Thailand, the world’s largest exporter of tapioca is eyeing newer destinations such as India and New Zealand to expand markets. At present, China is the biggest buyer of Thailand’s tapioca products such as starch and chips.

However, the Thai trade is concerned over the high import duty of about 68 per cent imposed by India on tapioca to protect its domestic growers.

“We are going to take up the issue of high duty with the Indian government,” Thailand’s Commerce Minister Sontirat Sontijirawong told Business Line on the sidelines of the two day World Tapioca Conference 2018 in Bangkok on Thursday.

Thailand, which has a free trade agreement with India, is hopeful of negotiating the high tax issue on tapioca. “We see a lot of opportunity in markets like India, Japan Korea and New Zealand,” Sontijirawong said.

Adul Chotinisakorn, Director General, Department of Foreign Trade, said Thailand would be looking to sell tapioca flour in India, where consumption is picking up.

Globally, the use of tapioca products was on the rise in industries such as food, textiles, paper, plywood, animal feed, sweeteners, medicine and alcohol among others.

“India is a good market, but the taxes are quite high,” said Boonchai Srichaiyongpanich, President , The Thai Tapioca Trade Association.

Thailand, the second largest producer of tapioca after Nigeria, is seeking to help its growers by developing new markets. China is seen slowing down it’s purchases on account of high prices in the recent months as users in that country are switching over to the cheaper corn starch.

“The prices may come down a bit by the year-end with the arrival of new crop,” said Srichaiyongpanich. He said the tapioca acreage in Thailand has reduced by around a tenth to about 1.4 million hectares last year. Low tapioca prices, which fell by over a fourth in the past two-three years, had forced Thai tapioca farmers to switch over to sugarcane and corn. “It may take another two years for Thai farmers to switch back to tapioca,” Srichaiyongpanich said.

Tapioca plays a major role in Thailand’s agri-economy with production estimated around 30 million tonnes. Total value of annnual shipments are estimated at around 100 billion Baht. Over 500,000 farmers are engaged in cultivation of tapioca in Thailand, which accounts for over half of global exports.

(The writer was in Bangkok at the invitation of the Ministry of Commerce, Thailand)

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