Thailand launches plan to absorb 10 million mature coconuts as prices fall
Thailand has approved a 46.6075 million baht program to absorb mature coconuts and support farmers affected by falling prices. The plan targets 10 million fruits for sale and 500 tonnes of dried coconut meat across eight major producing provinces.
Government funding targets surplus production
Thailand’s Department of Internal Trade is moving ahead with a state-backed program to absorb 10 million mature coconuts after producer prices declined. Naewna reported that the department has allocated funding to provincial commerce offices, which will work with local farmer assistance committees to establish purchasing points in affected production areas. The objective is to remove surplus and accumulated fruit from the market, stabilize prices and raise farmers’ income.
The program has been approved for 46.6075 million baht from the Farmers Assistance Fund. Of that amount, 40 million baht is intended to support the marketing of 10 million mature coconuts. Farmers can receive management support of up to four baht per fruit, but the combined subsidy and selling price must not exceed the reference target of 10 baht for a large mature coconut. The measure covers fruit entering normal commercial channels and coconuts diverted for processing.
Old stocks will be processed into dried coconut meat
Mature coconuts that have remained in storage long enough to begin sprouting, or are otherwise unsuitable for sale as whole fruit, can be processed into dried coconut meat. The department will provide farmers and collectors with management support of up to five baht per kilogram, subject to a target price of 20 baht per kilogram. This part of the program aims to process 500 tonnes and has a budget of 2.50 million baht. The processing route is designed to reduce losses and return lower-quality stocks to commercial use.
The program covers Prachuap Khiri Khan, Chumphon, Surat Thani, Nakhon Si Thammarat, Samut Songkhram, Narathiwat, Pattani and Chonburi. Together, these eight provinces account for about 92% of Thailand’s coconut production, according to Naewna. Support for whole-fruit sales is limited to registered coconut farmers with production in participating areas. The dried-meat component is open to coconut growers or collectors holding accumulated stocks.
Purchasing scheduled through October
Purchasing will run from project approval through October 31, 2026, while the overall program period extends from August 13 to December 31, 2026. Prachuap Khiri Khan was expected to become the first province to consider implementation at a meeting on August 20, 2026, followed by other participating provinces. The Department of Internal Trade said it would monitor purchasing volumes, the distribution of collection points and local production conditions.
The department initially sought financing from Thailand’s central expenditure budget, but changed to the Farmers Assistance Fund because the budget allocation process could have delayed support. The new program follows earlier coordination with factories and collection yards in Prachuap Khiri Khan, Chumphon, Nakhon Si Thammarat and Surat Thani. Those operations absorbed more than 11 million coconuts, exceeding an original target of about 10 million. The latest measure adds another outlet for marketable fruit while directing unsaleable stocks into dried coconut meat, potentially easing near-term pressure on farmgate prices in the country’s main producing regions.
