There was a time when Thailand was considered the biggest exporter of rice but due to the scheme of subsidizing the farmers, now it has lost its place in the world. (Political reasons were there for the disastrous support scheme) There was great paddies lose equaling to the value of US$2 in the warehouses. Program was put into effect in 2011. Prime-minister faced a great rebel from the peasants of that place. Now the traders have shifted towards commercial markets. The Govt. wanted to grasp the loyalty of the farmers and wanted then to make their vote bank but unfortunately this could not happen and the things turned on the flip-side. In year 2011 US production fell down and Thailand got the benefit but not Thailand absence from the market is proving dangerous for them and is making it tough for Phew Thai govt. to stand in the market.
Thailand has become a great exporter of rice since year 1932 and has exported nearly nine million in year 2009. Now the quality of the Thai rice has been deteriorated due to improper arrangements of warehousing and the extra storage of the rice. this is the reason we can say Political reasons were there for the disastrous support scheme not the economic one. Now Govt. has to sell it at low cost and would not be able to gain more by exporting it. Now India is leading by pushing Thailand into second place and is slightly ahead of Vietnam and is exporting rice grain of nearly 6.72 million tonnes in 2013 to 6.7 million tonnes for Vietnam. It is also reported that cheaper rice is smuggled and is being sold to the Govt. at high price.