Concern Over Longan Oversupply: Thai Ministry Expands Exports to Indonesia, India, and China
July, 26 2024
The fruit is widely known for its unique taste and aroma, making it difficult to replace with other fruits. Over the past 5-6 years, longan plantation areas have expanded, reinforcing Thailand’s status as one of the world’s largest longan exporters.
Government Measures to Support Longan Farmers
The Department of Internal Trade (DIT) visited Chiang Mai to assess the longan production surge and is now working to expand export markets to Indonesia, India, and China, while also promoting dried longan processing. The department aims to process 100,000 tons of dried longan and encourage fuel stations to distribute fresh and dried longan to customers as part of an annual promotional effort.
According to Wattanasak Sueaiam, Director-General of DIT, Thailand’s total longan production in 2024 is expected to reach 1.44 million tons, a 2% increase from the previous year. Chiang Mai accounts for 40-50% of national production, and prices are currently favorable, with Grade AA longan at 40-45 THB/kg, higher than last year’s 30-35 THB/kg.
Export Expansion and Market Diversification
- DIT is negotiating with exporters to increase shipments to Indonesia and India, where demand for Thai longan is rising.
- China remains a major market, with continued high demand.
- Key strategies include:
- Accelerating exports
- Processing dried and pitted longan for added value
- Promoting domestic consumption, particularly in tourist areas
- Encouraging fuel stations to distribute longan as a promotional gift
Thailand had already planned fruit market management strategies for 2024 since November 2023, covering 900,000 tons of fruit, including 200,000 tons of longan. The government remains confident that these measures will help maintain stable prices throughout the season.