The Ministry of Commerce is addressing the problem of falling aromatic coconut prices impacting Thai farmers by inviting stakeholders in the aromatic coconut industry and related agencies to discuss restructuring and regulating the entire industry system. This includes managing production to align with market demand, improving product quality, expanding markets, and strictly monitoring businesses suspected of using foreign nominees. The goal is to create a fair pricing mechanism and strengthen Thailand's aromatic coconut industry for the long term.
Ms. Supachai Suthumpun, Minister of Commerce, revealed after the meeting that Thai aromatic coconut farmers have been severely affected by low prices caused by various factors, such as factories sorting and trimming fresh coconuts and agro-processing industries unable to purchase due to excess supply and product quality not meeting market demands. Additionally, foreign investors or nominees have infiltrated the business from upstream to downstream, altering the structure of the Thai aromatic coconut industry. Farmers face low prices that do not cover production costs, resulting in insufficient income to maintain quality standards required by the market. This gap has allowed foreign capital groups to gain influence throughout the aromatic coconut industry.
Ms. Supachai added, “Today (12 March 2026), the Ministry of Commerce held a meeting at the Burachat Chaiyakorn Conference Room to discuss solutions to the problem of falling aromatic coconut prices. The meeting included stakeholders from the coconut industry and related agencies, such as the Ratchaburi Provincial Industry Council, Ratchaburi Farmers Council, Thai Aromatic Coconut Association, and over 15 local entrepreneurs. The purpose was to gather opinions, reflect on true cost perspectives, set market directions, and find structural solutions to longstanding issues, establish a fair pricing mechanism, and enhance aromatic coconut quality to create more market opportunities.”
“The meeting discussed plans to address price volatility, restructuring the coconut trading business to increase transparency and systemization. Strategies include managing production quantities to match market demand (demand and supply) to prevent oversupply, adjusting prices, raising product quality to reduce import rejections abroad, controlling processing standards to prevent contamination, expanding market opportunities through processing, export market expansion, developing premium products, and increasing domestic demand. Concurrently, there will be strict oversight of businesses operating as nominees for foreigners to regulate fair market mechanisms and build trust with foreign partners.”
“However, these strategies cannot be driven by the Ministry of Commerce alone but require integrated cooperation from all parties to apply to other Thai agricultural products. The Ministry also plans to enforce business operations according to the Foreign Business Act B.E. 2542 (1999) and the Accounting Act B.E. 2543 (2000) as part of creating an appropriate agricultural market system. This aims to seriously, transparently, and effectively prevent and monitor nominee use, protecting national interests, maintaining economic security, and ensuring fair business competition for sustainable Thai economic growth.”
Mr. Poonphong Nainanapakon, Director-General of the Department of Business Development, concluded, “This meeting is a crucial opportunity to build sustainability in Thailand’s aromatic coconut industry, which holds high potential in the global market. We must collaborate to establish a strong structure from upstream to downstream to prevent losing competitive opportunities internationally for Thai entrepreneurs. The Department of Business Development confirms it will continue to integrate cooperation with related agencies to enforce legal compliance, create fair competition, and strengthen the Thai aromatic coconut industry long term. We also warn those involved against enabling offenders and emphasize that Thai nationals should be cautious not to assist, support, or hold shares on behalf of foreigners to circumvent or violate the law. Violators will face strict prosecution under the Foreign Business Act B.E. 2542, including Section 36 for Thai nationals aiding foreigners and Section 37 for foreigners conducting business without permission, punishable by imprisonment up to three years.”“or a fineranging from 100,000 to 1,000,000 baht, or both imprisonment and fine. If court orders are disobeyed, daily fines of 10,000 to 50,000 baht may be imposed until compliance. It is believed that aromatic coconut prices will gradually rise within one month, supported by key markets like China, which is emerging from winter and will increase cold beverage consumption.”
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