Agri Commodities

Thailand To Export 8 Million Tons Of Rice In 2022; A Four-Year High

Thailand To Export 8 Million Tons Of Rice In 2022; A Four-Year High

The year 2022, has undoubtedly been a strange one in all regards. While people expected the year to support recovery after COVID-19 pandemic disrupted lives over the last couple of years, 2022 presented challenges that no one even in their wildest of dreams anticipated.

With the start of the yea  started the Russia-Ukraine war and with the two biggest grain producers and exporters engaged in armed conflict against one another, the world stared at an inevitable food crisis. The Russian invasion of Ukraine pushed several nations on the brink of a food crisis, with poor nations facing the heat, more than the others.

Adding to the woes, was adverse weather conditions around the world, which hampered domestic crop production and spoiled plans to compromise for the reduced grains export from Russia and Ukraine.

While all this did pose challenges and difficulties for most individuals and nations, for countries like Thailand, it did act as an impetus to raise its Rice Exports.

Thailand On Track To Ship Highest Volumes Of Rice In Four Years

Rice is one the most consumed agro-commodity in the world today and the map of India comes to our mind, whenever we talk about the staple rice. 

Located in Asia, India is the largest rice exporter in the world and occupies a mammoth 40% share in the global rice trade. However, low monsoon rainfalls this year has forced the Asian nation to restrict the exports of rice, opening doors for its rival Thailand.

Thailand is the second largest rice exporter behind India and the GOI’s decision has provided boost to the country’s rice exports such that Thailand is on course to export 8 million tons of rice this year, it’s largest ever since the last four years.

Reasons Behind High Exports Of Thai Rice

Rise in exports of Thai rice can’t be attributed to a single cause and there a variety of reasons behind it. Some of them are as follows:

  • Food Protectionism Approach

In the aftermath of the Russia-Ukraine war, that has led to grain shortages around the world, a number countries have adopted a protectionist approach and are restricting exports of grains to tackle inflation like India and the wave of food protectionism is helping Thailand grow its rice exports.

  •   Shift in preferences

With the biggest wheat exporters, Russia and Ukraine engaged in war, people had no choice but to shift from wheat to other commonly available staple like rice amid bottlenecks in the supply chain. This has led to an increase in demand of rice globally, which Thailand is making use of to grow its rice exports.

  • Weak currency

Exports of Thai rice have also received a boost due to weaker Baht and lower rice prices in the global markets that have boosted Thailand’s competitiveness. 

  • Return of Iraq as a rice buyer

Thailand have also benefitted from the return of Iraq as a major buyer of Thai rice as most of the exports have gone to Iraq after Indonesia this year.

The Bottom Line

Thailand is the second largest rice exporter behind India and the series of events in 2022 has provided ample opportunities to boost its rice exports. Making use of the situation, Thailand has grown its rice exports and the country is set to export 8 million tonnes of rice this year, marking its four-year high. 

If you are an importer and wish to buy Thai rice in bulk or are a rice exporter willing to start rice exports, then is the platform for you. Tradologie has 600,000+ verified global buyers and over 70,000 suppliers from 100+ countries in its network and through the platform, you can connect with the relevant ones for your rice trade with ease. 

To register as a buyer, click here. To register as a seller, click here.

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