Tapioca exports keep their starch

Tapioca exports keep their starch

Thailand's tapioca product shipments are expected to exceed 100 billion baht this year, driven mainly by an import surge by China, says the Thai Tapioca Starch Association.

Preecha Temprom, the association's president, said the shipments will likely outstrip the Commerce Ministry forecast of 90 billion baht this year, up from 80 billion last year.

The export surge is partially driven by lower supply from Vietnam and Indonesia.

Commerce Ministry records show China imported tapioca products from Thailand worth 46.2 billion baht last year, a surge of 53% from 2011.

For the first eight months of this year, China's imports amounted to 36.2 billion, up by 59.3% from the same period last year.

For the period, Thailand shipped 61 billion baht worth of tapioca products, up by 6.52% year-on-year.

Cassava roots now fetch relatively high prices at 2.6 to 2.9 baht per kilogramme, above the government's pledging price.

The National Tapioca Policy Committee decided in May to scrap the cassava subsidy for the 2012-13 season, as tapioca prices recovered thanks to high demand in the alternative energy sector, especially in China. Some 9.9 million tonnes of cassava root were reported pledged, close to the state's target.

Panjit Pisawong, deputy director-general of the Foreign Trade Department, said demand for tapioca remains strong, particularly for use in ethanol production.

Thailand is expected to produce 28.2 million tonnes of cassava in the 2013-14 season, up 2.78% from the 2012-13 season.

A recent Commerce Ministry report to the cabinet revealed the government holds 260,000 tonnes of tapioca in its stockpile and plans to sell them off this month.

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