Thailand rice exports hit by rising costs

Shafaq News- Baghdad

Thailand is facing growing pressure on its rice exports due to rising costs and global stockpiles, with Iraq emerging as one of the key importers affected by market fluctuations.

According to a report by the Bangkok Post on Monday, Thai exporters are facing cost increases of around 15% due to higher fuel and shipping prices, as well as disruptions to transport routes in the Middle East, leading to declining exports and delays in shipments to regional markets, including Iraq.

The report noted that India’s large rice stockpiles are helping prevent sharp increases in global prices, maintaining relatively stable grain trade due to abundant production and reserves, while around 500,000 tons of Indian rice currently at sea or delayed en route to Middle Eastern markets are adding pressure on costs as traders seek to clear inventories.

Iraq imports Thai rice for distribution through the Public Distribution System, while the private sector relies on Indian basmati rice to meet domestic demand.

Earlier this year, the Thai Department of Foreign Trade said that Iraq imported 95,000 metric tons of rice from Thailand during the first 11 months of 2025, noting that total Thai rice exports in 2025 are expected to range between 7.8 and 8 million tons.

Joint US and Israeli strikes on targets inside Iran on February 28 triggered a wave of Iranian retaliatory missile and drone attacks against Israel and US military bases across the region. Tehran also declared a full closure of the Strait of Hormuz to international shipping.

Read more: Iraqis rush to stock food and medicine as regional war fears grow