Thai rice prices have been declining amid stagnant international demand and rising production

Thailand's rice prices are falling due to record-high production and stagnant domestic consumption. With reports making rounds of surge in rice production up by 2 million tons from the previous year, this surplus, combined with limited international demand, is putting immense pressure on Thai farmers.

Paddy rice prices have dropped by 17% to 24.5% compared to the previous quarter, mainly due to the harvest of mid-season rice entering the market while demand remains unchanged. Export challenges persist, especially with India resuming shipments, leading to a decline of 0.59 million tons in Thailand’s exports over the last three months of 2024. Without effective intervention, farmers could face substantial financial losses.

On February 26, 2025, the National Rice Policy and Management Committee (NRPMC) introduced emergency measures, including a "Postponing and Storing Rice Project" to regulate supply, interest rate compensation for stockpiling businesses, and designated rice purchase points for farmers. However, these measures might fail to address structural issues in the long-term.

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To resolve recurring crises, experts advocate for reducing production costs through subsidies for fertilizers, machinery, and seeds. Implementing technology-driven farming techniques, such as smart agriculture and precision farming, could enhance efficiency and productivity. Thailand’s rice yield remains significantly lower than competitors, trailing India by 13%, Vietnam by 48%, and China by 52%.