January 12, 2009

Thailand is preparing to allocate up to THB63.3 billion (US$1.81 billion) to shore up the prices of 11 key agricultural products as part of its stimulus package, said the Bangkok Post.

The funds would cover agricultural products such as rice, corn, rubber, eggs and meat, according to Yanyong Phuangrach, director general of the Internal Trade Department.

Of the total funding, THB8 billion will be allocated to corn, THB2 billion to shrimp, THB70 million to eggs, THB20 million to pork, and THB20 million to poultry. The rest will go to rice, palm oil, rubber, tapioca, sugarcane and fruits.

The plan is expected to be presented to the cabinet in the near future.

The Commerce Ministry plans to request an additional budget of THB2-3 billion to finance marketing activities in at least 10 provinces, of which THB300-400 million will be earmarked for developing distribution and marketing channels for small and medium-sized enterprises and farmers, said Yanyong.

Another THB480 million will be used to develop 10 rice and corn silos in Khon Kaen, Nakhon Sawan, Ratchaburi, Nakhon Si Thammarat, Nakhon Pathom and Pathum Thani.

Yanyong said the government also plans to extend trading on the Agricultural Futures Exchange of Thailand (AFET) to cover products such as shrimp. The futures market will be promoted as the trading venue for agricultural products by private and public agencies.

US$1 = THB34.9907 (Jan 12)