As a result, the Thai Rice Exporters Association has recently announced an unprecedented plunge in export prices. White rice currently retails at $412 per tonne. That’s a significant 31% decrease from last year’s price of $599 per tonne. India restarted its rice exports, causing a flood of rice onto Southeast Asian markets. This dramatic onslaught of new supply is further complicating the picture by applying new downward pressure on prices.
The Thai Rice Exporters Association is committed to monitoring regularly and publishing what exporters in Thailand are paying for rice. Their most recent results confirm the dramatic decline in the price of white rice. This decrease is indicative of the sharp competitive environment fostered by India’s re-entry into the international rice market. The release timing of this report couldn’t be better to highlight the pressures that local Thai farmers and exporters are currently experiencing.
Last year, the price of white rice reached an all-time high of $599 per tonne. Now that number seems a distant dream as the market continues to battle an oversupply. Prices have just declined and it’s been very hard on the Thai rice farmers. In addition, they are looking down the barrel of significantly decreased revenue and the likelihood of fiscal distress. Experts have been warning that ongoing pressure from Indian exports will only make things worse.
India’s unexpected announcement earlier this month that they would resume rice exports has inundated Southeast Asian markets with even more supply. The sudden influx has had a tremendous impact on Thailand. It has fueled fears in other rice-producing countries in the region of destabilization of their markets. The rock-bottom prices provided by Indian imports are forcing a huge number of Thai farmers to rethink their business models.
In light of the current economic climate, stakeholders in Thailand’s rice industry are urging for measures to stabilize prices and protect local producers. They emphasize the need for a coordinated response to address the implications of foreign competition while ensuring that local farmers can sustain their livelihoods amid falling prices.