CHIANG RAI – The rice fields across Thailand, once seen as a key part of the country’s farming tradition, are now under real pressure as rice prices have fallen below 5,000 baht per tonne. Just months ago, prices ranged from 6,000 to 7,000 baht, and last year they even reached 10,000 to 11,000 baht per tonne.
Driven by both global price drops and too much rice being produced at home, many Thai farmers are struggling to keep going. Some have stopped growing rice altogether to avoid further losses. The government responded with a 114 billion baht support package.
This offers direct payments of 1,000 baht per rai for up to 10 rai for each household. But doubts remain about whether this help is enough to stabilize the rice industry and support the millions of Thais who rely on it, including those in Chiang Rai.
Thailand is the world’s second-biggest rice exporter, but has seen its industry suffer because of several problems. India, the top rice exporter, started shipping rice in large volumes again last year. This flooded the world market, lowering prices and making it harder for Thai rice to compete abroad. At home, a bigger harvest caused by good weather and higher planting worsened the issue.
The Commerce Ministry expects Thai rice output to reach 33 to 34 million tonnes for 2025/2026, while exports of milled rice will drop to just 7.5 million tonnes, a 24 percent drop from last year. Prices now sit well below the 6,500 baht per tonne it costs to produce, placing more stress on farmers’ finances.
Jasmine Rice in Chiang Rai
In Chiang Rai, rice growing is central to many families’ lives, but the impact of lower prices is clear. Farmers like Somsak Yoinchai, who has worked these fields for years, face difficult decisions.
Last year, he could sell jasmine rice for 10,000 baht per tonne, but now he gets just 4,800 baht. The cost of fertilizer, water and labour is as high as ever, so he finds it impossible to continue as before.
Somsak has left part of his land uncultivated and started growing longans instead, something he began with government loans some years ago. However, not everyone can switch crops, since it takes a lot of money and time to make such a change—resources most farmers without savings or already in debt simply do not have.
The struggle is made worse by widespread farm debt. The Puey Ungphakorn Institute for Economics Research reports that farm families owe about 450,000 baht on average, and more than half can’t repay their loans in full. As rice prices drop further, some are pushed to stop farming altogether.
In rural Chiang Rai, fields that used to glow green now stand empty, as more farmers give up hope of making a living from rice. Pramote Jaroensilp, who leads a national farmers’ group, worries that this wave of exits could wipe out a whole generation of growers.
“Many are walking away, seeing no future,” Pramote says. “Unless there’s urgent support, we’ll lose too many.”
Farmers Facing Low Yields
Those who continue try to cut their losses in any way possible. Some grow Vietnamese jasmine rice, which produces up to 1,300 kilograms per rai, compared with only 400 to 600 kilograms from traditional Thai jasmine rice. This helps boost output and allows for two harvests a year.
Still, these varieties are not certified in Thailand, so there are worries about how buyers will respond and about the survival of the country’s famous local varieties. To save more money, some reduce fertilizer or do without modern equipment, but this usually means lower yields and even more hardship.
The Pheu Thai-led government has signed off on the 114 billion baht relief plan for rice farmers, which includes two main policies. The first is a direct payment of 1,000 baht per rai, capped at 10 rai per farming family. This required a special exemption from a previous ban on such subsidies.
It is expected to help about 861,000 families for the 2025 off-season crop, with 7.28 billion baht set aside for this payout. The second part supports loans to help delay rice sales and gives farm co-ops funds to buy and store grain. Another 15.65 billion baht funds these credit lines, and 642 million baht covers interest payments for rice traders who store paddy for later sale.
Although some welcome the package, others feel it does little to address the underlying problems. Pramote Jaroensilp, for example, has pointed out that the 1,000 baht aid per rai barely makes a dent for those with more land or higher costs.
Incentives for Greener Practices
He has urged the government to bring back a rice price guarantee, recommending at least 12,000 baht per tonne for rice with up to 15 percent moisture and 10,000 baht for rice with up to 25 percent. Without clear action, he warns, more rice farmers will turn to protests like those in Ayutthaya in February 2025, when farmers blocked highways to demand help.
Farmers in Chiang Rai also voice concerns over the lack of incentives for greener practices. The Agriculture Ministry has so far failed to provide the promised 500 baht per rai for those who stop burning crop stubble, which adds to air pollution. Many say they cannot afford to switch to eco-friendly methods without support, especially now when prices are so low.
The ongoing rice struggles reach beyond the farms themselves. Rice remains a food staple across Thailand and a key export. Exports brought in 174.5 billion baht back in 2017. If rice growing keeps shrinking, this could push up food prices, cut production and worsen poverty in farming areas, especially where other work is hard to find.
Thailand is also losing ground to countries like Vietnam, where rice yields reach 800 to 1,000 kilograms per rai, thanks in part to better farm methods. Experts such as Somporn Isvilanonda from the Knowledge Network Institute of Thailand say the country must invest in research, improved seeds and practical ways to cut costs and boost harvests.
With many farm families in limbo, spirits in places like Chiang Rai are low. Some, like Somsak, say the government payments help a little, but nowhere near enough to restore hope. “We need prices that let us live decently,” Somsak says, looking out at his fields. “If nothing changes, I don’t know how much longer I can hold on.”
The months ahead will be a major test for the government. With more protests likely and the rice industry at a turning point, real solutions must go further than quick fixes. For now, many in Chiang Rai and across Thailand wait for relief that will truly secure the future of rice farming.
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