Last year farmers benefited from soaring fruit prices, while exports surged thanks to promotion efforts among trading partners.
Prices of durian grade AB in the eastern region rose 21% year-on-year, reaching an average price of 181 baht per kilogramme, while durian from the southern region jumped 50% to an average price of 180 baht per kg.
Export-grade mangosteen from southern provinces skyrocketed by 146% to 90.95 baht per kg, while mangosteen from the eastern region increased by 46% to 89 baht per kg.
However, prices have slumped this year, and farmers want support measures to navigate this difficult period.
Why are fruit prices declining this year?
Prices for fruit dropped substantially this year, attributed to a large uptick in supply and a few varieties being of lower quality, said Wittayakorn Maneenetr, director-general of the Department of Internal Trade.
"There is an oversupply for domestic consumption, with several fruit varieties entering the market simultaneously, including durian, mangosteen and rambutan from the eastern region, as well as mangoes and lychees from the northern region," he said.
"In addition, imported varieties continue to arrive, offering domestic consumers a diverse selection."
Fruit prices are mostly influenced by the quality and available quantity at a given time, said Mr Wittayakorn.
Most fruit has a limited shelf life, and production is largely concentrated in specific regions, with availability lasting only 7-10 days after harvest.
These limiting factors often lead to a glut in primary production markets, which struggle to accommodate the entire volume, resulting in prices plunging.
In addition, many farmers are small-scale producers who may struggle to consistently deliver high-quality produce that meets the market's evolving demand, he said.
Another factor contributing to the price slump is the expansion of fruit cultivation into areas beyond traditional production regions, which significantly increases the supply.
However, quality management for this new produce is often inadequate, which puts downward pressure on market prices, said Mr Wittayakorn.
He said 70-80% of the annual yield is typically designated for export, targeting key markets such as China, Southeast Asia, South Korea, Japan, and the European Union.
These international markets play a vital role in shaping fruit prices. High-quality fruit that meets international standards tends to fetch premium prices.
However, Mr Wittayakorn said exporting fruit can be difficult because of non-tariff barriers, unclear international standards, high export costs, and logistical hurdles such as container shortages and rental fees during peak seasons.
Furthermore, economic conditions in importing countries impact the demand for Thai fruit, he said.
Factors such as slower economic growth, declining consumer purchasing power, and increased operational costs for importers can all affect export volumes.
What are the current government measures to support farmers?
The Commerce Ministry rolled out fruit management measures for this year, outlining strategies and action plans aimed at managing a hefty 950,000 tonnes of fruit.
These strategies encompass the entire supply chain and include fostering confidence in production quality, increasing domestic markets, expanding into international markets, enhancing Thai fruit standards, promoting processing, improving cultivation areas, addressing trade barriers, and facilitating trade procedures.
To support exports, the ministry set up a "war room" and is collaborating with Thai trade attachés in China to accelerate trade negotiations.
Domestically, initiatives include hosting events such as Thai fruit festivals to encourage local consumption, partnering with retail chains to sell surplus fruit, and facilitating direct sales from farms to consumers to cut down on middleman costs.
There is also a push to promote processed products, such freeze-dried durian and dried longan, as well as support for online sales platforms that offer subsidised packaging and free delivery.
What does the private sector want from the government?
Sanchai Puranachaikiri, president of the Thai Fresh Fruit Traders and Exporters Association, said the fruit industry in the eastern region is stabilising, with more than 50% of durian and around 40% of mangosteen harvests already sold.
Despite this positive trend, concerns remain regarding fruit from the northern and northeastern regions, particularly mangoes.
This year, the prices of nam dok mai and chok anan mangoes have plummeted, averaging between 6-10 baht per kg at the farm gate.
In addition, longans are expected to come to market by July.
He said while market mechanisms are functioning, the private sector is urging the government to implement clear intervention measures for more effective management of the fruit supply chain.
"Timing is crucial, as interventions should be made during genuine periods of oversupply," said Mr Sanchai.
"We also need to clearly identify where these interventions should take place."
He suggested the government could help by subsidising transport costs for businesses to purchase fruit from areas suffering from oversupply, helping to distribute it to other regions.
For example, transporting fruits from the northern region to the south could be facilitated by such a subsidy.
Supporting the movement of 1 million kg of fruit with a subsidy of 4 baht per kg during a market glut would total only 4 million baht, said Mr Sanchai.
This approach would enhance the purchasing power of traders during oversupply periods, contributing to better domestic sales and increased exports, he said.
Furthermore, Mr Sanchai suggested the government promote the consumption of Thai fruit among local consumers through targeted campaigns.
