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Thailand boosts buying and exports to support coconut prices

Thailand's Commerce Ministry is accelerating measures to address falling aromatic coconut prices through domestic absorption, export diversification, and inspections of packing facilities.

Commerce Minister Suphajee Suthumpun said agencies have been instructed to provide support to farmers and related businesses, with measures implemented since July 2025.

On the domestic side, the Department of Internal Trade intervened during three periods of price declines, absorbing more than 1.29 million coconuts between July and December 2025. Since late January, a new target of 1 million additional coconuts has been set. Lead-price procurement points have been opened in key production provinces, while sales outlets have been expanded in Bangkok and surrounding areas. Distribution has been promoted through trade fairs, modern retail channels, fuel stations, and digital platforms. Authorities have also coordinated direct purchases from farmers by private companies.

To diversify export markets beyond China, the Department of International Trade Promotion is expanding outreach to the Middle East, Europe, and the United States. A business matching event for fresh fruit and processed agricultural goods is scheduled for early March in Bangkok, with more than 100 exporters expected to participate, including coconut exporters.

Coconut imports are being managed under the WTO and AFTA frameworks. Imports are restricted to two designated ports and are subject to stricter documentation requirements to limit impacts on domestic producers during peak harvest periods.

Authorities are investigating coconut packing facilities suspected of operating as nominee businesses in violation of the Foreign Business Act.

The ministry is also promoting geographical indication registration to support value differentiation. Four aromatic coconut products have been registered domestically. Ratchaburi's Nam Hom Coconut has been approved for geographical indication status in the European Union.

Source: Pattaya Mail

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