Thai Rice Exports Drop 19%, Miss 7 Million Ton Target

Thai rice exports have slumped, with nine-month shipment volume plunging 19% and putting the 7-million-ton target at risk. Arada Fuangthong, Director-General of the Department of Foreign Trade, Ministry of Commerce, revealed that Thai rice exports in the first nine months of 2024 (January–September) totaled 4.99 million tons, down 19.26%, valued at $2.962 billion, a 16.84% decline. Not only Thailand but four of the world's top five rice exporters — Vietnam, Pakistan, and the United States — also saw declines; only India increased. "This year Thailand will likely export below the 7-million-ton target, perhaps around 6.5 million tons, which would be the lowest in five years," she said. The main cause is that Thai rice prices are far above competitors: 5% white rice is 21.3% higher than India, 12.2% above Pakistan, and 11.6% above Vietnam. War, high energy costs, a strong baht, and rising freight rates have also squeezed demand. Iraq, once a market for over 1 million tons, has been blocked by the Hormuz Strait closure, while major buyer Indonesia has held off imports.

Government-to-government sales to China have undergone five rounds of talks but stalled because Thai prices are too high, leaving deliveries far short of the 1.22-million-ton contract; only 760,000 tons have been shipped so far. The department will keep negotiating. "I apologize that we could not push exports to meet the target because this year the situation is extremely severe — from the protracted Middle East war driving up transport costs and weakening purchasing power, to consumers switching from expensive rice to other staples. Geopolitical issues and global climate volatility have created unprecedented instability in the production, trade, and consumption cycles of food commodities, making everything extraordinarily difficult. Please do not blame the government or politics; as Director-General I take full responsibility because it is my direct duty," Arada said.