Finance Minister Pichai Chunhavajira has expressed concern that this year's off-season rice production, expected to exceed 6.5 million tonnes, will face downward price pressure in the global market.
Speaking in his capacity as chairman of the National Rice Policy and Management Committee, Mr Pichai said Wednesday Prime Minister Paetongtarn Shinawatra instructed authorities to oversee paddy rice prices, particularly for this season's off-season rice.
According to the latest reports from the Agriculture and Cooperatives Ministry and the Commerce Ministry, 10% of the off-season rice has been harvested.
The bulk of the harvest is scheduled for March and April, mainly from the central region and parts of the lower northern region. Most of this off-season rice is slated for export as white rice and parboiled rice.
This year global white rice prices have declined because of increased exports from India and lower prices from Vietnam, said Mr Pichai.
As a result, the price of Thai paddy rice has been affected, with the Commerce Ministry instructed to rev up shipments to target markets such as South Africa and the Philippines.
For the 2024/25 season, off-season white paddy rice production is expected to reach 6.53 million tonnes, an increase of 1.08 million tonnes or 20% from the 5.45 million tonnes recorded last year.
Harvesting started this month, with 68% of the total production (4.42 million tonnes) expected to be harvested in March and April.
As of Feb 17, the average price of white paddy rice was 8,650 baht per tonne, marking a 30% decline from 12,445 baht per tonne year-on-year.
Prices for many rice types have been declining continuously since September 2024.
The current price for Thai hom mali paddy rice averaged 16,000 baht per tonne, up 8% from 14,850 baht per tonne year-on-year, while glutinous paddy rice averaged 13,250 baht per tonne, down 0.4% from 13,300 baht per tonne.
Meanwhile, Pathum Thani paddy rice averaged 12,100 baht per tonne, a dip of 16% from 14,400 baht per tonne year-on-year.
According to Mr Pichai, the National Rice Policy and Management Committee already implemented three measures to stabilise paddy rice prices for the 2024/25 season, covering 8.5 million tonnes, to manage rice supply and maintain price levels.
These measures comprise: a credit programme to delay sales of the first (main) crop paddy rice to prevent a glut; credit support for farmer cooperatives to help aggregate rice and add value; and low-interest loans for rice traders to encourage stockpiling.
In addition, the government is providing financial support for farm management and quality improvement, offering 1,000 baht per rai, up to 10,000 baht per household for a maximum of 10 rai.
This initiative aims to support roughly 4.61 million farming households nationwide.