September 13, 2006

 

Thailand to allow unlimited soybean imports in 2007

 

 

The Thai government has agreed to continue allowing an unlimited volume of soybean imports in 2007 while maintaining a zero tariff rate on the commodity, Deputy Government Spokesman Chalermchai Mahagitsiri told a news conference Tuesday (Sep 12).

 

Soybean imports fall under Thailand's commitment to the World Trade Organization to open its market to agricultural imports from WTO members.

 

The import policy for next year is unchanged from this year.

 

Twelve associations and companies using soybeans as a raw material are authorised to import soybeans at zero tariff, Chalearmchai said, adding that others who want to import soybeans will have to ask the government for permission on a case-by-case basis.

Imports from non-WTO members and imports by unauthorised importers will face a duty of 80 percent, Chalermchai said.

 

Under the soybean import policy for next year, importers can bring in imported soybeans but they will also have to buy all locally produced soybeans from farmers at guaranteed prices, Chalermchai said.

 

The guaranteed farmgate prices next year for soybeans will be THB10.5/kg for oil-extract grade, THB11/kg for animal feed grade and THB13/kg for food processing grade, while ex-factory prices for these three grades will be THB11.50/kg, THB12/kg and THB14/kg, respectively, he said.

 

The price guarantee measure is aimed at protecting local soybean farmers from price falls amid unlimited imports.

 

Thailand produces around 230,000 tonnes of soybeans a year, lagging behind annual consumption around 1.8 million tonnes, so the country has to rely on imports.

 

Thailand imports most of its soybeans from Argentina, the US and Brazil--all WTO members.