Thailand ‘kitchen of the world’ benefits from neighbouring countries’ export bans
- Malaysia has banned poultry exports and India has taken steps to keep more of its wheat and sugar at home; Thai producers are enjoying strong harvests this year
- Baht at all-time low, plus: ‘Thailand is unlikely to suffer from food shortages like other countries as it’s the kitchen of the world,’ industry chief said
Thailand – a major exporter of sugar, chickens and rice – looks set to benefit as many of its Asian neighbours limit shipments of agricultural commodities to shelter consumers from surging prices.
In recent days, Malaysia has banned poultry exports and India has taken steps to keep more of its sugar at home. The rising food protectionism and price rallies are welcome news for Thai producers that are enjoying strong harvests this year after back-to-back droughts. The baht’s decline to a five-year low earlier this month is also making the country’s shipments relatively cheaper.
Global food prices have surged to multi-year highs as the economic recovery from the pandemic coincided with Russia’s invasion of Ukraine, which has upended flows of agricultural commodities.
Thai food exports this year now look likely to surpass a forecast in January for a record 1.2 trillion baht (US$35 billion) made by the Bangkok-based National Food Institute.
“If the war and the food-supply crunch continue, food prices will remain high and that will benefit us,” said Sirivuthi Siamphakdee, a director of Kaset Thai International Sugar Corporation and former vice-chairman of the Thai Sugar Millers Corporation, an industry association.
“Thailand is unlikely to suffer from food shortages like other countries as it’s the kitchen of the world,” he said.