Following more than 30 years of cold relations, Saudi Arabia has resumed diplomatic ties with Thailand. The relocation has created several economic opportunities in both nations, ranging from commerce and tourism to labour and agriculture.
The Thai government has announced an ambitious plan to develop Basmati rice fields with the purpose of selling the produce to the Saudi market. Basmati is a popular rice grain in the Middle East.
Last week, government spokesman Thanakorn Wangboonkongchana said Prime Minister Prayut Chan-o-cha directed relevant agencies to expand agricultural cooperation with Saudi Arabia, including the development of Basmati plantations for export to Saudi Arabia, which has a demand for the aromatic rice variety of up to 30 million tonnes per year.
If the idea is successful, it will create significant cash for farmers and supply chain partners.
Basmati rice is more expensive than Jasmine rice, Thailand’s hallmark rice crop, due to lower yearly output. As a consequence, it is an excellent endeavour to promote Basmati growing as an alternative crop in the country.
There are still problems to be answered, such as whether Thailand can truly produce high-quality Basmati rice and, if so, if Thai Basmati production is competitive enough.
Thailand’s rice productivity and competitiveness have been a source of contention, especially in Jasmine cultivation. Several critical issues remain unresolved, threatening the long-term competitiveness of Thai rice production and exports.
They include severe global market rivalry, low productivity, and a lack of progress in generating high-yielding rice cultivars. Thailand looks to have the lowest average output for rice production (465kg per rai) among its rivals. Vietnam has a yield of 934kg per rai, Indonesia has a production of 765kg per rai, India has a yield of 643kg per rai, China has a yield of 1,128kg per rai, and the United States has a yield of 1,363kg per rai.
Due to poverty concerns, all governments have spent a substantial amount of money to support farmers, but no government has concentrated on boosting rice strain research and development, which is a sustainable strategy to help farmers escape poverty.
Despite being the world’s second-largest rice exporter, the Thai government has spent just a tiny amount of money on rice research and development each year.
Given that the Thai rice sector is also threatened by sluggish development and climate change hazards, further R&D activities are required to safeguard the country’s rice production and exports’ sustainability.
Some Basmati crops were reportedly grown in Thailand 20 years ago, but they were unable to be sustained owing to a lack of competition and marketing methods.
And how can Thai Basmati compete with Indian Basmati, which accounts for 65-70 percent of the global Basmati export market, with Pakistan accounting for the remainder?
The government should not encourage farmers to plant Basmati rice unless they have a thorough grasp of the rice variety’s characteristics and, more significantly, effective marketing techniques.
The fundamental question that the government must solve before expanding Basmati production in Thailand is how Basmati crops in Thailand can be grown productively to assist farmers achieve a competitive edge.