A stronger baht could reduce the volume of Thai rice exports to 7.5 million tonnes this year from a previous target of 8 million, the Thai Rice Exporters Association said on Wednesday.
“The exchange rate is a crucial factor … and has increased the price of Thai rice by $40 to $50 (per tonne),” said Chookiat Ophaswongse, honorary president of the association.
“Prices are reaching $490 and $495 (per tonne) and when it jumps, customers will go quiet and competition will intensify,” he said, 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.
“Even though there is foreign demand, customers will buy from others due to the price,” said Mr Chookiat.
The baht has gained about 13% against the US dollar since October and is currently trading around 33.10 to the greenback.
Thai rice exports last year were estimated at around 8 million tonnes. The country benefited in part from export curbs imposed by India, the world’s top rice exporter, in order to shore up local food security.
Authorities in Delhi are now considering removing some of those curbs as domestic prices have stabilised and government stockpiles are adequate to meet the needs of welfare programmes, sources told Bloomberg earlier this month.
