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Research: Mixed baht impact on Thai agriculture
Rice, rubber, rubber products and tapioca products are among those in the agricultural sector that have been hit the hardest by the strong baht, due to their reliance on locally-sourced raw materials and dependence on exports, according to Kasikorn Research Centre.
"These segments do not benefit from the cheaper imports and they also face foreign exchange losses from the export activities," K Research said in its research released on Friday.
Benefiting from the strong baht are those products which import raw materials and targets domestic consumers such as milk, milk products, wheat flour and wheat products.
K Research, however, noted that all agricultural products are benefiting from rising global demand due to natural disasters at many parts of the world. This leads to the higher export volume and value of Thai agricultural products.
"The positive factor could evaporate in 2008 and Thai products will face fiercer competition in the world market," it said.
While the strong baht should remain a major burden, Thai exporters are advised to reduce their reliance on US dollar, diversify their investment to foreign countries, and expand the local market.
- The Nation
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