Thailand seeks central budget to buy 20 million coconuts as prices collapse

Commerce Ministry expands price support for coconut growers

Thailand's Ministry of Commerce is preparing to request central government funds to buy up to 20 million cooking coconuts at above-market prices, ministry spokesman Koranit Nonjui said, as a domestic glut pushes prices for mature coconuts sharply lower. Deputy Prime Minister and Commerce Minister Supajee Suthampun has instructed the Department of Internal Trade to seek the additional budget — reported at around 90 million baht — to purchase coconuts at a market-leading price and reach farmers so far left out of existing support.

The ministry, working with provincial commerce offices in the main growing areas of Prachuap Khiri Khan, Nakhon Si Thammarat, Surat Thani and Chumphon, has already coordinated factory and trader purchases of more than 11 million coconuts against an initial target of 10 million, according to Dailynews. Of that total, Prachuap Khiri Khan accounted for 5.88 million units, Nakhon Si Thammarat for 724,000, and Surat Thani, Chumphon and other areas for 5.36 million.

Farmers left out of existing channels

Despite the volume cleared, the ministry says some farmers remain unreached because processors mostly buy through established packing-house networks and long-standing partner groups, and because importers impose standards such as GAP, a Monkey-free Certificate and traceability systems. The Department of Internal Trade has been tasked with the additional market-leading purchases alongside a survey of farmers still excluded, in order to absorb output as it reaches the market.

Imports curbed to protect domestic prices

The Department of Foreign Trade has asked importers and coconut-milk factories to suspend imports while the domestic crop comes to market, and factories have confirmed they will use domestic coconuts as their main raw material. A survey of nine processing plants found 80% of their input is domestic and only 20% imported, according to Dailynews. Director-General Arada Fuangthong said importers have agreed to clear the surplus of more than 10 million mature coconuts within July and that imports are now almost entirely paused. Deputy Director-General Duang-athit Nithi-uthai visited Prachuap Khiri Khan and Chumphon on 5-6 July 2026 to meet growers, collectors and local operators.

Coconut imports for January to May 2026 fell to 79,388 tonnes, down from 190,734 tonnes a year earlier — a decline of more than 60%, Dailynews reported; the Department of Foreign Trade cited 79,126.99 tonnes against 188,858.22 tonnes, a fall of nearly 60%. All shipments entered under the WTO out-of-quota tariff of 54%, and imports are restricted to two customs points, at Bangkok Port and Laem Chabang. The importers are largely the ten coconut-milk factories that produce mainly for export.

Supply outlook keeps pressure on prices

The Office of Agricultural Economics forecasts 2026 cooking-coconut output at 608 million units, up 2.4% on the previous year, with roughly 69 million more coconuts due to reach the market between now and August 2026 — a volume that factories and packing houses may not fully absorb. Coconut-milk exports, one of Thailand's significant coconut products, were worth more than 6,134.08 million baht in the first five months of 2026. The ministry says it will continue managing imports and promoting processing so growers can sell above production cost.