February 18, 2009
Thailand to buy more domestic corn to appease farmers
The Thai government has agreed to double its domestic corn purchase to 1.5 million tonnes from 750,000 tonnes in a bid to support prices, according to the deputy prime minister Tuesday (Feb 17).
Under the plan, the government would purchase corn at THB8.50 per kg (US$0.24).
Deputy Prime Minister Korbsak Sabhavasu said the government cannot ignore farmers who are suffering from falling prices.
Farmers in the north have staged protests to call for more government intervention to help them cushion the effects of declining world corn prices among other issues.
Domestic corn prices have dropped to THB7 per kg, well below the THB12.5 seen in mid-2008 when prices jumped in line with CBOT corn which increased above US$8 per bushel.
Thailand's corn harvest is estimated at 3.7 million tonnes, according to Agriculture Ministry data.
US$1 = THB35.1894 (Feb 18)
