Thai banana exports to Japan will rise as the Japan-Thailand Economic Partnership Agreement offers tax exemptions to 8,000 tons of Thai bananas imported into the country annually, Department of International Trade Promotion director general Phusit Ratanakul Seriroengrit said.

Thai producers have exported less than 3,000 tons of bananas so far this year, which will allow another 5,000 tons to be exported under the agreement.

Negotiations between 10 Japanese importers and 23 Thai exporters were held at the THAIFEX – Anuga Asia 2023 trade show in May.

It is expected that exports of Thai bananas and products derived from bananas will top 1 billion baht this year. Thai commercial attachés have been instructed to speed up trade to show direct results.

Chanthapat Panjamanond, director of the Thai Trade Centre in Tokyo, said that Japanese consumers are interested in Thai bananas. They consume more than a million tons per year but are only able to grow a small quantity domestically. Most bananas are imported from the Philippines, but their prices are rising. Additionally, Thailand is currently the only producer of Gros Michel bananas, which many Japanese consumers prefer to the commonly available Cavendish bananas.

Chanthapat said that Thai bananas can penetrate the Japanese market if Thailand develops adequate quality controls. He suggested that Japanese importers be invited to taste the produce and witness the quality of its production, as Japanese banana experts responsible for introducing Philippine bananas into their market were first invited to the Philippines.

Japanese experts advised on techniques for increasing production quality and improving storage methods for producers. Chanthapat said that the Japanese delegates, impressed by the preparedness of Thai banana growers and convinced of their potential to satisfy the Japanese market, began plans to order another 5,000 tons of fruit per year.

Sarum Mongsoongnoen, Nakhon Ratchasima’s minister of commerce, said that the province’s nutrient-rich soil makes the bananas grown there unique in nutrition and taste. He also said that the Japanese delegation’s visit informed him of the high demand in the Japanese market, the readiness of Thai producers and favourable conditions for banana farming. It also made him confident that Nakhon Ratchasima’s bananas would be produced at international standards and satisfy Japanese consumers.

In addition to the 5,000-tonne increased banana export, a 300-tonne export of mangosteens was arranged at the event. The immediate export value generated is expected to be at least 200 million baht. The agreement will also lessen Thailand’s fruit market’s dependence on China and improve Thai fruit prices.

 Source: The Nation Thailand