Thailand Rice Exports in Trouble due to India and USA

06-May-2025 11:34 AM

Thailand Rice Exports in Trouble due to India and USA
★ India is poised to benefit as Thailand's rice exports face growing challenges, particularly due to the threat of a 36% tariff by the United States if no trade agreement is reached before July. In 2023.
★ Thailand exported 9.95 million tonnes of rice, its highest volume since 2018, but projections for 2025 suggest a significant decline to just 7.5 million tonnes.
★ The U.S. alone imported 848,000 tonnes of Thai rice last year, making it Thailand’s third-largest market.
★ However, in the first quarter of 2025, Thai rice exports have already dropped by 30% year-on-year.
★ A major factor is price competitiveness. Thai rice is currently priced $40 per tonne higher than Indian rice, prompting key buyers such as South Africa, Malaysia, and the Philippines to switch to Indian suppliers.
★ Vietnamese rice is also capturing market share due to lower production costs and better yields.
★ With stocks shrinking and Thai rice prices remaining high, export prospects look weak.
★ Meanwhile, India is expected to see a surge in rice exports as global buyers turn toward more affordable alternatives.