Thai rice in high demand

Thailand is estimated to export 8 million tonnes of rice in the 2022-23 marketing year, the highest total in five years, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The FAS said exports are up 4% from the previous year, “reflecting the impact of India’s ban on non-basmati rice exports and Thai rice exporters’ concerns over the volatility of the Thai baht.”

The FAS said these measures have boosted global demand for Thai rice, leading to a surge in farm-gate prices. The farm-gate price for white rice in October was $356 per tonne (12,968 baht), up 21% from the five-year average.

Milled rice production in Thailand for the 2023-24 marketing year has been revised up slightly to 19.8 million tonnes. The FAS said the increase of 365,000 tonnes from the last estimate earlier this fall is due to higher-than-expected water reservoir levels for off-season rice production.

Even with the upward revision, the 2023-24 crop would fall 5% below last year’s total of 20.9 million tonnes, the FAS said, noting that “some planting areas were affected by a dry spell and flash floods.”