Recently, the International Trade Promotion Department of the Ministry of Commerce of Thailand reported that the current price of rice is on a downward trend as global supply increases after India resumes rice exports, and suppliers in Thailand, Viet Nam and Pakistan have also had to take action to reduce rice export prices to compete for market share.
For Thailand, India's decision to resume white rice exports poses challenges and could have an impact on Thailand's rice exports from Indonesia. It is understood that Indonesia will import a total of 3 million tons of rice in 2023, including 1.38 million tons from Thailand, 1.15 million tons from Viet Nam and 300,000 tons from Pakistan. From January to June 2024, Indonesia's rice imports from Thailand have reached 1.07 million tons, and the total import from various countries is expected to reach 4 million tons throughout the year.
In any case, changes in rice prices and global supply chains will have an impact on consumers and importers, and Thailand, as one of the major countries exporting white rice to Indonesia in the past two years, may want to consider promoting the export of jasmine rice, etc., and further highlight the high quality of Thailand's rice, including creating food security cooperation in the ASEAN region to avoid price competition.