December 8, 2006

Thailand's shrimp industry suffers from currency woes

Thailand's shrimp export industry could lose millions of dollars if the Thai currency continues to rise, Somsak Paneetatyasai, president of Thai Shrimp Association, said Thursday (Dec 7).

He said if the baht stayed at its current level early next year, shrimp export value would hover at 100 billion baht (US$281 milllion).

He urged the central bank to address the issue as the currency's volatility is making it difficult for exporters to set prices. The strengthening Thai baht has dented Thailand's competitiveness, Somsak said.

In the first 10 months of this year, shrimp export rose 25.13 per cent to 286,536 tonnes. The value worth Bt71.38 billion marked an increase of 22.86 per cent. For the entire year, the volume and value are expected to be 340,000 tonnes and at least Bt80 billion, respectively.

Thailand's agriculture ministry is estimating the damage wrought by the currency on the farm sector, particularly on rice, shrimp and chicken, Agriculture Permanent Secretary Banphot Hongthong said.

In the current situation, exporters may shift the burden to farmers by forcing down the prices offered to farmers, he said.