2024 Thai Rice Exports Forecasted to Decline by 14.4% Due to Decreased Production
Published on: February 5, 2024.
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Thailand Expects Decline in Rice Exports, Faces Increased Competition
Thailand, the world’s second-largest rice exporter, anticipates a decrease in rice exports for 2024. The country’s commerce ministry recently stated that it expects to export 7.5 million metric tons of rice in 2024, which is a 14.38% decline compared to the previous year. This decline can be attributed to various factors such as reduced production and heightened competition in the global market.
According to the ministry, rice production is projected to decrease by 5.87% in 2024 due to the impact of the El Nino weather phenomenon. This weather pattern has negatively affected rice cultivation, resulting in lower production levels.
Thailand’s rice exports are expected to face stiff competition and numerous challenges in the coming years. Factors contributing to this include a higher global supply of rice and reduced imports from trade partners. Furthermore, Indonesia, one of Thailand’s major rice buyers, may purchase less Thai rice in 2024 due to a large stockpile. Additionally, India, the top rice exporter, may lift its export ban, further intensifying the competition.
Despite these challenges, Thailand experienced a significant increase in rice exports in January. During this period, the country’s rice exports rose by approximately 44% compared to the previous year, reaching 1.12 million metric tons. However, specific details regarding this surge were not provided by the ministry.
In 2023, Thailand achieved impressive growth in rice exports, surpassing its target of 8 million metric tons. The actual rice exports for the year amounted to 8.76 million metric tons, reflecting a considerable 13.6% increase compared to the previous year. In terms of value, these exports also saw a significant growth of 28.4%.
Thailand’s rice exports in 2023 accounted for 1.8% of the country’s total shipments in value, indicating the substantial role of this sector in the economy.
Source: [Zawya](https://www.zawya.com)
