Rice exports will increase due to weak Thai currency
Thailand's rice exports are expected to rise from 7,5 million tonnes to 8,2 million tonnes this year, partly due to the weakening of the baht against the dollar. This price drop makes Thai rice more competitive on the world market. The first half of this year already saw exports of 5,08 million tons, worth 117 billion baht, an increase of 25,12% year on year.
Discover Thailand (17): the Economy
Thailand's economy is one of the strongest and most diverse in Southeast Asia. The country is the region's second largest economy after Indonesia and has a growing middle class. Thailand is a major exporter of goods such as electronics, vehicles, rubber products and agricultural products such as rice and rubber.
Thai rice exports lowest in 10 years
Thai rice exports are expected to stall at 6,5 million tons this year, the lowest volume in the past 10 years, according to the Thai Rice Exporters Association.
The outlook for Thailand's rice exports in the second half of this year looks bleak as the pandemic has bankrupted Phoenix Commodities, one of the world's largest agricultural commodities traders with offices in Dubai and Singapore.
Thailand exports less and less rice
Thailand risks losing its position as the world's second largest rice exporter this year. The Thai Rice Exporters Association expects Vietnam to take second place. This is due to higher production costs than the competitor, a lack of rice varieties to meet the changing market demand, unfavorable exchange rates and the drought.
Thai rice exports under pressure
The Thai Rice Exporters Association expects rice exports to be 14 percent lower this year than in 2018, the biggest drop in four years. Thailand, the second largest rice exporter in the world, sold 11 million tons of rice to countries around the world last year.
Prime Minister Prayut Chan-o-cha predicts that Thailand will again be the world's largest rice exporter next year, a position it lost to India and Vietnam two years ago. Thailand has already regained its lead in ASEAN, he says.