Weak Thai baht and low prices boost rice exports

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Mr. Chookiat said he is bullish about Thai rice export prospects for the remaining months of 2021, after they reached only 2.8 million tons in the first seven months, an average of 400,000 tons a month. This is below the export target average of 500,000 tons a month, or 3.5 million tons during that period.

The Thai Rice Exporters Association expects Thai rice exports to continue to increase for the rest of this year, helped by the weak baht and relatively low prices.

Association honorary president Chookiat Ophaswongse said he is bullish about Thai rice export prospects for the remaining months of 2021, after they reached only 2.8 million tons in the first seven months, an average of 400,000 tons a month. This is below the export target average of 500,000 tons a month, or 3.5 million tons during that period.



He said the prices of Thai rice are currently competitive, leading importers to buy more Thai rice. The free on board (FOB) price of 5% Thai white rice is now quoted at US$380 a ton, while Indian white rice stands at US$370 a ton, and Vietnam’s similar grains at US$380-US$385 per ton. Rice exporters expect to average 600,000-700,000 tons a month over the remaining five months of the year.

Meanwhile, Thai Chamber of Commerce chairman Sanan Angubolkul said the baht’s weakness is good, not only for exports, but also for farmers who will earn higher incomes. (NNT)