Thailand’s Rice Exports Face 10-Month Decline: What It Means for the Global Market
Thailand’s rice exports fell sharply in August, dropping 30% year-on-year to US$3.94 billion, with volumes down 16.9% to 739,497 tonnes. Major markets including the U.S., South Africa, Senegal, Iraq, and Mozambique saw declines, while exports to Cameroon, China, Malaysia, Hong Kong, and Canada rose. Domestic white rice prices eased to THB6,500–6,700/tonne, while jasmine rice held at THB15,500–16,000/tonne.
Thailand’s rice exports have plunged 30% year-on-year, reaching just US$3.94 billion in August, marking a grim milestone as the country endures a 10th consecutive month of decline.
According to the Ministry of Commerce’s Trade Policy and Strategy Office, export volume also slipped, down 16.9% to 739,497 tonnes during the same month. The downturn has impacted major markets, including the U.S., South Africa, Senegal, Iraq, and Mozambique, with few bright spots in shipments to Cameroon, China, Malaysia, Hong Kong, and Canada, where demand surprisingly increased.
Over the first eight months of the year, Thailand’s total rice exports have exceeded 5 million tonnes, reflecting a significant drop of 24.1% compared to the previous year. This substantial decrease comes at a time when domestic rice prices are also trending downward. As reported by the Thai Rice Millers Association, the price of white rice stood at THB6,500-6,700 (approximately US$201-208) per tonne as of Wednesday, which is a THB200 reduction from just a week earlier. Meanwhile, jasmine rice prices appear to be holding steady at THB15,500-16,000 per tonne.
Market Forces at Play
With rice being a staple in many households, these shifts in Thailand’s export landscape are raising eyebrows and prompting discussions about broader agricultural strategies. While exports slump, rice’s domestic pricing trends indicate potential shifts in supply and demand that could reverberate throughout the economy.
Unexpected Bright Spots
As Thailand grapples with these export challenges, the uptick in shipments to certain countries could signal changing consumer preferences or emerging markets that are keen to fortify their rice supply chains. Amidst the sea of declines, it’s a little like finding a pearl in an oyster—a rare but valuable indication that opportunities still exist.
What’s Next for Thai Rice?
Analysts are now closely monitoring how this continuing export decline could affect local farmers, as agricultural livelihoods hang in the balance. As Thailand strives to maintain its position as one of the world’s top rice exporters, the path forward is uncertain but undoubtedly crucial.
Questions & Answers
How significant is the decline in Thailand’s rice exports?
The decline is quite significant, with a 30% drop year-on-year in August, reflecting continued challenges in Thailand’s rice export market.
Which markets experienced a decrease in rice imports from Thailand?
Major markets like the U.S., South Africa, Senegal, Iraq, and Mozambique reported declines in rice imports, demonstrating the broad impact of these export challenges.
What are the current domestic rice prices in Thailand?
As of Wednesday, domestic prices for white rice were reported between THB6,500-6,700 (about US$201-208) per tonne, showing a slight decrease, while jasmine rice prices remained stable at THB15,500-16,000 per tonne.
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Source : Retail News Asia
