Wedoany.com Report-Sept. 9, Thai rice exports have recorded a notable decline this year due to stronger competition and currency fluctuations, which have weakened price competitiveness. A report from the Foreign Agricultural Service (FAS) of the United States Department of Agriculture, dated September 3, highlighted that as of August 17, Thailand exported 3.87 million tons of rice. This represents a 26% decrease compared with 5.29 million tons during the same period last year. As a result, Thailand moved from second to third place among the world’s largest rice exporters, with India and Vietnam ahead.

The FAS report attributed the decline mainly to India’s re-entry into the market with lower-priced rice and reduced demand from major buyers, including Indonesia and the Philippines. India’s aggressive pricing strategy has placed significant pressure on Thai exporters, who are finding it increasingly difficult to compete.

Another factor has been the volatility of the Thai baht, which has further reduced Thailand’s competitiveness in global markets. Industry representatives have also noted that changes in U.S. tariffs have added uncertainty to the premium jasmine rice segment. These developments have complicated Thailand’s ability to maintain a strong position in the international market, particularly for high-value rice varieties.

Domestic concerns are also mounting as falling export prices have contributed to persistently low rice prices within Thailand. Farmers, particularly those producing non-premium varieties, are experiencing financial difficulties due to lower export demand, high production costs, and reduced profit margins. The FAS report observed: “These domestic rice prices remain low, creating financial difficulties for farmers, especially those growing non-premium varieties, due to falling export prices, high production costs and reduced export demand.”

In response, the Thai government introduced measures on August 19 aimed at stabilizing rice prices and supporting farmers ahead of the 2025-26 marketing year. The program has a total budget of 37.9 billion baht ($1.2 billion). Within this, 7.3 billion baht ($226 million) has been allocated specifically to support rice prices for the 2024-25 off-season harvest.

Under the plan, eligible households will receive 1,000 baht per rai ($4.9 per hectare), capped at 10,000 baht ($309) per household. The support is expected to reach more than 5.49 million registered rice farms. Officials hope these measures will mitigate farmers’ losses, stabilize production levels, and ensure that rice farming remains sustainable amid a challenging global market environment.

Overall, Thailand faces an increasingly competitive international rice trade landscape shaped by pricing strategies from rivals, shifting demand patterns, and financial strains on farmers. While government intervention provides temporary relief, longer-term challenges remain for exporters and producers seeking to retain market share in the face of fluctuating global conditions.