Domestic cotton manufacturers are benefiting from the rising oil prices and stronger baht. This has not only reduced import costs for cotton but has also given Thailand an edge over US markets.
Starting from 2006, baht has appreciated by 16.9 percent against US Dollar. An anticipated depreciation in dollar next year will further reduce the manufacturing cost of cotton in Thailand.
Around 115,560 tons of cotton was imported by Thailand in 2006-2007 and nearly half of this came from the US. This apart, production cost for synthetic fabric had risen, in spite of which the selling price of synthetic apparels has continued to decline.
On the other hand, even though cotton manufacturing costs reduced considerably, prices of cotton apparels remained quiet stable. US is gradually proving to be a viable market for Thailand made cotton garments.
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