August 22, 2007

Thai trade office accepts shrimp as collateral for farm loans
 

Thailand's Phuket Internal Trade Office (PITO) has announced that they will now accept shrimp as collateral for loans requested by registered shrimp farmers in Phuket to help them tide over current low prices.

PITO Chief Somphot Sangkhapong said the office would accept Pacific white shrimp, also known as white vannamei shrimp, for any farmer who wants a loan.

Deposited stock must consist of 40 to 60 shrimp per kilogram, priced between 105 and THB 140 per kilogramme, with a total value not exceeding two million baht.

Farmers have four months to withdraw their stock after deposit.

The nationwide programme will have shrimp stored in one of seven cold storage units around the country, but Phuket farmers must travel to the nearest unit, in Songkhla, to receive the loan.

Nine farmers in Phuket has taken up the offer, depositing 109 tonnes of shrimp worth THB 15.3 million (US$465,000).

Thailand has implemented various measures to boost the shrimp industry, including promotions to encourage more shrimp consumption as restrictions from the US continue to hit exports. Authorities have also encouraged farmers to grow larger shrimp to cater to Asian markets such as Japan and South Korea.