Thailand forecasts a decrease in rice exports in 2026 due to a strong baht.

This year, the baht has surged by 10.5% against the US dollar, reaching its highest level in over four years and becoming the second-fastest appreciating currency in Asia. The baht’s sharp appreciation poses challenges for Southeast Asia’s second-largest economy, which is already grappling with numerous challenges including US tariffs, high household debt levels, border conflicts with Cambodia, and political instability ahead of elections expected early next year. The incoming government will need to address the situation of declining domestic rice prices amid farmers’ demands for stronger support. At a press conference on December 27, Arada Fuangtong, Director-General of the Foreign Trade Department of the Thai Ministry of Commerce warned that rice exports next year will face significant difficulties due to intense price competition. “If the baht continues to appreciate, it will be a major challenge for Thailand’s agricultural products,” she said, noting that the baht is ...