Bangkok – The Thai Rice Exporters Association reports that the kingdom’s rice exports this year will be down 14% on 2018, the biggest decline in four years.
Thailand, the world’s second largest rice exporter, last year sold 11 million tons of rice to countries around the world.
The association expects the country to export 9.5 tons this year, a 14% decline year on year, the biggest drop in four years. The main factors contributing to the expected plummet are the strong Thai baht and competition from Vietnam and India.
According to the association, the Thai currency has strengthened 2.28% since early 2019, making Thai white rice 19 US dollars pricier and Hom Mali rice 60 dollars more expensive than rice from their international competitors.
The association believes that Thailand will receive fewer rice orders from Indonesia and that Malaysia and the Philippines are likely to turn to Vietnamese rice due to pricing.
The agency has now called on the administration to stabilize the Thai currency, suggesting that a rate that would allow Thai rice to remain competitive is around 33 baht per US dollar.