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Thailand Encourages Farmers to Plant Less Rice to Save Water, Impacting Global Rice Markets

by Hashem Ali
August 3, 2023
in Business
2 min read
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Thailand Encourages Farmers to Plant Less Rice to Conserve Water

Thailand, one of the world’s top rice exporters, is urging its farmers to reduce rice cultivation in order to conserve water. This initiative comes as the country faces a period of low rainfall, which poses a risk of water scarcity. The Office of the National Water Resources (ONWR) has advised farmers to consider planting crops that require less water and have shorter harvest cycles.

The secretary-general of the ONWR, Surasri Kidtimonton, expressed concern over the 40% decrease in cumulative rainfall, emphasizing the need to prioritize water for consumption and cultivation of perennial crops, which do not need to be replanted every year.

Rice cultivation requires approximately 2,500 liters of water per kilogram of rough rice. In contrast, alternative crops like millets only need between 650 to 1,200 liters of water for the same harvest quantity. This move by Thailand follows India’s recent ban on non-basmati white rice exports, as the country aims to ensure sufficient availability in domestic markets.

India is the leading global rice exporter, accounting for 40% of rice trade. The ban is expected to have significant implications. If Thailand experiences a significant decrease in rice production, it could further drive up global rice prices, according to Rabobank’s senior analyst Oscar Tjakra.

However, it remains uncertain whether Thai farmers will comply with the directive. Tjakra suggests that high global rice export prices might incentivize farmers to continue planting rice. Rice prices are already at their highest level in a decade due to tighter supplies resulting from the surge in demand following Russia’s invasion of Ukraine in February 2022.

Jeremy Zwinger, CEO of The Rice Trader, noted that Thailand’s efforts to promote water conservation have had limited impact due to the lack of a developed water rights system.

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