The government is being urged to maintain policy interest rates until the end of the year and curb the impact of foreign exchange fluctuations on the country's export performance.

Sanan Angubolkul, chairman of the promotion group for exports and outward foreign direct investment under the Pracha Rat Public-Private Collaborative Committee, said although Thai exports fared quite well in the first half, many farm products such as rubber, tapioca and rubber remain in trouble as their prices were still relatively low.

"The private sector is asking the government and responsible units to cap the policy rates until year-end while ensuring the baht's movements are in line with Thailand's peers," said Mr Sanan.

He said the baht, though weaker, is still stronger than the currencies of rival countries, cutting down Thailand's export competitiveness.

Mr Sanan, also chairman of melamine maker Srithai Superware Plc, said the panel remains upbeat that Thai exports could grow 9% this year, fetching the country US$257.95 billion (8.4 trillion baht).

He said exports of agricultural and agro-industrial products are expected to rise 5% this year, while exports of industrial products are projected to surge 11%, driven by electronics, automobiles, electric appliances and plastic pellets.

Commerce Minister Sontirat Sontijirawong, who chaired the meeting of the panel yesterday, said it was a good sign that the private sector predicted strong growth for this year's overall exports, despite the escalating trade row between the US and China.

The ministry is maintaining its export growth forecast at 8% this year, but Mr Sontirat said an adjustment is likely after Thai trade officials and international commercial counsellors meet in October.

The Commerce Ministry reported last week Thailand's exports grew for a 17th straight month in July, elevating their performance in the first seven months to a seven-year high.

The customs-cleared exports rose 8.3% year-on-year in July, fetching $20.2 billion, after growing 8.2% in June and 11.4% in May.

Exports in baht terms rose by 4.1% from the same month of last year, to 662.17 billion baht.

Shipments to most markets except the Middle East and the US saw expansion, with extraordinary growth seen in Asean, India, South Asia, Russia and the Commonwealth of Independent States and Japan, which reported double-digit increases.

Exports of agricultural and agro-industrial products rose 3.2% in July to $3.38 billion, boosted by higher shipments of sugar (+41%), frozen and processed chicken (+14.1%), canned tuna (+21.3%) and beverages (+14.2%).

Overall industrial product shipments have posted growth for 17 straight months, up 7.7% in July to $16.07 billion, led by goods related to oil (+36.6%), automobiles and parts (11.2%), computers and components (+11.1%).

For the first seven months of 2018, Thai exports rose 10.6% to $146.23 billion. Exports in baht terms also edged up 1.2% from the same period of last year to 4.59 trillion baht. Imports rose accordingly for the period by 14.8% to $143.29 billion, yielding a trade surplus of $2.93 billion.