14% Decrease in Rice Export Volumes Due to Reduced Production
Published on: February 5, 2024.
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Rice Export Volumes Expected to Decrease by 14% with Lower Production
Due to lower production and increased competition, the Ministry of Commerce announced on Thursday that Thailand’s rice export volumes are anticipated to decline by 14.4% this year, totaling 7.5 million tonnes. The ministry also revealed that rice production is projected to decrease by 5.9% in 2024, attributed to the El Nino weather phenomenon.
Thailand, the second-largest exporter of rice globally after India, is facing tough competition and numerous challenges, according to the ministry. The expected rise in global supply and reduced imports from trade partners contribute to these obstacles.
Although there are concerns about the decline in rice exports, January saw a significant increase in exports. The ministry reported a year-on-year growth of approximately 44%, with exports reaching 1.12 million tonnes during the month. However, specific details regarding the increase were not provided.
Furthermore, it is predicted that Indonesia may purchase a lesser quantity of Thai rice this year as a result of possessing a substantial stockpile. Additionally, India might lift its export ban on certain rice varieties, which could impact Thailand’s rice exports.
In 2023, Thailand managed to achieve a successful increase in rice exports. Exports rose by 13.6% to 8.76 million tonnes, surpassing the target of 8 million tonnes. Moreover, the value of the exports experienced a significant growth of 28.4% compared to the previous year.
In terms of value, rice exports accounted for 1.8% of the country’s total exports last year.
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