Foreign buyers have agreed to purchase nearly 1.5 million tonnes of tapioca products at the two-day World Tapioca Conference 2018, which ended yesterday.
Commerce Minister Sontirat Sontijirawong said the business matching event held yesterday by the ministry between Thai traders and importers from China, Turkey, Japan, India, and Indonesia resulted in signing of memorandums of understanding (MoUs) to purchase 1.49 million tonnes worth 14 billion baht.
"The MoUs are a good sign, as they let us know about advance demand from potential buyers, which is in line with the government's market-led production strategy," he said.
"Given the relatively big amount, the agreements will also be good for future fresh cassava root prices."
Thailand produces 28-30 million tonnes of fresh cassava roots annually, fetching the country more than 100 billion baht a year and engaging more than 500,000 families nationwide.
Thailand is the world's largest exporter of tapioca products, controlling more than 50% of the global market.
Combined with Cambodia, Laos, and Vietnam, their total share of the global market is 80%.
Last year, Thailand exported 11 million tonnes of tapioca products, while exports worldwide totalled 21 million tonnes.
For the first four months of this year, Thailand exported 3.6 million tonnes, down 8% year-on-year.
But the total value was worth 1.178 billion baht, an increase of 26%.
In 2018, Thailand has set an export target of 10.6 million tonnes, with lower production anticipated.
Export value is estimated to be on par with last year.
The Foreign Trade Department predicted recently tapioca prices are likely to increase this year because of rising demand.
Currently, the price of tapioca chips averages US$252 (8,268 baht) per tonne, up from $170, while modified starch averages $540 per tonne, up from $360.
Domestic fresh cassava root prices average 2.95-3.20 baht per kilogramme, up 85% from the same period of last year, because of lower production.
Mr Sontirat, speaking at the World Tapioca Conference, said Thailand also held a joint meeting with Cambodia, Laos, and Vietnam to discuss the feasibility of exchanging production data and cooperating on marketing to stabilise tapioca prices over the long term, upgrading farmers' lives.