Thai rice sector must rethink strategies

Industry urged to promote wider variety of fragrant rice as well as increase yields, writes Somhatai Mosika

- Somhatai Mosika

As competition in the global rice market rises, Thailand must redesign its strategies to maintain market share and explore new frontiers.

Lisa Sriprasert, vice-president of operations at Riceland International, a Thai rice exporter, noted several factors impact shipments, including the resumption of India's rice exports and the baht's recent appreciation.

"Everyone is monitoring India's rice export strategy. If the country decides to flood the market with rice, we could see a sharp decline in white rice prices," she said.

Mrs Lisa said the price of white rice has decreased in recent months due to a global market surplus, but Thai hom mali still secures high prices. However, it is facing increasing competition from Vietnam's fragrant rice.

She noted Thai hom mali rice remains the top choice of US consumers, with sales consistently rising despite high prices.

Meanwhile, Vietnam has captured a substantial share of the Thai fragrant rice market by providing varieties at more affordable prices, which appeal to most consumers.

For the 2025/26 crop, Thai hom mali rice is US$1,120 per tonne and Pathum Thani fragrant rice is $680 per tonne, while Vietnam's fragrant rice is $460-900 per tonne, depending on the variety, according to the Thai Rice Exporters Association.

"High prices for hom mali rice could result in negative consequences, especially when economies across the globe are weak. The market share of very pricey rice will decrease as consumer purchasing power weakens," said Mrs Lisa.

She said Vietnam has a different strategy, producing soft fragrant rice at accessible prices with a focus on volume.

Mrs Lisa said Thai rice authorities are trying to promote a wider variety of fragrant rice, but it is difficult because hom mali is still the most recognised variety, and there is a hesitance to lower its price.