Thailand Coconut Growers Press for Import Curbs

For investors and food makers, the dispute matters because Thailand is a major coconut supplier and the government’s response could affect costs across the coconut chain, from raw fruit to frozen coconut milk and processed coconut products. Growers want tighter controls on imports of coconuts, frozen coconut cream, ready-made coconut milk and other derivatives, arguing that inbound supplies are depressing domestic prices.

Bangkok has already approved a 46.6 million baht program to absorb surplus coconuts and bolster prices through Oct. 31, but farmers say the support ceiling remains too low to stabilize the market. In Prachuap Khiri Khan, officials set a reference price of 6 baht per coconut for the latest week of the absorption scheme, while processors were offered 18 baht a kilogram for dried coconut meat with 6% moisture, or 15 baht for smaller collectors.

The pressure campaign highlights a familiar policy dilemma: protect farm incomes without tightening supplies so much that food processors and consumers face higher costs. Similar tensions have played out in other edible-oil and agricultural markets, where import curbs can lift farmgate prices quickly but risk higher retail inflation later.

The growers’ next catalyst is whether the central government expands intervention, revises the support price or imposes new import controls. If it does not, the network has said it will intensify its campaign, keeping coconut prices, import policy and rural income support on Thailand’s political agenda.