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Pheu Thai Explains It Initiated Policy to Break Rice Export Monopoly, Opens Opportunities for Small Exporters

Politic19 Jan 2026 15:03 GMT+7

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Pheu Thai Explains It Initiated Policy to Break Rice Export Monopoly, Opens Opportunities for Small Exporters

Worawong explained that Pheu Thai initiated the policy to break the rice export monopoly, supporting small exporters. He asserted it is not just fancy words but a continuous effort until all Thais are free from poverty.


On 19 Jan 2026, Mr. Worawong Ramangkul, former Assistant Minister at the Ministry of Commerce and a member of the Pheu Thai team, clarified the origins and key points of the "Breaking Monopoly, Opening Opportunities for Small Exporters" policy. This policy was pushed by Pheu Thai in cooperation with the Ministry of Commerce after the issue of a "100-ton minimum rice stock" for exporters resurfaced in the debate program "Kuy Nok Jo," between Ms. Suphajee Suthampan, Minister of Commerce from the Bhumjaithai Party, and Ms. Sirikanya Tansakul, Pheu Thai's prime ministerial candidate. Although not new, the topic was discussed again.

Mr. Worawong further stated that before Ms. Paethongtarn Shinawatra's government, rice export regulations were set very high, leaving only 279 exporters as of October 2024, while nearly 4 million Thai rice-farming households existed. This created a clear market imbalance. With Thai rice exports valued over 200 billion baht per year, the Prime Minister instructed the Ministry of Commerce to reduce monopoly, increase competition, and allow farmers and small businesses to export rice directly so prices reflect market mechanisms and reduce middlemen's price suppression.

The Pheu Thai government's policy aims for full liberalization of rice exports, believing the quality and strength of Thai rice brands better guarantee products than government licensing. However, during the transition, authorities proposed maintaining a minimum rice stock to monitor deliveries and preserve Thai rice's global reputation, preventing delivery defaults and quality issues that could damage buyer confidence.

Meanwhile, Mr. Pichai Naripthaphan, then Minister of Commerce, acted promptly upon assuming office by convening related agencies such as the Department of Internal Trade and the Department of Foreign Trade to ease export regulations. This was part of the government’s 90-day achievements, including:

1. Reducing rice exporter registration time from 3 days to just 30 minutes via an electronic system, effective from 27 Dec 2024.

2. Lowering the minimum rice stock for small exporters from 500 tons to 100 tons on a trial basis, after public consultation and approval by the Rice Trade Act committee on 17 Jan 2024.

3. Restructuring rice export license fees to align with registered capital size and reduce burdens on small operators, approved by the Cabinet on 13 May 2025 and now published in the Royal Gazette.

4. Waiving all fees for farmers, farmer groups, and cooperatives properly registered, as decided by the Cabinet on 13 May 2025 and likewise published in the Royal Gazette.

Additionally, Pheu Thai has further plans, including:

  • Reducing the minimum registered capital for rice export companies from 5 million baht to no more than 1 million baht.
  • Lowering the minimum membership required for farmer groups to promote community enterprises.
  • Exempting small exporters from submitting monthly rice trade reports.

He cited data from the Department of Foreign Trade showing that in 2025, 47 new operators registered through the DFT SMART–I system, accounting for over 20% of all rice exporters registered, reflecting initial success in breaking the monopoly and returning economic power to the people.

Beyond regulatory improvements, he and his team helped promote Thai rice exports internationally through events such as:

1. Leading Thai rice exporters to sign an MOU for selling 400,000 tons of rice valued at 7.3 billion baht at the Thailand Ultimate Friendship 2025 event in South Africa on 27 Mar 2025.

2. Organizing a Business Matching event under the Thailand Rice Convention 2025 to expand markets in America, Africa, and the Middle East, closing deals for 660,000 tons of rice on 26 May 2025.

3. Negotiating a Food Security promotion project between Thailand and Singapore with Singapore's Deputy Prime Minister and Minister of Trade and Industry, Mr. Gan Kim Yong, on 25 May 2025, leading to an MOU to buy and sell 100,000 tons of rice.

“Breaking the monopoly is not just fancy talk but must be measured by increased opportunities for small players. This is what Pheu Thai has chosen to do and will continue relentlessly until all Thais are free from poverty.”