Rice market in Thailand - statistics & facts
Rice has long been the foundation of Thai agricultural society and has played a significant role in the nation's traditions, despite the diversity of crops grown there. The Southeast-Asian nation ranks 5th among the leading producers of rice globally. The rice industry is worked by around five million households, or more than 60 percent of the country's total agricultural workforce. Naturally, government assistance has traditionally been provided to rice growers. Price policies like price guarantees and rice-pledging schemes have been part of this in the past, along with a variety of other initiatives like financial aid for planting and harvesting expenses and support for the development of new varieties of rice.
Furthermore, irregular rainfall and higher temperatures caused by El Nino and climate change have affected Thailand's rice sector. Droughts brought on by El Nino limit the availability of water for farming. These issues are worsened by global warming, which puts food security and rice yields at risk. As a result, the sector is under pressure to adopt effective measures for sustainable agriculture. The industry has adopted an innovative approach that combines organic and smart farming techniques to ensure Thailand's rice sector remains globally significant and economically viable. In recent years, the number of farmers using digital smart solutions in Thailand has significantly increased. This trend is also reflected in the increasing number of IoT connections in Thailand, which are crucial for the implementation of precision agriculture and smart farming in the sector.
Rice exports from Thailand
Thailand's primary crop exported is rice and products made from rice. Although the export volume of white rice is higher than the volume of Jasmine rice exported from Thailand, the fragrant rice is more valuable and thus generates a higher export value. Besides these two varieties, parboiled rice is another famous type of rice exported from the country. In July 2023, the world's largest rice exporting country, India, banned the export of non-basmati white rice, which led to a sharp rise in rice shipments from Thailand, making it the second-largest rice exporting country. The combination of growing purchasing power in foreign markets and ongoing concerns about food security due to the extension of the Russia-Ukraine war is expected to drive export growth further. Thai rice prices will likely rise as a result of the tightening supply and increasing demand in both the domestic and export markets.Changes and challenges in Thailand's rice business
Thailand’s per capita rice consumption has declined considerably in recent years because of changes in dietary choices, urbanization, and the increased availability of different food options. The nation's rice business faces a challenge as a result of this shift, making it necessary for it to adjust to the changing consumer preferences.Furthermore, irregular rainfall and higher temperatures caused by El Nino and climate change have affected Thailand's rice sector. Droughts brought on by El Nino limit the availability of water for farming. These issues are worsened by global warming, which puts food security and rice yields at risk. As a result, the sector is under pressure to adopt effective measures for sustainable agriculture. The industry has adopted an innovative approach that combines organic and smart farming techniques to ensure Thailand's rice sector remains globally significant and economically viable. In recent years, the number of farmers using digital smart solutions in Thailand has significantly increased. This trend is also reflected in the increasing number of IoT connections in Thailand, which are crucial for the implementation of precision agriculture and smart farming in the sector.
