Thailand and IRRI Cooperate on Drought Resilience
Thailand's Rice Department is in discussions with the International Rice Research Institute (IRRI) to enhance sustainable rice production. The talks focus on applying lessons from the Tung Kula Rong Hai region to improve drought resilience. This collaboration aims to bolster the long-term viability of Thai rice farming in the face of climate change.
- The Tung Kula Rong Hai region, historically known for its arid and saline soil, produces "Khao Hom Mali Thung Kula Rong-Hai," a premium jasmine rice with a unique fragrance attributed to the environmental stress on the plants. This rice was the first Thai product to receive a Protected Geographical Indication (PGI) from the European Union in 2013, which helps in commanding higher prices and protecting against imitation. - The collaboration between Thailand and the International Rice Research Institute (IRRI) is a long-standing one, dating back to 1960. This partnership has been instrumental in developing new rice varieties with tolerance to floods and droughts, crucial for adapting to climate change. - Key competitor Vietnam is strategically shifting its rice export policy to focus on quality over quantity, planning to reduce exports from approximately 8 million tons in 2025 to 7 million in 2026, with a long-term goal of 4 million tons by 2030. This creates an opportunity for premium Thai rice exporters to fill the gap in the global market. - The European Union is set to implement a safeguard mechanism on rice imports from Asia, including Thailand, starting January 1, 2027. This will involve a tariff-rate quota system, where imports exceeding historical averages will be subject to higher tariffs, impacting export strategies. - The Thai baht has shown significant appreciation against the US dollar in 2025, outperforming other regional currencies. While a strong baht can pressure export competitiveness, the average exchange rate for 2025 has been around 0.027 EUR. - There is a growing demand in Europe for specialty and aromatic rice varieties like Jasmine and Basmati, with the market expected to reach USD 1,010.0 million by 2033. This trend, coupled with increasing consumer interest in organic and sustainably produced rice, presents a significant opportunity for premium Thai rice. - In the Asia-Pacific region, consumer awareness of the health benefits of organic products and a preference for sustainable farming are driving the organic rice market, which is projected to grow to $12.0 billion by 2034. This aligns with the need for traceability and sustainable sourcing certifications to differentiate in competitive markets. - Vietnam and Singapore signed a Memorandum of Cooperation on sustainable rice trade in late 2025, focusing on low-carbon rice exports and digital traceability. This signals a growing trend in the APAC region towards sustainability standards and could influence future trade agreements and buyer requirements.
