Cassava-root prices are expected to stay in a range of 2.40 to 2.50 baht or more per kilogramme this year, supported by China's strong demand.
"Tapioca prices are still on the upward trend. The Chinese government still needs to import it for ethanol production not only from Thailand but also Vietnam, Cambodia and Indonesia," said Preecha Temprom, president of the Thai Tapioca Starch Association (TTSA).
"I just returned from Vietnam and learned China has also approached Hanoi to buy tapioca. Beijing is also seeking to buy from Indonesia and Cambodia."
He said Thailand's tapioca shipments are expected to exceed 100 billion baht this year.
The estimate exceeds a Commerce Ministry forecast of 90 billion baht, up from 80 billion last year.
The export surge is partially driven by lower supply from Vietnam and Indonesia.
Tapioca flour shipments are forecast at 3.5 million tonnes in 2013, up from 3.2 million tonnes last year. Exports of tapioca chips and tapioca pellets will likely stay unchanged at 4 million tonnes.
The TTSA said Thailand has produced 28.7 million tonnes of cassava in the 2013-14 crop, up by 1.66% from the 2012-13 season.
Last Friday, the Thai Tapioca Trade Association reported the prices were at 2.60 to three baht per kg for cassava root and 6.70 to seven baht for tapioca chip.
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 from the alternative-energy sector, especially in China.
Under the programme, which ran from Oct 1, 2012 to March 31, 2013, the government initially paid 2.50 baht per kg for cassava root before raising the price by five satang each month until it reached 2.70 baht at the end of the programme. Some 9.9 million tonnes of cassava root were reported pledged, close to the state's target.
Last month, Deputy Prime Minister Niwatthamrong Bunsongphaisan said the National Tapioca Policy Committee would seek the cabinet's approval whether to continue the pledging programme or offer direct support to farmers.
The proposal has yet to win the cabinet's approval
"Farmers waited a month for the cabinet's consideration on the pledging scheme, but now most of them decide to grow without waiting for the state policy," said Mr Niwatthamrong.