Thailand eyes Yunnan as gateway to expand agricultural exports

Thailand and officials from China’s Yunnan province held talks on Thursday about strengthening agricultural exports, particularly fruit and rice, amid concerns over potential oversupply. 

Commerce Minister Pichai Naripthaphan met with Shi Yugang, deputy party secretary of Yunnan, at the ministry’s headquarters in Nonthaburi’s Muang district. 

Pichai noted that Thailand’s durian production is projected to reach 1.76 million tonnes this year, a 37% year-on-year increase. To prevent market oversupply, he urged Chinese authorities to ease import and durian inspection processes in April and May, when the bulk of shipments arrive. He also confirmed that Thailand has resolved the Basic Yellow 2 contamination issue in durians, which had previously raised concerns among Chinese importers. 

Pichai also urged China to extend operating hours and expand inspection capacity at the Mohan border checkpoint to facilitate faster movement of products. He also urged Chinese authorities to expedite the purchase of 280,000 tonnes of rice under a prior agreement, citing Thailand’s strong supply. The minister further promoted the export of live cattle and frozen meat via China’s Guan Lei Port.

Shi Yugang, meanwhile, expressed China’s willingness to support Thai agricultural exports, particularly through the improved China-Laos railway and Guan Lei Port. He invited Thailand to collaborate with China, Laos and Myanmar on developing transportation infrastructure to streamline trade routes. 

Shi also extended an invitation for Thai businesses to participate in a major trade fair in Kunming in June, describing it as an opportunity to strengthen bilateral trade cooperation. 

According to the Department of International Trade Promotion, Yunnan serves as a key China-ASEAN trade hub, acting as China’s gateway to Southeast Asia with transport links to Thailand via Myanmar, Laos and Vietnam. 

Bilateral trade with Yunnan currently stands at US$1.84 billion (62.40 billion baht), with primary exports from Thailand being rubber goods, computers and components, fresh, frozen and dried fruits and plastic beads. In return, Thailand imports machinery and components, chemicals and home appliances from Yunnan.