Thai Rice Export Volumes Expected to Drop by 14.4% in 2024 due to Decreased Production
Published on: February 6, 2024.
Filed under:
Thailand Expects Decrease in Rice Exports in 2024
February 1, 2024
Thailand, the world’s second-largest exporter of rice, is expecting a decline in rice exports in 2024. The country’s commerce ministry has projected a drop of 14.38% in rice exports, amounting to 7.5 million metric tons. This decrease is attributed to lower production and increased competition in the global rice market.
According to the ministry, rice production in Thailand is expected to decrease by 5.87% in 2024. This decline can be attributed to the adverse impact of the El Nino weather phenomenon. The ministry also acknowledged that Thailand’s rice exports face significant challenges due to expected higher global supply and reduced imports from trade partners.
Despite the overall decline in rice exports, Thailand experienced a surge in rice exports in January 2024. The country witnessed a year-on-year increase of approximately 44%, amounting to 1.12 million metric tons. While the ministry did not provide specific details, this increase in January exports is a positive sign for the Thai rice industry.
In addition to the challenges faced by Thailand, there are external factors that may further impact the country’s rice exports. Indonesia, one of Thailand’s key rice buyers, may purchase fewer amounts of Thai rice due to a large domestic stockpile. Furthermore, India, the largest rice exporter globally, is considering lifting its export ban, which could increase competition in the market.
In 2023, Thailand’s rice exports recorded significant growth. Year-on-year, there was a 13.6% increase, reaching 8.76 million metric tons. This surpassed the target of 8 million tons set by the government. The value of rice exports also witnessed a substantial growth of 28.4% compared to the previous year. These exports contributed to 1.8% of Thailand’s total shipments in terms of value.
Thailand’s rice industry continues to face challenges in the global market. Lower production and increased competition have adversely affected the country’s rice exports. However, the surge in January exports and the strong performance in 2023 indicate the resilience of the Thai rice industry.
Source
