June 4, 2004

Thai Government Body Yet To Finalize Removal Of 5% Soymeal Import Tax

The Thai government's subcommittee on feedmeal was undecided over whether to remove a 5% import tax on soymeal at a meeting Thursday, said Siripol Yodmuangcharoen, director-general at the Department of Internal Trade at the Commerce Ministry.
 
Local feedmeal producers, feedmeal users and farmers in the livestock sector have been urging the government to remove the tax, as they are suffering from high feedmeal prices.
 
However, local soymeal producers oppose the proposal.
 
Soymeal prices have risen to around 15 baht a kilogram ($1=THB40.863) from around THB9-THB10/kg recently. The higher prices were triggered by lower global production which pushed up world feedmeal prices.
 
Siripol said the subcommittee agreed to set up a joint committee comprising both government officials and representatives from relevant industries to study the feedmeal market and prices in Thailand as well as the impact of an import tax cut.
 
The subcommittee will consider the results of the study at the next meeting before making any decision on the tax cut, he said.
 
The subcommittee, however, has not yet set a date for the next meeting, Siripol said.
 
Local swine farmers said the removal of the soymeal import tax will help reduce the cost of raising live hogs.
 
The farmgate price of hogs is currently around THB50/kg.
 
Thailand imported around 2.1 million metric tons of soymeal worth around THB19 billion in 2003.