Thai rice exports decline as India re-enters market

By Arvin Donley

 Thailand’s rice exports from January to March 2025 faced significant challenges with more Indian rice entering the global market, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture. During that time, Thai rice exports totaled 1.8 million tonnes, down 27% from the same period last year.

The Thai Rice Exporters Association and the Ministry of Commerce have set a lower export target of 7.5 million tonnes for 2025, reflecting the anticipated drop due to India’s resumption of rice exports and a stronger Thai baht, the report said.

The FAS said “the relatively more expensive Thai white rice now faces a more competitive global market. Since April 15, all grades of Thai rice have shown some price fluctuations with an overall upward trend. The rising Hom Mali rice prices suggest a strong demand for this high-quality rice and uncertainty in global rice trading.”

In the first quarter of 2025, Thailand’s rice exports to the United States have increased, particularly exports of Hom Mali rice and other aromatic varieties, the FAS noted.

“This surge is primarily attributed to expectations of an increase in US tariffs, leading traders to accelerate their orders to stock up at current prices,” it said. “Additionally, the rising demand for rice among Hispanic consumers in the United States, as reported by Thai traders, contributed to the increase in imports.”

The Indian government announced in November 2024 that it was resuming non-basmati white rice exports with a minimum floor price of $490 per tonne, ending a ban that started in July 2023. India, the world’s second largest rice producer, is projecting exports to reach 24 million tonnes this year after falling to 14 million tonnes in 2023-24. Thailand exported a record 9.8 million tonnes that year, but is forecast to ship 7.5 million this year.India’s rice stocks hit a record at the beginning of January, reaching eight times the government’s target. 

This article has been republished from The World Grain.