Thailand’s rice exports this year are expected to increase, from the projected 7.5 million tonnes to 8.2 million tonnes, thanks to the weakening of the baht against the US dollar, which makes Thai rice more competitive in the world market, according to Ronnarong Phoolpipat, director-general of the Foreign Trade Department.

He told the media today that Thai rice exports for the first half of this year were 5.08 million tonnes, worth an estimated 117 billion baht, an increase of 25.12% year on year.

Besides the weakening of the Thai currency, to 35-37 baht per US dollar, he attributed the export increase to higher demand for Thai rice from two major importers, the Philippines and Indonesia.

Ronnarong said that the Philippine Government has reduced import duties on rice, from 35 % to 15%, effective until 2028 to ease inflation, adding that the Philippines may import as much as 4.7 million tonnes of rice this year.

Indonesia, he said, is expected to import between 3.6 and 4.3 million tonnes, depending on domestic output, thus providing a good opportunity for Thai rice exporters.

Thanks to sufficient water for rice cultivation, Thailand’s main crop output, which is expected to be fully harvested in the final quarter of the year, looks likely to be larger than last year’s yield, said Ronnarong, adding that the higher output will reduce the price, but will make Thai rice more competitive in the world market.

He noted, however, that rice yields in the other major rice exporting countries of India, Vietnam, Pakistan, Cambodia and Myanmar, are also expected to increase this year and this means stiffer competition.

Published Date: July 30, 2024