BANGKOK – Thailand’s rice exports for January were at 805,519 tons, up 75.2 percent from a year earlier, helped by year-end orders, higher demand from the Middle East and a weak baht currency, the Commerce Ministry said on Monday.
The value of rice exports rose 78.76 percent to 14.28 billion baht ($406.72 million) in January year-on-year, Ronnarong Phoolpipat, head of the ministry’s foreign trade department, told a news conference.
“Rice exports in January increased by a shocking rate,” he said, adding the ministry’s trade promotion efforts also helped.
However, the ministry is sticking to its rice export target of 7.5 million tons this year as it wants to monitor the baht before deciding whether to revise the target, he said.
Earlier this year, the ministry lowered its export target for 2023 from 8 million tons to 7.5 million tons as the baht, which dropped as much as 13 percent against the dollar in October last year, appreciated.
“The exchange rate is a crucial factor … and has increased the price of Thai rice by $40 to $50,” Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, told Reuters.
“Prices are reaching $490 and $495 (per ton) and when it jumps, customers will go quiet and competition intensifies,” said Chookiat, adding that were no issues with supply.
Thai rice export prices reached their highest levels in nearly two years last week due to the strong baht and demand.
The baht has appreciated 5 percent against the dollar since the start of the year.
The country’s central bank previously said the strengthening of the local currency was due to an earlier than expected re-opening of China.
“Even though there is foreign demand, customers will buy from others due to the price.”
The baht has weakened again, by 1.5 percent against the dollar so far this year, becoming Asia’s third-worst performing currency.
Thailand is the world’s third-largest rice exporter after India and Vietnam.
Thailand exported 7.69 million tons of rice in 2022, up 22.1 percent from a year earlier, beating a target of 7.5 million tons, with top markets being Iraq, South Africa, China and the United States. — Reuters
