Bangkok: The Ministry of Commerce is tackling the problem of overflowing coconuts, securing factories to purchase 8.8 million coconuts and delaying imports to prioritize domestic use. The spokesperson for the Ministry of Commerce clarified the coconut price issue, stating that current production is high, but the coconuts are small due to drought. The market for grated coconut is insufficient, forcing most to go to factories. However, these factories have limited production capacity, leading to a surplus. The problem is not due to imports, which have decreased by over 60%. The ministry is preparing to assist by encouraging factories to purchase 8.8 million coconuts and has instructed factories to temporarily halt imports and prioritize purchasing domestically produced coconuts.
According to Thai News Agency, Mr. Kornnit Nonchui, spokesman for the Ministry of Commerce, revealed that the Ministry of Commerce, through the Department of Internal Trade and the Department of International Trade, held a meeting with provincial commerce offices, coconut milk factories, and related agencies to monitor the price situation of cooking coconuts, which are currently experiencing a large influx of production. The Office of Agricultural Economics forecasts a production volume of 0.852 million tons in 2026, an increase of 2.4 percent from the previous year. However, while production is still entering the market, drought has resulted in smaller coconut sizes, making them less desirable for grated coconut. Furthermore, the excess coconuts are flowing into processing plants, but these plants face production capacity limitations, leading to a surplus. As a result, wholesalers and factories are slowing down their purchases, impacting the purchase price from farmers, which has dropped to 6-7 baht per coco
nut.
Regarding farmers’ concerns about coconut imports for factories, investigations revealed that coconut milk factories use 80% domestically produced coconuts as their primary raw material, importing only 20%. Furthermore, during the peak domestic production period from the beginning of the year to the end of 2026, coconut imports totaled only 79,388 tons, a significant decrease from the 190,734 tons imported during the same period the previous year, representing a 60% reduction.
Mr. Kornit stated that to alleviate the problem of low coconut prices, the Ministry of Commerce, through the Department of Internal Trade and the Department of International Trade, has implemented measures in collaboration with coconut milk factories. A key measure is requesting factories to urgently purchase the remaining 8.8 million coconuts that have yet to be purchased, broken down as follows: 5 million in Prachuap Khiri Khan, 1.6 million in Nakhon Si Thammarat, 1 million each in Surat Thani and Chumphon, and 1.2 million from other sources. The Department of International Trade has also held meetings with importers and coconut milk factories, urging them to prioritize purchasing domestically produced coconuts. The factories have confirmed that they will begin reducing imports and will primarily use domestically grown coconuts during this period.
“The Ministry of Commerce expects these measures to help reduce unsold coconuts and allow coconut prices to gradually return to normal as soon as possible. The ministry will closely monitor the purchasing and pricing situation, and will regulate coconut imports by factories to ensure they do not affect domestic production. The ministry will also promote Thai coconut milk factories, which are exporters with recognized standards in the global market, to expand their market channels in existing and new markets. Importantly, the ministry will upgrade the production of farmers, farmer groups, and community enterprises to produce goods that meet international standards, have consistent production, and are traceable. This will enhance the competitiveness of Thai businesses in the global market,” Mr. Kornit said.