Bangkok (VNA) – Thailand's Ministry of Commerce is stepping up measures to stabilise domestic coconut prices as rising production puts pressure on farmers' incomes while urging processors to prioritise locally sourced coconuts and curb imports during the peak harvest season.
The ministry said processors have so far purchased more than 11 million coconuts, surpassing the initial target of 10 million, with procurement concentrated in major producing provinces, including Prachuap Khiri Khan, Nakhon Si Thammarat, Surat Thani and Chumphon.
However, some farmers have yet to benefit from the programme as companies mainly source coconuts through existing suppliers and farmer groups. Export requirements, including Good Agricultural Practices (GAP) certification, monkey-free harvesting certification and product traceability, have also posed challenges to growers.
To expand support, the Department of Internal Trade has proposed using central government funds to launch an additional market-price procurement programme and extend assistance to farmers not yet covered.
According to the Office of Agricultural Economics, Thailand's coconut output is projected to reach 608 million nuts in 2026, up 2.4% from a year earlier. Around 69 million coconuts are expected to enter the market during July and August, adding pressure on processors and traders.
In response, the Department of Foreign Trade has asked importers and coconut milk producers to temporarily reduce imports and give priority to purchasing domestic coconuts.
Thailand imported 79,388 tonnes of coconuts in the first five months of 2026, down more than 60% year-on-year. Domestic coconuts currently account for around 80% of raw materials used by processing plants while imported coconuts make up the remaining 20%.
The Ministry of Commerce said it is also strengthening oversight of coconut imports, particularly shipments exceeding the World Trade Organisation (WTO) quota, which are subject to a 54% tariff, to balance the raw material needs of processors with the interests of domestic growers./.
