- Stronger demand supports Thailand’s rice exports in June
- THB 10.19 billion package aims to stabilise prices, boost exports
Thailand’s rice exports showed signs of recovery during June 2026, although shipments remained below the previous year’s levels. Cumulative exports, excluding Hom Mali fragrant rice, reached 2.27 million metric tonnes (mnt) as of 21 June 2026, reducing the y-o-y decline to 23.7%, compared with a 28.6% decline recorded in early May. The improvement was driven by stronger weekly shipments as overseas buying gained momentum.
El Niño concerns support export demand and prices
Growing concerns over a potential Super El Niño prompted precautionary purchases by several Southeast Asian importers, particularly the Philippines and Malaysia, while demand from African buyers also remained firm. This increased buying activity supported Thailand’s weekly export volumes and contributed to higher export quotations across major non-fragrant rice grades.
During the five weeks ending 23 June, export prices strengthened across all major non-fragrant rice grades. 5% white rice increased from $452/t to $472/t, 25% white rice rose from $377/t to $391/t, while 5% parboiled rice advanced from $442/t to $464/t. A modest depreciation of the Thai baht also improved export competitiveness, although Thai rice continued to trade at a premium to competing origins.
Govt announces THB 10.19 billion support package
To support farmers and stabilise domestic paddy prices during the 2026/27 marketing season, Thailand’s National Rice Policy and Management Committee approved a THB 10.19 billion ($314 million) assistance package covering 11.5 mnt of paddy.
The package includes financial support for delayed paddy sales, funding for farmer cooperatives to enhance storage and value addition, interest compensation for traders holding stocks, and initiatives to improve premium rice quality under the government’s “New Rice Economy” programme. Additional funding has also been approved to expand the existing farmer income support scheme.
Thailand intensifies efforts to expand exports
Alongside domestic support measures, Thailand is stepping up efforts to diversify its export markets. Authorities are working with exporters to expand shipments to Africa and Latin America, while trade missions have been planned for major importing countries, including the Philippines, Malaysia, and China.
Government-to-government sales are expected to remain an important growth driver. Thailand has already completed an initial shipment of 40,000 t to China under an existing agreement and is negotiating additional volumes. Combined G2G sales and commercial negotiations with Chinese buyers could reach 960,000 t, accounting for nearly 14% of the country’s 7 mnt export target for 2026.
Outlook
Thailand’s rice export outlook has improved as stronger demand from ASEAN countries and Africa offsets part of the slowdown experienced earlier this year. While exports are still trailing last year’s pace, government support measures, expanding market access and potential G2G sales with China are expected to underpin shipments during the second half of 2026. However, the pace of exports will largely depend on domestic production, water availability and the impact of El Niño on the upcoming crop.
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