farmers remain competitive globally.
According to Thai News Agency, Mr. Chatuporn Buruspat, Minister of Commerce, along with Deputy Minister Mr. Chantawit Tantasith, engaged in discussions with the Thai Rice Exporters Association. The meeting, which included Pol. Lt. Col. Charoen Laothamatas, President of the association, and private sector representatives, aimed to promote Thailand’s rice strategy and address export challenges amid global price competition, currency fluctuations, and reduced demand in key markets.
Mr. Chatuporn disclosed urgent measures to uplift domestic rice prices, directing the Department of Internal Trade to implement strategies like “paddy markets,” low-interest financing, and harnessing farmers’ granaries to manage harvest outputs. These strategies are projected to remove at least 8.5 million tons of rice from circulation, thus enhancing domestic purchasing power and easing price pressures.
Moreover, the “Green Flag Project” seeks to cut production costs for farmers. This includes revamping rice varieties, fertilizers, pesticides, and marketing systems to align with international market demands.
On the export front, the Department of Foreign Trade is accelerating efforts to open the rice market in China, with a focus on the remaining 280,000-ton quota. Participation in events like the China-ASEAN EXPO and CIIE aims to bolster market penetration. Additionally, the department is working to enhance exports to countries such as Japan, Saudi Arabia, Bangladesh, and Iraq, viewed as promising markets for white and parboiled rice, along with jasmine rice exports to Hong Kong.
Mr. Chukiat Opaswong, Honorary President of the Thai Rice Exporters Association, emphasized the year’s challenges, citing increased global rice supplies and reduced demand, notably in Indonesia. Falling market prices from 19-20 baht to 10.50 baht per kilogram have adversely affected farmers’ incomes. He advocated for accelerated promotion and development of soft rice varieties, which are gaining traction in Asian markets.
Pol. Lt. Col. Charoen Laothamatas suggested maintaining a weaker exchange rate of around 33-34 baht per dollar to boost Thai rice competitiveness. He also recommended securing export quotas for Japan, Iraq, and Saudi Arabia, which have substantial demand for rice in labor markets.
According to the Department of Foreign Trade, Thailand exported 3.73 million tons of rice valued at 75.563 billion baht in the first half of 2025, marking a decrease of 27.29% in volume and 36.45% in value compared to the previous year. The annual export forecast is approximately 7.5 million tons, pressured by India’s large-scale re-exports, low prices, and high stockpiles, coupled with competition from countries continuously developing rice varieties.
White rice remains the top export at 47.19%, followed by jasmine, parboiled, and Thai fragrant rice. Primary markets include Iraq, the United States, South Africa, China, and Senegal, with potential expansion opportunities in the Middle East and Europe, despite a slowdown in some Asian and African markets.