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Strong baht, low production pull down Thai rice exports


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Strong baht, low production pull down Thai rice exports

By The Nation

 

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Thailand’s rice export this year is expected to drop from 7.5 million tonnes worth Bt130 billion last year to 5 million tonnes worth Bt115 billion, honorary president of the Thai Rice Exporters Association Chookiat Ophaswongse said.

 

He attributed the drop to the strengthening baht and low rice production.

 

The price of Thai white rice is currently around US$490 per tonne, compared to Vietnamese white rice at $460 per tonne, Indian at $370 per tonne and Myanmar at $420 per tonne.

 

White rice accounts for 50 per cent of Thailand’s total rice exports.

 

He said Malaysia has only purchased 40,000 tonnes of Thai white rice this year, compared to its usual 400,000 tonnes per year, adding that it has switched to rice from Vietnam, India and Myanmar instead.

 

Meanwhile, the Philippines has imported 1.8 million tonnes of rice this year, 1.7 million tonnes of which came from Vietnam and only around 60,000 tonnes came from Thailand. Previously, Thailand used to export around 500,000 tonnes of rice to the Philippines.

 

Separately, Thailand has exported 4 million tonnes of rice in the first nine months of this year, averaging at between 300,000 and 400,000 tonnes monthly. If it wants to achieve the goal of exporting 6.5 million tonnes this year, then it will have to sell at least 500,000 tonnes monthly, which he said is difficult to achieve.

 

Source: https://www.nationthailand.com/business/30395518

 

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-- © Copyright The Nation Thailand 2020-10-05
 
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Last year was so dry year ,now in our area look much better. Maybe even this year leave something to sell. Last year almost 50 % of rice died. I have never understand why coverment want keep BTH strong, that is not help this economy! But my friend was happy after sell hes house he get almost 40% profit when chance back to €!

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Not to bad, actually. I mean just look at the difference 1/3 less rice sold but the price has not gone with 1/3. Actually they have sold rice at a price 32% higher as the year before. Its far less bad then its looks. Sure its a drop in exports but not that bad given the rice price that went up.

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Just now, hotchilli said:

Price is everything when quality is equaled in other countries, the baht strength has a lot to answer for.

Sure but they got a 32% higher price for the rice they sold. So i don't think its that bad. 12% down the export but price up 32%. 

 

Still i know that everyone including me would like a weaker baht.

 

 

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5 hours ago, charmonman said:

With lower exports, and the almost complete death of one of its major if not its largest industry (tourism) shouldn’t the currency be weak? Where is the demand for Thai currency coming from if no one outside Thailand wants or is able to buy Thai products and services?

Largest industry in Thailand is manufacturing. It is about 50% of GDP. Tourism is around 12% or so according to latest data of 2019. Thai baht is strong because Thailand doesn't print money. In contrast, US, EU, GB, Japan are all printing money like crazy, which makes those currencies less valuable and naturally makes Thai baht stronger. And Thai baht is backed up by gold. US dollar is just a paper with number on it.

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On 10/5/2020 at 12:15 PM, ozz1 said:

the hi so in bangkok think because it comes from thailand it will sell but it all comes down to price

I have noticed that Thai Jasmine Rice here in NZ does not taste anywhere near what is was like a few years ago.

Also I wonder about all those pigeons sitting on the storage buildings, pooping everywhere, they must get inside as well.

Maybe the rice is getting a bit stale.

Then there is the good old Thai BAHT which has been held high to long----anddd Somkid walked way from the government, he was a smart cookie he was Thaksin's finance minister this mob asked him to work for them, hes walked away now probably in disgust.

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