Thailand’s rice exports under pressure from rising costs
Thailand rice exports face pressure from rising logistics costs and Middle East disruptions, impacting key buyer Iraq. Meanwhile, India’s large stockpiles are keeping global prices stable, though delayed shipments and higher freight costs continue to strain trade flows and exporter margins.
Rice exports from Thailand are facing increasing pressure due to rising costs and global stockpiles, with Iraq emerging as one of the key importers affected by market fluctuations.
According to Bangkok Post, Thai exporters are experiencing cost increases of around 15% due to higher fuel and shipping prices, as well as disruptions to transport routes in the Middle East. This has led to declining exports and delays in shipments to regional markets, including Iraq.
At the same time, large rice stockpiles in India are helping to prevent sharp spikes in global prices, maintaining relatively stable grain trade thanks to abundant production and reserves. Currently, about 500,000 tonnes of Indian rice are either at sea or delayed en route to Middle Eastern markets, adding pressure on costs as traders seek to clear inventories.
Iraq imports Thai rice for distribution through the Public Distribution System, while the private sector relies on Indian basmati to meet domestic demand. Earlier this year, the Thai Department of Foreign Trade reported that Iraq imported 95,000 tonnes of Thai rice during the first 11 months of 2025, with total Thai rice exports in 2025 expected to range between 7.8 and 8 million tonnes.
Additional pressure on logistics and prices has come from the Middle East conflict: joint US and Israeli strikes on targets inside Iran on February 28 triggered a wave of Iranian missile and drone attacks against US and Israeli bases across the region. Tehran also announced a full closure of the Strait of Hormuz to international shipping.
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Source : Ukr Agro Consult
