Thailand: Banana Boom Rises as Rice Crisis Hits Farmers
BANGKOK—Thai rice farmers are protesting plummeting rice prices, putting pressure on the government, particularly Commerce Minister Pichai Naripthaphan. Minister Pichai’s suggestion that farmers consider cultivating Cavendish bananas as an alternative sparked considerable criticism.
On March 7, Minister Pichai clarified that his suggestion was intended to alleviate farmers' financial strain, not to mandate a shift away from rice cultivation. He reiterated that the government has no policy compelling a switch from rice to bananas. The Ministry of Commerce, he stated, is closely monitoring the crisis and recognizes the urgency of the situation.
The decline in rice prices is largely attributed to India, a major rice exporter, resuming its exports, thus flooding the global market and depressing prices. In response, the Ministry is gathering feedback from farmer groups and presenting these concerns to the Rice Policy Committee to develop urgent relief measures.
The severity of the situation was highlighted on March 4, 2025, when a network of over 200 rice farmers from Phichit, Nakhon Pathom, Suphan Buri, Ang Thong, Lopburi, and Phra Nakhon Si Ayutthaya delivered a petition to Prime Minister Paetongtarn Shinawatra at Government House, detailing their economic hardships.
As a short-term solution, the government is providing financial assistance of 1,000 baht per rai (up to a maximum of 10 rai per household), in response to farmers' requests. Long-term strategies focus on bolstering farmers' incomes by optimizing the agricultural system to meet market demands and regional potential. This includes exploring and promoting alternative cash crops, such as bananas, alongside rice cultivation.
Minister Pichai explained that his banana cultivation reference was an example of a potentially lucrative crop with high international demand, particularly in the Japanese market. The government, however, has no intention of replacing rice paddies with banana plantations; the aim is to provide supplementary income opportunities for farmers in suitable regions.
A pilot program involving the planting of 150,000 banana trees has been launched to demonstrate the export market’s potential. This is not a shift away from rice but an exploration of diversification for economic resilience. Thailand’s popular Kluai Hom Thong banana (Gros Michel) remains a staple domestically and in export markets, especially Japan, where its unique flavor commands a premium price.
Japan offers a significant opportunity for Thai banana exporters. With limited domestic production (confined to Okinawa and Kagoshima prefectures), Japan imports approximately 99% of its annual banana consumption—roughly 1 million tons. The Japan-Thailand Economic Partnership Agreement (JTEPA) grants Thailand a duty-free quota of 8,000 tons, creating a promising avenue for Thai farmers.
Despite this potential, Thailand currently exports only 3,000 tons of bananas annually to Japan (0.3% market share). This highlights a significant untapped opportunity. Obstacles to greater market penetration include a lack of farmer awareness regarding Japanese consumer preferences and import regulations; inconsistent supply due to fragmented cooperation between farmers and exporters; and the underdevelopment of Thailand’s fruit processing industry. The Ministry of Commerce aims to address these challenges to increase banana exports and capitalize on existing demand. By enhancing production capacity, maintaining rigorous quality standards, and ensuring consistent supply, Thai Cavendish bananas—favored by Japanese consumers for their superior aroma and taste—could become a key agricultural export, significantly boosting farmers' incomes and contributing to a more diversified and resilient agricultural sector.
