I thought you would say something like:
“Our survey shows that the market is very competitive with key players like Producer A, Producer B, and Producer C already very established in Thailand. Customers are also reluctant to change because [reason……..]. In this regard, we regret that we may not be able help you distribute your product at this point in time. We thank you for the opportunity and hope can cooperate in the future.”
In this way, we are telling FTC it is due to the market situation, and not because it is not in our plan for this year (which may sound a little offending).