July 6, 2009

Thailand's government, in response to shrimp farmers' requests, announced it will spend THB1.4 billion on a new mortgage plan for 10,000 tonnes of vannamei shrimp.

 

The plan will run from July 15 to September 30.

 

Apart from the THB1.4 billion budget, THB190 million will be used to manage the plan.

 

In late June, southern shrimp farmers warned the government they would set up road blockades if officials failed to take effective measures to shore up shrimp prices by the end of June.

 

Shrimp prices have remained depressed since early 2009 due to slowing exports.

 

Shrimp exports this year are forecast to drop to 396,000 tonnes from last year's 495,000 tonnes. Production is also projected to reach 400,000 tonnes, down from 464,000 tonnes in the previous year.

 

The mortgaged shrimp will have to be redeemed by farmers within two months and the price will be determined by the shrimp size as the following:

 

-         THB100 for 80 shrimp per kg

                  

Farmers Assistance Policy Committee Chair and Deputy Prime Minister Korbsak Sabhavasu said that THB1.2 billion will be given to the Bank of Agriculture and Agricultural Co-Operatives to sign contract orders for 30,000 tonnes of farmed shrimp.