BANGKOK- Thailand cut its rice export target for this year to 7.5 million tons from a previous target of 8 million tons due a stronger baht, the exporter’s association said on Wednesday.
“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.”
Thailand’s economy remained on the recovery path in November, boosted by increased tourism and domestic consumption while exports deteriorated as global demand slowed, the central bank said. — Reuters
