April 24, 2012

Thailand to buy 30,000 tonnes Laotian corn

In order to ease domestic shortage, the Thai Commerce Ministry has approved the import of 30,000 tonnes of Laotian corn.

The rising global market price of corn has driven Thai traders to export corn. This reason, together with a strong rise in demand for corn domestically on the back of continued expansion of livestock production in the country, has caused a shortage of supplies this year particularly to small feed millers.

The Public Warehouse Organisation (PWO) is importing corn starting this month till May. Price of corn rose to THB10.50 (US$0.34) per kilogramme in March, from THB10 (US$0.32) the month before. Imports from Laos are around THB7 (US$0.23).

This year the country's corn production is projected at 4.78 million tonnes while domestic demand stands at 4.525 million tonnes.  Export volumes are expected to be around 190,000 tonnes.