Vietnamese rice in Thailand's fields poses growing problem

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Thai farmers are quietly switching to Vietnamese rice varieties because they are cheaper, easier to cultivate, and have similar flexibility, which is popular with consumers. However, Thai authorities are concerned that foreign varieties help farmers meet the needs of cheap prices but lose the national brand.

According to Nikkei, the future of Thailand's rice industry is constantly changing as barely noticeable "intruders" spread across the fields of the world's second-largest rice exporter.


Despite regulations aimed at protecting the authenticity of Thai-branded rice, farmers are quietly turning to Vietnamese rice varieties that are cheaper, easier to cultivate, and have a soft texture similar to Thai rice, which is popular with locals. favored by consumers.

“More than 1 million rai (more than 160,000 hectares) in central Thailand have become home to Vietnamese rice varieties. No one can distinguish between genuine Thai products and Vietnamese products,” said Mr. Charoen Laothamatas, Chairman of the Thai Rice Exporters Association. The association conducts annual rice production monitoring, in part by talking to local millers, farmers and traders.

While the varieties are essentially indistinguishable in the field, this trend raises questions about the entire branding strategy for Thai export rice, which is advertised as the real thing. Top quality for many years.

“If we don't act, I think our whole rice industry will be in danger, because we always promote our rice as premium rice. How can we maintain the quality and authenticity to maintain our position as the leading rice exporter in the world?”, Mr. Charoen said.

Thailand has a strict Plant Variety Protection Act, which prohibits the import of major commodities into the kingdom. Therefore, all Vietnamese rice grown on Thai soil is illegal, grown with seeds smuggled across the border. But since no one can tell the difference without a DNA test, farmers are increasingly ignoring legal restrictions.

“This is a good variety because it is easy to grow and very strong,” said Srichan Kanta, a 48-year-old farmer in Nakhonsawan province, 240 kilometers north of Bangkok. It is resistant to pests and diseases and the rice grains are quite soft, which is suitable for the market demand."

The Vietnamese rice variety grown in Thailand is said to be Jasmine 85, ready for harvest just 90 days after planting. This makes it easier for farmers to grow multiple crops a year, especially in central Thailand, where a good irrigation system allows year-round farming.
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Thailand has been the world's largest rice exporter for more than three decades, but has lost its leading position. © Reuters

In contrast, Thai rice varieties are more difficult to grow. This is especially true of the superior, more aromatic Hom Mali variety but takes up to 120 days to mature and can only be grown in certain northeastern highland areas once a year depending on seasonal rainfall.

No one knows exactly when Vietnamese rice was smuggled into central Thailand. But Mr. Charoen estimates that over the past few years, more than 160,000 hectares of land have been converted to Vietnamese varieties
, suggesting that the seeds have been smuggled in by large trucks by profiteers who saw this as an easy way to take advantage of the country. The demand of farmers is looking for cheaper rice varieties with higher yield.

The focus on authentic rice varieties, according to Nikeei, does not help Thailand avoid increasing competition in the rice market. For more than three decades, Thailand has been the world's largest rice exporter. But since 2011, other competitors have overtaken Thailand. India is currently the world's largest exporter, with an estimated export volume of 22 million tons in 2022. Thailand competes with Vietnam for second place, with export volumes reaching nearly 7-7. 5 million tons per year. According to the Thailand Development Research Institute (TDRI), competition with Vietnam has become fierce because Thailand cannot supply the rice that the market wants at an appropriate price.

Strong competition from Vietnam has added great pressure. "It will be a big problem if Thailand can't develop its own rice varieties to meet different needs in the global market and let foreign varieties make it difficult for the country's rice exports," he said. said a trader at an international trading company.

The rice crop of Thailand's Ministry of Agriculture, which oversees rice research and development, has been criticized for not providing new varieties of rice with better yields to farmers. But the ministry said it has developed 171 varieties to meet needs ranging from high-end restaurants to industrial rice flour.

“The problem is that we lack comprehensive cooperation to distribute different varieties of rice to farmers in order to maximize yield and commercialize at a reasonable cost,” said an analyst at Kasikorn Research Center. to be competitive in the world market”.

“Low productivity is the real culprit as it increases production costs and erodes the long-term competitive advantage of the Thai rice industry,” TDRI said in a report.

According to the Thai Rice Exporters Association, Thailand's rice output is only 300kg to 400kg/rai, compared with 800kg in Vietnam and India and 500kg in Laos.

 
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