Thailand's Rice Exports Surpass 5.08 Million Tons in H1 2024, Valued at $3.3 Billion, Up 55.5%
August, 15 2024
For decades, Thailand has been one of the world’s top rice exporters, holding over 25% of global market share. Thailand’s success is attributed to favorable geography, skilled labor, and government policies supporting rice exports.
Thailand exports rice to over 150 countries, with China, Vietnam, Indonesia, and the Philippines being key markets. However, increasing competition from India and Vietnam has prompted the Thai government to enhance rice varieties, boost production efficiency, and promote Thai rice globally.
H1 2024 Rice Export Performance
According to Ronrong Phoolpipat, Director-General of the Department of Foreign Trade (DFT), Thailand exported 5.08 million tons of rice between January and June 2024, a 25.12% increase year-over-year, valued at 117.83 billion THB ($3.3 billion USD), up 55.5%.
The growth was driven by:
- Increased demand for food security stockpiling
- India’s continued rice export restrictions
- A weaker Thai baht (36-37 THB/USD), boosting price competitiveness
Revised 2024 Rice Export Target
In discussions with the Thai Rice Exporters Association, DFT raised its 2024 rice export target from 7.5 million tons to 8.2 million tons, supported by:
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Higher demand from key importers like the Philippines and Indonesia, which seek to mitigate inflation and drought impacts.
- The Philippines cut rice import tariffs from 35% to 15% until 2028, leading to an expected import of 4.7 million tons in 2024.
- Indonesia is projected to import 3.6–4.3 million tons, depending on domestic production.
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Thailand’s main harvest season (Q4 2024) is expected to yield higher output, as El Niño subsides, increasing rainfall and irrigation water, making Thai rice more competitively priced.
Challenges in H2 2024
Despite the positive outlook, key risks remain:
- India may relax rice export restrictions by October 2024, impacting global supply.
- Higher production in Vietnam, Pakistan, Myanmar, and Cambodia may intensify price competition.
- Geopolitical tensions and volatile shipping costs may raise logistics expenses, affecting export competitiveness.
Market Expansion Strategies for H2 2024
To strengthen global market presence, DFT will:
- Host the Thai Rice Networking Forum 2024, gathering global rice experts to exchange insights.
- Organize Thailand Rice Convention (TRC) roadshows, educating farmers on global rice trends to align production with market demand.
- Conduct bilateral trade meetings with major importers.
- Expand participation in international trade fairs.