BANGKOK: In view of a 30% decline in rice exports year on year in the first quarter of 2025 to only 2.1 million metric tons, the Thai Rice Exporters Association confirmed Monday, Thailand's rice industry has taken a sore blow.
The honorary president Chookiat Ophaswongse of the association said that delayed purchases by major importers and reopening of India's global rice market after a brief bout of export restrictions were collectively responsible for the decline. These events caused the usual rhythm of Thai exports to stumble.
Chookiat warned that if the current trend persists, Thailand stands to have full-year rice exports below the target of 7.5 million tons, a drop from the previous figure of 9.94 million tons in 2024. The US, to which Thailand exported rice as the third-largest market, imposed a 36% tariff, which however rekindled US demand with a recent 90-day freeze on new tariff hikes, raising some hope among exporters.
Yet still, for the second quarter, exports were expected to flatline with the first quarter, thereby keeping the pressure on the sector.
In the meantime, a Thai delegation, led by Finance Minister Pichai Chunhavajira, will meet US officials in Washington this week to discuss tariff reductions. The negotiation results would massively impact Thailand's export performance in the second half of the year.
At the present engagement, as the second-largest rice exporter in the world, Thailand could still see its ranking dead from there, with trade impediments and demand rebound pressure exerting serious strain on the country's agricultural economy.
[Source Credit: Business Recorder]
