The Thai Rice Exporters Association has urged the government and the Bank of Thailand to take immediate and practical measures to stabilize the baht, aiming to safeguard the competitiveness of Thai rice and farmers’ incomes.
Charoen Laothammatas, president of the association, emphasized that swift action is necessary to prevent the baht from becoming excessively strong. He called for currency adjustments to more competitive levels while maintaining stability and reducing volatility.
“If no prompt measures are taken, a strong and volatile baht will damage Thailand’s global competitiveness in rice exports and negatively impact farmers’ earnings,” he warned.
This year, the baht has appreciated by over 7% against the US dollar, while currencies of other major rice-exporting countries like India, Vietnam, and Pakistan have depreciated. This has resulted in a notable exchange rate gap of more than 10 percentage points compared to Thailand, he explained.
Mr. Charoen pointed out that if Thai, Indian, Vietnamese, and Pakistani exporters all sell white rice at the same price of US$350 per tonne, the earnings in local currency would differ significantly. Competitors could earn between 1,000 and 1,250 baht more per tonne than Thai exporters, creating a disparity that diminishes farmers’ income—not because Thai rice is cheaper, but because of unfavorable exchange rates.
As global demand wanes amid rising rice prices, the impact is felt directly by farmers, especially with the upcoming harvest season. A continued decline in foreign demand could lead to a substantial drop in domestic rice prices.
Mr. Charoen also noted that the baht recently appreciated by 2% in a single day, causing exporters to hold back on selling while buyers seek more favorable exchange rates elsewhere.
“We need stability in the baht,” he stressed. “Exporters often wait 1-3 months to receive payments. If we sell rice today at an exchange rate of 31 baht per dollar, and the baht appreciates to 30 per dollar in three months, we will suffer losses.”
He further expressed concern over India’s plan to release approximately 20 million tonnes of rice into the global market, which could add to market pressure.
According to the Department of Foreign Trade, Thailand’s rice exports reached 4.30 million tonnes in the first seven months of 2025, marking a 25.1% decrease compared to the same period last year. Export value totaled 86.4 billion baht (around $2.59 billion), down 35.4% year-on-year.
The decline was attributed to increased global rice production, notably from India, which has resumed exports and is projected to produce over 150 million tonnes this year. Meanwhile, demand from key importers such as Indonesia and the Philippines has also decreased. Volatility and appreciation of the baht have added further pressure on rice exports, the department stated.