Vietnamese rice in Thailand's fields poses growing problem

The future of Thailand's rice industry is in flux as virtually undetectable intruders spread in the paddies of the world's second-biggest rice exporter.

Despite regulations designed to protect the authenticity of Thailand's branded rice, farmers have been quietly switching to Vietnamese strains that are cheaper, easier to cultivate, and have a similar soft texture that goes down well with consumers.

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"More than 1 million rai (more than 160,000 hectares) in the central part of Thailand has become the plantation of Vietnamese rice," said Charoen Laothamatas, president of the Thai Rice Exporters Association. "No one can differentiate which one is the authentic Thai strain and which one is Vietnamese." The association conducts an annual observation of rice production, in part by talking to local millers, farmers and traders.

While the strains are essentially indistinguishable in the field, the trend calls into question the entire branding strategy for Thai rice exports, touted for years as authentic and top quality.

"If we don't do anything I think our whole rice industry would be in danger, since we always promote our rice as premium grades," Charoen said. "How can we maintain our quality and authenticity to remain in the position of the world's major rice exporter?"

Thailand has a strict Plant Varieties Protection Act, which bars imports of major commodity strains into the kingdom. All Vietnamese rice grown on Thai soil is therefore illegal, grown with seeds smuggled across the border. But since no one can see the difference without DNA testing, farmers are increasingly ignoring the legal restrictions.

"It's a good strain as it can be grown easily and it is very strong," said Srichan Kanta, a 48-year-old farmer in Nakhonsawan province, 240 kilometers north of Bangkok. "It can resist pests and its texture is quite soft, matching the market demand."

The Vietnamese rice growing Thailand is believed to be Jasmine 85, which is ready for harvest just 90 days after planting. This makes it easier for farmers to grow crops several times in a year, particularly in the central part of Thailand, which has good irrigation systems that allow year-round cultivation.

Thai rice strains, in contrast, are more difficult to grow. This is particularly true of the premium Hom Mali, which is more fragrant but takes up to 120 days to reach maturity and can be planted only in certain northeastern plateau areas once a year according to seasonal rainfall.

No one knows exactly when Vietnamese rice was smuggled into central Thailand. But Charoen's estimate that over the past few years more than 160,000 hectares of land has switched to Vietnamese varieties suggests seeds were smuggled in large trucks by profiteers seeing an easy way to capitalize on demand from farmers seeking cheaper production with higher yields.

The focus on authenticity is not helping Thailand fend off tougher competition in the rice market. Thailand was the world's biggest rice exporter for more than three decades. But since 2011, others have overtaken it. India is now the world's biggest exporter, with shipments estimated at 22 million tonnes in 2022. Thailand is vying with Vietnam for second place, with each shipping between 7 million and 7.5 million tonnes. The competition with Vietnam is stiff because Thailand cannot offer varieties of rice that the market wants at the right prices, according to the Thailand Development Research Institute (TDRI).

The influx of Vietnamese strains only adds to the pressure. A trader at an international trading house said it is "a big problem if Thailand fails to develop its own rice strains to match various demands in the global market and allows alien strains to contaminate its rice exports."

The Agriculture Ministry's rice department, which oversees rice research and development, has drawn criticism for failing to deliver new strains to farmers with better yields. But the department says it has developed 171 strains to meet various needs, ranging from high-end restaurants to industrial rice powder.

"The problem is we are lacking integrated cooperation to distribute those various rice strains to farmers to maximize the production and commercialization at competitive costs in order to compete in the world market," said an analyst at Kasikorn Research Center.

"Falling productivity is the real factor that should be blamed, as it pushed production costs higher and cut the competitive advantage of the Thai rice industry in the long term," TDRI said in a report.

According to the Thai Rice Exporters Association, Thai rice productivity was only 300 kg to 400 kg per rai in Thailand, compared with 800 kg in Vietnam and India, and 500 kg in Laos.