Krungthai COMPASS expects Thai rice exports to be bustling in 2023, but there are still challenging factors ahead.

Key Highlights
Foreign news agencies report that rice prices have risen to the highest level in 15 years. And if you look back at the direction of Thai rice exports for the remainder of 2023, continuing until 2024, it is expected that there will still be a good trend. from the high demand of foreign trading partners because of food security concerns and India’s rice export restriction policy In addition, the value of the baht is at a depreciating level, which has a positive effect on the income of players in the rice market. From farmers, rice mills, to exporters. It is expected that the export volume of rice in this year 2024 will be approximately 8.6 million tons, similar to that in 2023. In addition, transportation costs and chemical fertilizers have been greatly eased. Help support the profits of the rice industry.

In the next period, the Thai rice business will still face structural problems from rice varieties that are beginning to fall out of demand in the market. and the problem of transparent, accurate, and efficient rice stock management. as collateral for loans Including the cost of producing rice that is higher than competitors, making price competition difficult and facing the problem of Climate Change that is likely to become more severe.

Krungthai COMPASS recommends that Thai rice businesses should focus on developing sustainable rice production and applying technology. To answer the global trend that places importance on reducing greenhouse gas emissions. Including the government sector should be the driving force in infrastructure investment in the rice business. Moreover, entrepreneurs should focus on the market leading production. and expand the market base by transforming it into higher value products. For use in the industrial sector