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Baht's Strength Hits Rice Exports as Prices Surge

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File photo for reference only

 

Thailand's November 2025 exports grew by 7.1% to US$27.445 billion, marking a 17th consecutive month of expansion, according to the Trade Policy and Strategy Office (TPSO). Imports were higher at US$30.172 billion, leading to a trade deficit of US$2.726 billion. Excluding oil, gold, and military supplies, exports saw an increase of 11.8%, largely driven by electronics and industrial goods.

 

The growth in electronics shipments has been attributed to developments in computer technology and AI, maintaining a strong performance in industrial exports. However, geopolitical uncertainties and a slowdown in key markets, such as China and Japan, pose challenges. Additionally, Thai agricultural exports declined due to natural disasters and competition.

 

For 2025's first 11 months, exports grew by 12.6%, while imports rose 12.4%, resulting in a US$4.956 billion trade deficit. US trade saw a surplus with exports at US$6.468 billion. Conversely, a deficit occurred with China, where imports stood at US$9.447 billion.

 

Agricultural exports dropped by 15.7% in November, continuing a contraction trend with key products like rice and rubber declining. Nantapong Chiralerspong of TPSO estimates December exports at around US$25 billion, projecting full-year exports at US$335.707 billion, a 11.6% increase.

 

Looking to 2026, expected export growth is between -3.1% to 1.1% due to a weaker global economy and tariffs. The Ministry plans to focus on trade agreements and negotiations to counter weak demand. Chookiat Ophaswongse highlighted the baht's appreciation as a challenge for rice exports, with Thai rice priced higher than competitors.

 

Chookiat warned that high prices might impact orders, especially in the US market, where Thai rice is considered too costly. He emphasized the need for government measures to stabilize the baht to support exports.

 

Visit Limlurcha of the Thai Chamber of Commerce noted that SMEs risk increased losses without currency hedging. While electronics drive growth, agriculture and food sectors face difficulties. Looking ahead, a minimum 5% growth target for 2026 is set to ensure business viability, particularly for electronics and AI-related exports, reported The Nation.

 

Key Takeaways

  • Thai exports increased 7.1% in November, but a trade deficit persists.
  • Electronics drive growth; agricultural exports face declines.
  • Strong baht impacts competitiveness, prompting calls for government intervention.

 

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image.png  Adapted by ASEAN Now from The Nation 2025-12-26

 

 

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Of cours ein money no problem, but in kilos's and new contracts it will be another thing.. If you pay more because the the exchange rate is too high doesn't mean that you are really better off... less kilos for highe rprice looks fine but when the THB exchange is going back to normal, the damage will become visible.

I don't eat a lot of rice, and my Thai wife buys Australian rice 

15 hours ago, snoop1130 said:

 

 

9 hours ago, still kicking said:

 

 

15 hours ago, snoop1130 said:

Chookiat warned that high prices might impact orders, especially in the US market, where Thai rice is considered too costly. He emphasized the need for government measures to stabilize the baht to support exports.

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High   prices  of  Rice , even with a premium for Jasmine , is the joke of the day..and the US cant afoord the next joke

 

Rice Prices are at the lowest  over 20 year chart , and this is even not inflation adjusted. Rice is one of the worth commodities of all time.The price is highly impacted and controlled by worldbank , high  rice prices would leed to social unrest  in developing countrys and their slavery work force , working for a dollar

 

hahaha   rice prices to high

 

https://tradingeconomics.com/commodity/rice

Every other day an article about the THB strength , yet nothing happens.

If the BOT wants , it can sell THB for other currencies and weaken it,

but it won't.

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