The rice exporter association and the National Food Institute have urged the government to address the baht's appreciation for fear of adverse impact on the export of food and agricultural products.

President of Thai Rice Exporters Association, Chukiat Opaswong, said exporters are concerned about the baht's value after it has appreciated by more than 10 percent, which is higher than currencies of trade competitors, such as Vietnam, India and Singapore.

He commented that if the baht continues to strengthen, it may result in a fall in fourth-quarter export of food and agricultural products, such as rice, tuna and tapioca. Besides, the stronger the baht is, the higher is the chance that traders will delay or cancel their purchase orders.

As with the rice prices, the stronger baht has brought the price of jasmine rice up from 950 dollars per ton to 1,100 dollars and five-percent white rice from 524 dollars to 530 dollars. In comparison, Vietnamese white rice is selling at a relatively lower price of 400 dollars a ton.

In the meantime, Yutthasak Supasorn, director of the National Food Institute, also expressed concern over the baht's strengthening and called on the government to take measures to help stabilize the Thai currency.

He asserted that the exchange rate of 36 to 37 baht to the dollar is conducive to export.

As for today's exchange rate, the baht is hovering around 33.68 to 33.70 against the dollar, slightly stronger than Friday's. It is speculated that the rate will remain at the level, given no further factor is expected.

Source: TANN