Thailand Allocates 40 Million Baht to Stabilize Coconut Prices
Thailand's government is allocating 40 million baht to purchase surplus mature coconuts and stabilize prices for farmers across eight major coconut-producing provinces through October 2025.
The Department of Internal Trade is moving forward with a mature coconut absorption program for 2025, allocating funds for provincial commerce offices to work with agricultural committees in accelerating purchases of mature coconuts to clear surplus stocks and assist farmers affected by falling prices. The department has notified provinces of the budget allocation and is calling on provincial commerce offices and agricultural committees to expedite the purchasing process, distribute collection points across affected areas, and deliver fair assistance to farmers. Prachuap Khiri Khan province is expected to meet first to approve the project on August 20, 2025, followed by other provinces, with the Department of Internal Trade providing close supervision to ensure purchases meet volume targets and match local production conditions.
The program has been approved to use funds from the agricultural support revolving fund totaling 46.6075 million baht to expand market channels, connect buyers and sellers, reduce surplus mature coconut inventories, stabilize prices, and increase farmer income through both direct market sales and processing surplus coconuts into dried coconut meat. Large mature coconuts will receive management support not exceeding 4 baht per fruit, with a combined target price of 10 baht per fruit for large coconuts, aiming to absorb 10 million fruits using 40 million baht to accelerate market entry and boost farmer incomes.
Mature coconuts that have deteriorated over time or lack suitable quality for direct sale will be processed into dried coconut meat to reduce losses and return production to commerce. The department will provide processing support not exceeding 5 baht per kilogram of dried coconut meat under a target price of 20 baht per kilogram, with a goal of 500 tons using 2.5 million baht. The program covers eight major coconut-producing provinces—Prachuap Khiri Khan, Chumphon, Surat Thani, Nakhon Si Thammarat, Samut Songkhram, Narathiwat, Pattani, and Chachoengsao—which together produce approximately 92 percent of Thailand's coconuts. Eligible farmers are registered with the Department of Agricultural Extension and have production in program areas. The purchasing period runs from approval through October 31, 2025, with the program period from August 13 through December 31, 2025. The Department of Internal Trade will closely monitor implementation to ensure equitable, widespread purchasing within program volume limits.
