BANGKOK — Falling rice prices have led to protests by farmers and hurt the government’s popularity, especially that of Commerce Minister Pichai Naripthaphan, who encouraged farmers to grow Cavendish bananas instead. His comments sparked widespread criticism.
On March 7, Pichai clarified that his suggestion was merely an alternative to help farmers and rice growers. He reiterated that there is no policy that requires farmers to switch from rice farming to banana farming.
Pichai emphasized that the Ministry of Commerce was closely monitoring the situation and that the plight of farmers was a national concern that needed to be addressed urgently. The fall in rice prices was primarily caused by the fact that India, a major rice exporter, has resumed exports. The ministry has sought feedback from various farmers’ groups and presented it to the Rice Policy Committee to formulate urgent relief measures.
In the short term, the government has provided financial aid of 1,000 baht per rai (up to 10 rai per household) at the suggestion of the farmers themselves to mitigate the effects of falling rice prices. In the medium and long term, the government is working to increase farmers’ incomes by optimizing the agricultural system according to market conditions and regional potential.
The commerce minister clarified that the mention of banana cultivation was just an example of a potential cash crop with strong demand in international markets, especially for Japanese bananas, which have a high market value. However, the government has no intention of replacing rice cultivation with banana cultivation. Rather, it wants to offer additional opportunities to farmers in suitable areas.
The ministry has initiated a trial planting of 150,000 banana trees as a demonstration for farmers to explore the possibilities of the export market. However, this does not mean that there is an intention to completely replace rice cultivation with bananas.
Thai Cavendish Banana Exports
Thailand’s main trading partners for bananas include Japan, China and Cambodia, with Japan being an important market due to its high banana consumption. Bananas are very popular with Japanese consumers due to their good taste, high nutritional value, affordability and accessibility.
Statistics show that bananas account for 63.6% of total Japanese fruit consumption, followed by apples (41.5%) and oranges (29.3%). About 12% of Japanese consumers eat bananas almost every day, while 35% consume bananas 1–5 times a week, showing a steady demand for this fruit.
Despite this demand, Japan’s domestic banana production is extremely limited as it can only be grown in two southern prefectures , Okinawa and Kagoshima. As a result, Japan imports 99% of its banana supply, which amounts to about 1 million tons per year.
Thailand benefits from this demand through the Japan-Thailand Economic Partnership Agreement (JTEPA), under which Japan grants Thailand a duty-free import quota of 8,000 tons of bananas. This is a promising opportunity for Thai farmers to increase their production to meet Japanese consumer preferences.
However, according to the Department of International Trade Promotion, the Thai banana market in Japan remains unstable and volatile. In 2023, Japan imported only 1,345 tons of bananas from Thailand worth 201 million yen (about 57 million baht). These were mainly of the Gros Michel (Kluai Hom Thong) variety. Although Thailand enjoys tariff preferences, it is having difficulties meeting the allocated export quota.
Challenges and Opportunities
The Ministry of Commerce has set a target to increase banana exports, but Thailand currently exports only 3,000 tons per year to Japan. Challenges preventing Thailand from capturing a larger share of the Japanese banana market include:
Firstly, many Thai farmers do not know the preferences of Japanese consumers and import requirements, making it difficult to adapt production to market standards.
Secondly, the lack of cooperation between farmers and exporters leads to inconsistent supply, resulting in price volatility that undermines importer and consumer confidence.
Third, the lack of promotion of Thailand’s fruit processing industry limits its potential. The fruit processing sector could help support agricultural prices in times of downturn and prevent them from falling too low. At the same time, it could remove oversupply from the market in a way that allows for better predictability.
Moreover, processed fruit products from Thailand are just as popular on international markets as fresh fruit. Promoting fruit processing is one of the key strategies to expand trade opportunities in global markets.
Currently, Thailand exports only 3,000 tons of bananas to Japan per year, which is below the quota set by the Japanese government. Compared to Japan’s annual consumption of 1 million tons, Thai bananas only have a 0.3% market share, which is a huge missed trade opportunity.
If Thailand can expand its production capacity, maintain quality standards and ensure a stable supply, Thai Cavendish bananas could become a strategic agricultural product that boosts farmers’ income. Japanese consumers prefer Thai bananas over bananas from other countries due to their better aroma and taste, making them a premium product in the market.
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