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The Thai Rice Exporters Association has lowered its 2020 export forecast to 6.5 million tons, the lowest level in two decades that is 20 years due to the drought and the strong Baht currency, its executives said on Wednesday (July 22, 2020).
The industrial group's latest forecast for Thailand, the world's second-largest rice exporter, fell short of its seven-year low of 7.5 million tons by 2020.
The association attributed that to a persistently strong baht compared to other currencies and drought cutting Thai rice output by 5 million tons this production season, making prices higher and uncompetitive.
“The new forecast of 6.5 million tons is the lowest volume in 20 years,” said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, adding the previous low was 6.15 million tons in 2000.
From January to June, Thailand exported 3.14 million tons of rice, about a third less than the same period last year, the association’s data showed, less than India’s 4.53 million tons and the 4.04 million tons shipped by Vietnam.
Thailand’s gains from India halting logistics during lockdown and Vietnam temporarily banning new contracts to ensure domestic supply amid the coronavirus crisis would be shortlived, and balanced out by flat demand, Charoen Laothamatas, the association’s president.
“COVID-19 has made the market volatile, making importers buy more than usual earlier to stock up, but now they won’t need to for a while,” he added.
Source: Online/SZK
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