Low-Carbon Rice Key to Thailand’s Global Market Share

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Matichon Photo

BANGKOKCommerce Ministry urged Thai farmers to adopt low-carbon rice production to compete in global market.

Poonpong Naiyanapakorn, Director of the Trade Policy and Strategy Office (TPSO) at the Ministry of Commerce, has highlighted the urgent need for Thailand’s agricultural sector to adapt to environmental challenges and changing consumer preferences.

As one of the world’s largest rice exporters, Thailand faces mounting pressure to reduce greenhouse gas emissions in its agricultural practices. According to recent data, the agricultural sector accounts for 15.23% of Thailand’s total greenhouse gas emissions, second only to the energy sector’s 69.96%. Rice cultivation alone contributes to 50.58% of all agricultural emissions.

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Photo: Technology Chaoban

“Rice farming currently generates the highest greenhouse gas emissions in the agricultural sector,” Naiyanapakorn explained. “Thailand needs to promote low-carbon rice production using methods and technologies that reduce emissions to meet environmentally conscious consumer demands and tap into premium markets.”

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Thailand has already taken steps in this direction through initiatives such as the Thai Rice NAMA (Nationally Appropriate Mitigation Action) project, running from August 2018 to July 2024. This sustainable development project is a collaboration between the Ministry of Agriculture and Cooperatives and Germany’s International Cooperation Agency (GIZ).

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Photo: Technology Chaoban

However, competition is intensifying as Vietnam aggressively pursues the low-carbon rice market. With government and NGO support, Vietnam’s Net Zero Emission policy and lower production costs have helped them gain an advantage in environmentally conscious markets, particularly in the European Union, where they benefit from an FTA agreement.

Recent export statistics show the close competition between the two countries. In 2023, Thailand exported 8.77 million tons of rice valued at US$5,147.3 million, while Vietnam exported 8.13 million tons worth US$4,675.7 million.

For the first nine months of 2024 (January-September), Thailand’s exports reached 7.45 million tons (US$4,833.5 million), compared to Vietnam’s 6.96 million tons (US$4,353.3 million).

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