Cambodian fragrant rice undercuts Thai Hom Mali by $400 a tonne as US buyers switch

Cambodian fragrant rice is being offered to export buyers at around $800 per tonne, some $400 below Thai Hom Mali, and American importers are shifting orders accordingly. The gap between the two origins used to be about $50 per tonne. Thai rice exports fell 19% in the first half of 2026, according to figures from the Thai Rice Exporters Association.

A $400 spread in the premium segment

Thai Hom Mali is currently quoted at $1,200-1,250 per tonne, while Cambodian fragrant rice is offered at about $800. Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said competition in the fragrant rice market, particularly in the United States, needs to be watched closely. Thai Hom Mali exports have fallen by roughly 20% over the past seven to eight months, he said, mainly because the Thai product is priced well above comparable rice from competing origins.

The size of the discount has pushed some importers to switch to Cambodian supply. In several markets, according to Chookiat, Cambodian rice is subsequently repacked and sold under the Thai fragrant rice name. The shift is putting pressure on Thailand's market share in the United States, China and parts of Europe.

Border closures redirected Cambodian grain

One driver Chookiat identified is the closure of border crossings between Thailand and Cambodia. Around 500,000 tonnes of Cambodian paddy were previously shipped into Thailand each year to be milled and re-exported. With the crossings shut, that trade has been disrupted, and Cambodian companies have expanded direct exports to overseas markets, adding further price pressure on Thai fragrant rice.

Volumes and revenue both down

Thailand exported 3.28 million tonnes of rice in the first six months of 2026, down from 4.04 million tonnes a year earlier, according to the Thai Rice Exporters Association. Export revenue came to $1.911 billion, a decline of 20.51%, equivalent to about 60.387 billion baht. Performance by destination diverged sharply:

• United States: largest market by value at 12.489 billion baht, with volume down 13%
• South Africa: second at 6.247 billion baht, down 10%
• Malaysia: up 201% to 3.908 billion baht
• Philippines: up 85% to 3.780 billion baht
• China: down 48% to 2.945 billion baht

White rice under the same pressure

Thai 5% broken white rice is quoted at around $440-450 per tonne. Comparable Vietnamese rice is offered at about $420, Pakistani at about $395 and Indian at about $350. Chookiat argued that Thai rice retains an advantage in quality and delivery reliability despite the higher price. Some importers remain concerned about the quality of Indian rice and its on-time delivery, he said, while buyers in the Philippines and Malaysia continue to value Thai quality and generally avoid older Indian cargoes.

Chookiat expects demand from the Philippines, Malaysia and African markets, particularly South Africa, to support Thai shipments in the final months of the year and partly offset both intensifying price competition and a sharp decline in sales to Iraq. Barring further geopolitical setbacks or global market volatility, he said, Thai rice exports in 2026 could still come close to the 7 million tonne target. Thailand is expected to remain the world's third-largest rice exporter, after India and Vietnam.