Bangkok: The Food Trade Association is raising concerns over the strong baht’s impact on the industrial supply chain, urging the government and the Bank of Thailand to take immediate action.
According to Thai News Agency, the Thai Future Food Trade Association highlights the challenges posed by the baht’s continued appreciation, which affects the competitiveness of Thai businesses in the global market and the incomes of farmers, producers, and operators across the Thai future food industry value chain.
Mr. Wisit Limluecha, President of the Thai Future Food Trade Association, notes that since early 2025, the baht has appreciated over 7%, while competitors like China, India, Vietnam, and Singapore have seen their currencies weaken against the US dollar. This has led to a widening exchange rate differential, resulting in higher costs for Thai future food products compared to competitors, despite the products meeting international standards. The strong baht could drive international buyers toward competitors with lower costs, leading to lost market opportunities for Thai businesses and farmers.
Entrepreneurs and exporters face losing foreign orders due to an inability to compete on price, even when product quality is satisfactory. Farmers and raw material producers may experience a decrease in domestic demand, leading to reduced prices for related agricultural products. Investment in research and technology, crucial for developing future food groups, could be delayed if income declines, affecting product development.
The Thai Future Food Trade Association urges the government and the Bank of Thailand to implement concrete measures to address the baht’s strengthening. Recommendations include maintaining exchange rate stability, supporting Thai future food exports through financial assistance, promoting farmer strength, and negotiating international trade to open new markets.
This issue is deemed urgent as the current baht strength and currency fluctuations could undermine Thailand’s competitiveness in the global future food market, affecting incomes across the production chain. Without timely measures, Thailand risks losing its competitive edge and missing the opportunity to become the region’s future food hub.