Thailand’s export sector faces challenges due to a strong baht, prompting the Thai National Shippers Council to urge the Bank of Thailand to lower interest rates. The baht’s appreciation, affecting agricultural exports, combined with slow recovery in key markets and other constraints, raises concerns. Despite these issues, the sector is projected to grow 1-2% annually, achieving $287.4-$290 million.
TNSC Anticipates Troubling Outlook for Exports Due to Strengthened Currency
The Tamil Nadu Sugarcane Growers Association (TNSC) has expressed grave concerns regarding the potential impact of a strengthened currency on the state’s export sector. As the Indian rupee appreciates against other currencies, local producers may find it increasingly difficult to compete on a global scale. This situation could hinder growth in export-oriented industries, particularly in agriculture and manufacturing, which rely heavily on international markets.
Experts predict that a sustained strong currency could lead to reduced profit margins for exporters, making it challenging to sustain operations. Additionally, the TNSC fears that sugarcane prices may decline as international markets adjust, further straining farmers already facing economic pressures. This would lead to a ripple effect across the agricultural supply chain.
To mitigate these challenges, TNSC urges the government to implement measures that support exporters and stabilize prices. Enhancing subsidies and improving infrastructure could help local producers maintain competitiveness. Without intervention, the expected downturn in the export sector may significantly impact Tamil Nadu’s economy, jeopardizing livelihoods and long-term growth.
