Bangkok: The Trade Policy and Strategy Office (TPSO) is advancing its initiative to elevate Thai rice into a high-value agricultural commodity, recognizing that premium rice can command prices 1.5 to 3 times higher than regular varieties.
According to Thai News Agency, the TPSO is set to promote the production of rice based on market demand, focusing on three primary categories: "eco-friendly rice," "distinctive rice," and "healthy rice." This strategy aims to boost farmers' income and enhance the competitive edge of Thai rice on the global stage.
Mr. Nantapong Chiraleartpong, Director of the TPSO under the Ministry of Commerce, disclosed that the office has explored methods to increase rice farmers' income by emphasizing high-value agricultural products for fiscal year 2026. This initiative aligns with the "Refined Rice" policy led by Ms. Supajee Suthamphan, Minister of Commerce, which seeks to transition from mass production to creating added value through quality and unique characteristics aligned with market demand.
Despite Thailand's status as a leading rice producer and exporter, expanding off-season rice cultivation from 8 million rai in 2021 to 13 million rai by 2025 has not resulted in better prices. This underscores the ineffectiveness of relying solely on quantity for sustainable farmer income, highlighting the necessity for a "demand-driven" production approach.
The TPSO suggests developing three specific high-value rice groups: eco-friendly rice, such as organic and low-carbon varieties; distinctive rice, like geographically indicated (GI) and unique local types; and healthy rice, including colored and low glycemic index options. This approach aligns with consumer trends favoring health, environmental consciousness, and product origin.
The study indicates that high-value rice can significantly command premium prices. Organic rice can sell for 1.5 to 3 times more than conventional rice, GI rice for 1.5 to 3.4 times more, and health-focused rice for 1.2 to 3 times more. Additionally, alternating wet and dry rice farming techniques can reduce production costs by 17% and increase yields by 6%. Vietnam's effort to develop low-carbon rice through a 1 million hectare project is noted as a competitive move in the global market. Meanwhile, the global market trend is witnessing a rising demand for premium rice varieties, fueled by growing consumer awareness of health and environmental issues.
In collaboration, the TPSO, together with the Office of Agricultural Economics, the Department of Agricultural Extension, the Geo-Informatics and Space Technology Development Agency (GISTDA), and the Big Data Institute (BDI), has established a central database system. This system will employ AI and Prism Models to forecast production, assess demand, and plan production in alignment with market needs. Mr. Nanthapong added that the TPSO plans to study the premium rice market in Hong Kong and Guangzhou, China, alongside the Department of International Trade's THAILAND RICE ROADSHOW 2026. A seminar is scheduled for July 23rd to collect feedback on policy proposals, with the objective of transforming study results into concrete measures to elevate farmers' income and bolster the global competitiveness of Thai rice.