Bangkok: The Commerce Ministry has unveiled an initiative to bolster coconut prices by seeking central government funds to purchase cooking coconuts, aiming to enhance market share and provide support to marginalized farmer groups.
According to Thai News Agency, Deputy Prime Minister and Minister of Commerce, Supajee Suthamphan, has directed the Department of Internal Trade to address the coconut shortage by coordinating with factories and wholesalers in four major coconut-growing provinces. While over 11 million coconuts have been sold, surpassing the initial target of 10 million, inspections indicate some farmer groups remain underserved. To remedy this, the Department of Internal Trade will request central funds to procure additional coconuts at above-market rates, ensure comprehensive farmer support, and regulate coconut imports to prioritize domestic production.
Mr. Kornnit Nonchui, spokesperson for the Ministry of Commerce, detailed that the Ministry, in conjunction with local commerce offices in regions such as Prachuap Khiri Khan, Nakhon Si Thammarat, Surat Thani, and Chumphon, has facilitated the continuous purchase of cooking coconuts from farmers. The initiative has resulted in substantial procurement across these areas, including 5.88 million coconuts from Prachuap Khiri Khan alone. However, limitations such as existing wholesale networks and import standards have impeded assistance to all farmer groups, prompting the Ministry to push for government funding to address these gaps.
In response to the current import situation, the Department of International Trade has secured commitments from importers and coconut milk factories to prioritize domestic coconuts as raw materials during periods of ample local production. A recent survey revealed that 80% of raw materials used by coconut processing plants are sourced domestically, with a significant reduction in imports noted in early 2026. The Department remains vigilant in monitoring factory imports to ensure compliance with WTO tariff regulations.
Mr. Kornnit emphasized the Ministry's commitment to sustaining cooking coconut prices by securing central government funds, regulating imports, and enhancing product value through processing. Collaborative efforts with the Ministry of Agriculture and Cooperatives, academic institutions, and financial bodies are underway to address long-term supply chain challenges, focusing on cost reduction, production efficiency, and export standard accessibility for farmers.
The Office of Agricultural Economics projects a 2.4% increase in cooking coconut production in 2026, equating to 608 million coconuts. With production commencing in June, the Ministry has proactively established measures to support farmers in achieving profitable sales and comprehensive assistance as the market absorbs an additional 69 million coconuts by August 2026.