Creating the policy framework for a sustainable rice industry in Thailand, which is considered the largest exporter of rice. What lies ahead for the Thai government, and what strategic recommendations can be given to the government.

1. Creating the Policy Framework for a
Sustainable Rice Industry in ThailandPresentedby,
SarthakLuthra

2. Spatial Distribution

3. Demographics

4. Rice Production in Thailand

5. Commodity Prices - Volatility

6. Consumption Pattern

7. Rice Pledging Scheme
Government buys rice to
farmers at prices 50
% above the market
price.
RICE was
stockpiled in
warehouses and
exports cutted
Sudden shortage
from the #1
exporter will
increase rice world
prices
Revenues will be
used to sustain
the subsided
scheme
Win-win situation
for the
government and
farmers

8. Consequences Rice Pledging Scheme
INDIA LIFT EXPORT BANS ADDING 10 MILLION TONNES
OF RICE TO THE MARKET
FARMERS LOSS INCENTIVES TO PRODUCE HIGH QUALITY RICE
LOSSES ESTIMATED US$22 BILLION = ONE YEAR THAILAND
GVT TOTAL BUDGET
19 M TONNES OF RICE STORED WHILE
THAILAND PRODUCE 20 M TONNES A YEAR
US $ 1.3 BILLION IN DEBT TO THE
FARMERS

9. Measures Military Junta
SELL RICE IN
WAREHOUSES
AS QUICK AS
POSSIBLE
GIVE LOW
INTEREST
RATES LOANS
TO FARMERS
TO KEEP RICE
STORED
DIVERSIFY
EXPORTS:
RUBBER GLUT

10. Short Run Strategy
Exis6ng stock management
Trade
Micro Credit
ICT
INTERVENTIONS
Vulnerable consumers of the
society
Affected farmers
Ethanol producNon
Exports to African markets
Microfinance (SHG/JLG)
Risk pooling
ExploiNng technology
e-Farming

11. Microfinance Opportunities
Self help groups
Joint liability groups
MFI
Bank credit
Support
Higher savings
Financial
Sustainability
Asset generaNon
Self sufficiency
Entrepreneurship
Risk management

12. ICT: e-Farming
CREATING A VIRTUAL DATA AND MARKET PLACE WHERE FARMERS CAN DECIDE,
TRANSACT, AND REALIZE BETTER PRICE
Private/Market
Government
Data
Technology
VLE
Farmer
• Weather data
• Modern farming pracNces
• Market prices
• Subsidies
• Crop informaNon
• Input prices
INTERFACE
Reducing the subsidy burden
Empowering and educating the farmers
Improved yields
Better price realization
Higher productivity

13. Royal Rice CouncilPolitical Autonomy
“Independently promote, and coordinate, a
sustainable and competitive rice industry
across the value chain”
Responsibilities
Governance
Mandate
Financing
Labor developmentDiversification
Research &
Development
Medium Term Strategy

14. 1.5
60
Insured Rai (millions)
Risk Management
Capital Investment
Access to Financing
Opportunities
80%
subsidized
476
million baht
Medium-
term loans
Thai rice for
Chinese machinery
Factors of
production
Incentivizing youth
farmers
Financing
Bank of Agriculture and
Agricultural Cooperatives

15. Alternate Products
Alternate Crops
- Rice noodles
- Rice paper
- Rice-flour cakes
- Rice bran oil
- Rice vinegar
- Rice milk
- Puffed rice
- Rice crackers
- Quick-cooking rice
1.7
trillion baht
domestic market
Via zoning
areas
Better water
management
Less supply,
better prices
Diversification
Department of Foreign Trade,
Ministry of Commerce

16. Empowerment
VET Skilling
Phosop, traditional
Thai rice deity
GrowThailandDemand-based
Labor Development

17. Research Areas
Research Funding
Lowest yield among
top 10
producers, less than
world average
50%
return
Labor-saving
techniques
Demand-
based strainsSystem of Rice
Intensification
$6
million
budget
Budget/researcher
Financed
via export
levy
Research & Development
Department of Rice,
Ministry of Agriculture

18. VocaNonal training and educaNon programs to provide Thai farmers with greater
labor mobility and ability to transiNon into different sectors
Long Term Strategy
Labor development
Thailand’s Department of Export PromoNon should partner with industry leaders
and rice producers in an internaNonal brand-building campaign promoNng Thai rice
A strong brand building effort may take a minimum of at least two to three years in
internaNonal markets depending on the country and region
R&D can support brand-building by providing Thai farmers, exporNng companies,
and SMEs with reliable and accurate market research and intelligence
International Brand-Building Strategy

19. Indicative Roadmap Plan
Long TermShort Term Medium Term
Existing stock
management
Trade and export to
African markets
Micro-financing
ICT & e-farming
technology
Royal Rice Council
Rice futures contracts
Alternate products
Closing gender and
youth unemployment
gaps
Increasing R & D
funding
Labor diversification
International brand-
building strategy

20. Thank You