(CTN News) – The Ministry of Commerce has asked 10 groupings, 20 networks, and 18 firms to absorb agricultural goods to minimise price decreases.
Low agricultural product prices in Thailand are a reoccurring challenge for the agriculture sector each year. This problem can be caused by a variety of sources, including an excess of produce compared to market demand, disease outbreaks, and other causes.
It is a major challenge that every government must confront and address. Some governments have even faced protests from farmers seeking immediate action to address the issue.
This is especially true for five main agricultural products: rice, cassava, palm oil, animal feed maize and rubber, which have a combined yearly market worth of at least 800 billion to 900 billion baht.
Other agricultural goods include fruits, root crops, and field crops. This ongoing issue is a “hot potato” for every government, including the present one led by Prime Minister Srettha Thavisin.
Phumtham Wechayachai, the minister of commerce, announced a strategy to address agricultural-product prices shortly after taking office.
This strategy entails working with the private sector to increase exports, improving agricultural product quality under the policy “Market-led, Innovation-enhanced, Income-boosted,” regulating market procedures, and planning ahead of time for all products.
This includes proactively resolving issues, lowering expenses, and upgrading infrastructure, particularly effective water management.
As a result, on July 18, Srettha summoned Vuttikrai Leewiraphan, permanent secretary of the Ministry of Commerce, and Wattanasak Sur-iam, director general of the Department of Internal Trade, to discuss strategies for maintaining the price and quality of agricultural products set to enter the market in the second half of the year.
Srettha recommended that measures be implemented to assist farmers, including the involvement of big business operators in these efforts, in addition to the Ministry of Commerce’s current actions to manage agricultural product pricing.
Srettha stated that approximately 50% of the produce projected in the second half of the year needed pricing and quality management. He assigned Vuttikrai and Wattanasak to monitor secondary crops such as fruits, root crops, and vegetables, with plans in place for items like northern longan and southern mangosteen, as well as root crops, which are expected later this year.
“I have emphasised that we need to involve major business operators, especially publicly listed companies, in managing domestic agricultural produce and raising prices through the production of high-quality agricultural goods, establishing market standards, and opening new markets,” said the minister of agriculture.
Following Srettha’s command, Phumtham, who is also the deputy prime minister, instructed authorities to accelerate the prime minister’s orders. They were directed to work with significant corporations, particularly those listed on Thailand’s Stock Exchange, to aid in the management of domestic agricultural produce through purchasing, selling, or marketing initiatives to help farmers obtain higher prices.
Wattanasak stated, “Large corporations or tycoons typically engage in social responsibility activities, or CSR. We have asked them to assist the ministry in controlling agricultural produce.
“Traditional methods of price intervention and purchase are unsustainable. We need the support of key players. So far, negotiations with significant company operators have demonstrated their willingness to work with the ministry.”
Initially, collaboration with company operators has been established to aid in the absorption of agricultural produce, guaranteeing that major businesses assist smaller farmers, as required by Srettha. The “proactive management” technique aims to manage 313,474 tonnes of agricultural goods across three groupings.
Source: Nation Thailand
