The Ministry of Commerce is accelerating efforts to restructure Thailand’s rice industry under a “New Rice Economy” strategy, aiming to improve productivity, increase value-added production, strengthen export competitiveness, and secure more sustainable incomes for farmers amid intensifying global competition.

Poonpong Naiyanapakorn, Director-General of the Office of Trade Policy and Strategy (OTPS), said the government was positioning rice as a strategic agricultural commodity essential to Thailand’s food security, export earnings, and rural economy. The new approach goes beyond expanding export volumes, focusing instead on production efficiency, product differentiation, and ensuring farmers receive fair prices and stable incomes.

Thailand’s rice industry involves approximately 4.6 million farming households, accounting for nearly 60% of the country’s agricultural households. Of these, 3.1 million are in the Northeast, 1.04 million in the North, 410,000 in the Central region, and 58,000 in the South. The country has a total rice cultivation area of 73.82 million rai, comprising 61.18 million rai of main-season cultivation and 12.64 million rai of off-season production.

Beyond exports and domestic consumption, the industry supports an extensive value chain encompassing rice milling, processing, trading, and related services. Thailand’s packaged rice market alone is valued at approximately 66 billion baht. Its competitive strengths also include a diverse range of products, from Thai Hom Mali (jasmine) rice and glutinous rice to indigenous varieties and Geographical Indication (GI)-certified rice. Currently, 24 GI rice varieties are registered across 30 provinces.

Boosting productivity and reducing costs

Despite its reputation for premium-quality rice, Thailand faces a significant productivity gap compared with competing producers. Average rice yields stand at just 456 kilograms per rai, compared with 1,146 kg per rai in China, 979 kg in Vietnam, and 704 kg in India. Differences in rice varieties, irrigation infrastructure, and geographical conditions partly explain the disparity.

Thailand also faces a price competitiveness challenge. As of October 2026, Thai 5% white rice was priced approximately 21% higher than Indian rice and 12% higher than rice from Vietnam and Pakistan, reinforcing the need to improve production efficiency and reduce costs.

To address these structural weaknesses, the Ministry of Agriculture and Cooperatives is developing a “Thai Rice Sandbox” project covering approximately 100 rai. The initiative will introduce high-yield varieties, including RD113 and RD85, alongside low-carbon cultivation, precision agriculture, and improved water management.

Under optimal conditions, the new production model could generate yields of 1.4–1.5 tonnes per rai, with an emphasis on cost-effectiveness and maximizing farmers’ net income.

Expanding exports amid intensifying competition

The restructuring comes as competition in the international rice market intensifies. India’s return to export markets, supported by substantial stockpiles, Indonesia’s efforts to strengthen domestic production, geopolitical uncertainties, exchange-rate fluctuations, and rising logistics costs are reshaping global supply and demand.

Nevertheless, Thailand continues to pursue export expansion through cooperation with rice exporters and efforts to identify new markets.

During the first nine months of 2026, Thailand exported 4.99 million tonnes of rice, generating approximately 94.9 billion baht in revenue. Higher international prices contributed to the increase in export value. The average price of Thai 5% white rice rose from US$335 to US$470 per tonne, while Thai Hom Mali rice exceeded US$1,035 per tonne.

Higher export prices have also translated into improved farm-gate prices. The price of 15% moisture-content white paddy increased from 6,600 baht to 9,500 baht per tonne, a 44% year-on-year increase. Meanwhile, 15% moisture-content Hom Mali paddy rose from 14,700 baht to 16,350 baht per tonne, up 11%.

Several export destinations recorded particularly strong growth. Thai rice shipments to the Philippines increased by 262%, while exports to Malaysia rose by 155%. Overall, exports to Asian markets expanded by 13.25% to 1.71 million tonnes. African markets also offered opportunities, with shipments to the Democratic Republic of the Congo increasing by 63.81% and Mozambique by 2.2%.

Government measures to stabilize prices and restructure production

Wattanasak Sur-iam, Director-General of the Department of Internal Trade, said the government remained committed to maintaining rice price stability and protecting farmers’ incomes through a combination of short-term market interventions and long-term structural reforms.

Measures for the 2026/27 production season have been adopted under the “New Rice Economy” framework endorsed by the National Rice Policy and Management Committee (NRPMC).

Short-term measures comprise four programmes:

1. A credit scheme allowing farmers to delay selling their paddy to avoid selling during periods of oversupply.

2. Financing for rice aggregation and value-added activities to strengthen farmers’ bargaining power.

3. Interest subsidies for rice traders to encourage stock retention and maintain market liquidity.

4. A paddy absorption programme to balance supply and demand and stabilize market prices.

The long-term component focuses on developing premium-quality rice through the second phase of the “Precision Rice Farming” initiative, which aims to improve product quality, production standards, and market value.

The Department of Internal Trade is also facilitating the establishment of paddy purchasing centres offering prices above prevailing market levels, while organizing dedicated paddy markets to expand farmers’ sales channels and encourage competition among buyers. The Department of Foreign Trade, meanwhile, is intensifying efforts to develop existing and new export markets.

Moving towards high-value and precision rice production

Nantapong Jiralertpong, Director-General of the Office of Trade Policy and Strategy, said the future of Thailand’s rice industry depended on combining higher production efficiency with greater product value.

He emphasized the need to capitalize on the quality, diversity, and distinctive identity of Thai rice while developing premium segments, including environmentally friendly rice, health-oriented varieties, and specialty rice associated with particular regions.

The proposed “precision rice cultivation” approach will cover the entire value chain, from seed selection and cultivation to milling, processing, quality certification, packaging, branding, and marketing.

The ultimate objective is to establish a market-driven “New Rice Economy” in which production responds more closely to consumer demand. Rather than competing primarily on price and volume, Thailand will seek to differentiate its rice varieties through their individual characteristics and develop innovative products such as ready-to-eat meals, snacks, beverages, and high-value food ingredients.

This strategy will also encourage closer cooperation among farmers, cooperatives, rice mills, and private-sector entrepreneurs to ensure that added value is distributed more equitably throughout the supply chain.

The government is also exploring the use of Big Data and artificial intelligence (AI) to analyze and forecast cultivation areas, production volumes, harvesting periods, and price movements. These technologies could improve planning across procurement, storage, processing, and market development, enabling more accurate and proactive management of the rice industry.

Rice as a pillar of Thailand’s food security strategy

Wittayakorn Maneenetr, Deputy Permanent Secretary for Commerce, said the government was accelerating the development of a national strategic roadmap for food security through closer coordination among ministries across the entire agricultural supply chain.

The initiative aims to increase agricultural productivity, strengthen food security, reduce waste, improve quality and safety standards, and expand market access, while positioning Thailand as a regional and global food hub.

Rice has been selected as a pilot commodity to demonstrate how coordinated policies can increase farmers’ incomes, ensure access to high-quality food, and strengthen national competitiveness.

The initiative involves cooperation among the Bureau of the Budget and the Ministries of Agriculture and Cooperatives, Industry, and Commerce.

Strengthening oversight of paddy procurement

Meanwhile, Jakkra Yodmanee, Deputy Permanent Secretary for Commerce, said the Ministry of Commerce had instructed its provincial offices, particularly in major rice-producing areas undergoing the main-season harvest, to monitor local rice prices and supply volumes and submit daily reports to the central administration.

The Ministry has also directed its Weights and Measures offices to intensify inspections of paddy procurement to ensure that traders comply with relevant laws and regulations.

Inspections will focus on four key requirements:

1. Rice buyers must clearly display purchasing prices at their business premises and procurement locations.

2. Moisture-content deductions must comply with legal standards and accurately reflect the actual moisture levels of the paddy.

3. Deductions for impurities are permitted only when impurity levels exceed 2% and must remain within legally prescribed limits.

4. Weighing scales and moisture meters must be standardized, certified, and properly verified.

These measures are intended to improve transparency in the rice purchasing process, prevent unfair deductions, and strengthen farmers’ confidence in the market.

Ultimately, Thailand’s transition towards a “New Rice Economy” represents a broader shift from competing primarily through production volumes towards competing through productivity, quality, innovation, and value creation. By integrating agricultural technology, market intelligence, stronger supply-chain cooperation, and more effective price management, the government aims to strengthen Thailand’s position in the global rice market while ensuring that the benefits of the industry reach the millions of households that depend on rice cultivation.

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