According to a report [3] by Thai media outlet ASEAN Now, the farm-gate price of Thai aromatic (Nam Hom) coconuts [4] has plunged to 1–2 Thai baht ($0.03–0.06) per fruit, pushing many growers to the brink of bankruptcy. Thailand’s Ministry of Commerce is accelerating measures to address this price slump, including strengthening domestic procurement, expanding exports and investigating foreign-owned packaging plants suspected of distorting the market.

Commerce Minister Suphajee Suthumpun stated that the relevant agencies had been instructed to provide urgent support to farmers and related businesses. These measures have been in place since July 2025 to help stabilize the market.

Domestically, Thailand’s Department of Internal Trade has intervened during three rounds of price declines, purchasing more than 1.29 million coconuts between July and December 2025 and setting a new target to procure an additional 1 million coconuts starting in late January.

Authorities have also established procurement points offering guideline prices in major coconut-producing provinces, expanded sales outlets in Bangkok and surrounding areas, promoted distribution through trade fairs and modern retail channels, and coordinated with companies to purchase directly from farmers. Coconuts are also being sold through gas stations and online platforms to broaden consumer access.

Despite surging global demand for Thai coconut water, growers have reported seeing limited benefits from this export growth. Industry sources attribute the shrinking profits to foreign investors, particularly those from China, who are said to operate through local nominee companies and now control much of the supply chain.

In Ratchaburi province and several other major production regions, factories funded by foreign investment have expanded rapidly. Reports indicate that these companies are leasing plantations, building processing facilities and managing their own logistics networks. Industry insiders have warned that local Thai companies face the risk of being pushed out of the market unless protective measures are put in place.

According to a report [5] by the Pattaya Mail, to diversify export destinations and reduce reliance on the Chinese market, the Department of International Trade Promotion is actively expanding into markets in the Middle East, Europe and the United States. A business-matching event for fresh fruit and processed agricultural products took place in Bangkok in early March, which was expected to involve more than 100 exporters, including dozens of coconut exporters.

Meanwhile, Thailand’s coconut imports are regulated under the frameworks of the World Trade Organization and the ASEAN Free Trade Area. Imports are limited to two designated ports of entry and must comply with stricter documentation requirements to prevent negative impacts on Thai growers during peak harvest periods.

The Thai government is also investigating coconut packaging plants suspected of operating as nominee companies in violation of the Foreign Business Act. Furthermore, the Ministry of Commerce is promoting geographical indication registration to increase product value.

To date, four aromatic coconut products have obtained GI status, including Nam Hom coconuts from Ratchaburi province, which were recently approved as a GI product in the European Union.

Image: Pixabay

This article was translated from Chinese. Read the original article [6].