Thailand’s Rice Exports Plunge in Q1 2024

Thailand’s rice exports experienced a significant drop of 30% year-on-year in the first quarter of this year, according to an industry association report released on Monday. The total volume of rice exports for the quarter reached 2.1 million metric tons.

Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association, informed reporters that the downturn was primarily due to delayed procurement decisions by importing nations and the resumption of rice exports by India.

He cautioned that full-year exports might not reach the projected 7.5 million tons. However, he noted an increase in orders from the United States following a temporary suspension of substantial new tariffs.

The association anticipates that export volumes for the second quarter will mirror those of the preceding three months.

The 36% tariff imposed on Thailand, Southeast Asia’s second-largest economy, is among the highest levied by the US administration.

A delegation, spearheaded by Finance Minister Pichai Chunhavajira, is scheduled to engage with US officials in Washington this week to advocate for reduced tariff rates.

Chookiat warned that Thailand, currently the world’s second-largest rice exporter, risks losing its position if tariffs surpass 10%. In the previous year, Thailand exported 9.94 million tons of rice, valued at 225.65 billion baht, with the United States ranking as its third-largest market in terms of volume.