Thai rice exporter says policy changes are grain-ing momentum
A seasoned Thai rice exporter expressed support for upcoming changes in rice trade policy, anticipated to be enacted later this month, though he highlighted that small businesses still encounter significant obstacles in entering international markets.
After the first meeting of the Operational Committee under the 1946 Rice Trading Act (Session 1/2025), Commerce Minister Pichai Naripthaphan announced that the committee had approved updates to rice trading regulations to enhance opportunities for farmers and small businesses in rice exports. Another primary objective was to dismantle monopolies, according to Pichai.
Alterations to stock requirements for exporters will take effect by the end of January. Farmer groups and cooperatives will no longer need to maintain rice stock, while small businesses with registered capital up to 10 million baht (US$290,740) will see their stock requirement reduced from 500 to 100 tonnes.
Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, remarked that exporters generally back this policy as it is expected to decrease costs for small and medium-sized enterprises (SMEs). Nonetheless, Chookiat noted that several challenges persist in executing the policy.
Identifying export markets and securing working capital are essential for rice exporters, Chookiat stated.
To enhance the policy’s feasibility, Chookiat emphasised that the government should assist SMEs by facilitating access to low-interest funding sources, thereby enabling effective participation in the rice trade.
Rice export
Additionally, Pichai mentioned that the fee structure for rice export permits is undergoing revision. Farmer groups and cooperatives will be exempt from export permit fees.
SMEs seeking general export permits, with registered capital up to 10 million baht (US$290,740), will now face a reduced fee of 10,000 baht (US$290), down from 50,000 baht (US$1,453). Companies with registered capital between 10 and 20 million baht (US$290,740 and 581,480) will incur a reduced fee of 30,000 baht (US$870).
For exporters of packaged rice (up to 12 kilogrammes per package), fees will decrease from 20,000 baht (US$580) to 10,000 baht (US$290).
These fee adjustments will require a ministerial regulation, along with Cabinet approval and a legal review by the Council of State, with finalisation expected by March, reported Bangkok Post.
In the forthcoming phase, the government aims to empower SMEs to manufacture and compete in the global market, working towards a fully liberalised rice market without stock requirements and fees.
Pichai also announced that Prime Minister Paetongtarn Shinawatra will travel to China in early February to commemorate the 50th anniversary of Thailand-China diplomatic relations.
The visit will include discussions on the pending delivery of 280,000 tonnes of rice from a 1-million-tonne government-to-government agreement established during former premier Yingluck Shinawatra’s tenure. China has pledged to expedite efforts to complete the delivery this year.
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