June 10, 2009
Thai shrimp exports might fall 20 percent on strong baht
Shrimp exporters have expressed alarm at the continued strength of the baht, forecasting that shrimp exports could fall by 20 percent this year if the baht climbs to THB33 against the US dollar.
Thai Frozen Food Association (FFA) president Panisuan Jamnarnwej said that the private sector is feeling the sting as the baht's strength reduces Thai shrimp's competitiveness in world markets.
Jamnarnwej said Thai shrimp prices dropped by THB15 per kilogramme after the baht went 36 to 34 per dollar.
He urged the government to help manage the baht to stay at about THB36 per dollar to make products comparatively competitive.
In a bid to shore up local shrimp prices, the Department of Internal Trade and FFA have finalised guidelines for the Farmers Assistance Policy Committee, in which includes a proposal for the government to provide interest-free loans of THB1.4 billion to companies that directly purchase shrimp from farmers.
Another proposal is that the government helps compensate differences between market prices and mortgage prices.
The benchmark price for 1 kg of 60 shrimp was quoted at THB105 on Tuesday (June 9), up from THB100 last week, but it was still much lower than THB120 as quoted in April, THB128 in March, THB131 in February and THB124 in January.
US$1 = THB33.822 (June 10)
