Thai rice exports projected to decline by 14.4% in 2024 due to reduced production
Published on: February 6, 2024.
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Thailand’s Rice Exports Expected to Decline in 2024
Thailand, the second-largest exporter of rice globally, is anticipating a decrease in rice exports in 2024. The country’s commerce ministry recently announced that it expects to export 7.5 million metric tons of rice, a decline of 14.38% compared to the previous year. This decrease is primarily attributed to lower production levels and intensified competition in the market.
The ministry stated that rice production is projected to decrease by 5.87% in 2024, primarily due to the impact of the El Nino weather phenomenon. This factor is expected to have a significant effect on the overall rice production in Thailand.
Thailand’s rice exports are facing several challenges, including higher global supply and reduced imports from trade partners, according to the commerce ministry. These factors have contributed to intensified competition in the market and pose challenges for the country’s rice exporters.
However, Thailand experienced a surge in rice exports in January, with a year-on-year increase of approximately 44%, totaling 1.12 million metric tons. The ministry did not provide specific details regarding this increase, but it indicates potential growth opportunities in the near future.
Thailand’s rice exports to Indonesia may be affected by the large stockpile in the latter country, potentially resulting in reduced demand for Thai rice. Additionally, India, the leading rice exporter, may lift its export ban, which could further impact Thailand’s rice exports.
In 2023, Thailand achieved significant growth in rice exports, surpassing its target of 8 million metric tons with a total export of 8.76 million metric tons, marking a 13.6% year-on-year increase. The value of these exports also witnessed substantial growth, rising by 28.4% compared to the previous year.
Thailand’s rice exports in 2023 accounted for 1.8% of the country’s total shipments in terms of value. Despite the challenges and competition in the market, Thailand continues to play a crucial role in the global rice export industry.
