October 10, 2013

Thailand government urges exporter to buy corn from farmers

Following a recent drop in the prices of corn, Thailand's Commerce Ministry is asking exporters to purchase corn from farmers to help stabilise the market.

Deputy Commerce Minister Yanyong Phuangrach has mentioned about the process to intervene in corn market, saying the Internal Trade Department has opened up 388 centres nationwide to buy corn from the farmers. The ministry expects to purchase up to 1.8 million tonnes of corn under the price intervention programme which will end on December 31, 2013. In order for the programme to achieve its target, nearly 200 more centres will be set up.

The deputy minister said he had asked exporters to help buy and sell around 500,000-1,000,000 tonnes of corn, adding that the move will stabilise corn prices, which will, in turn, bring the market back to its balance.

The main corn exporter of Thailand said that due to the oversupply in the market and low quality of the produce, the corn price has hit its all-time low, adding that if the government does not get involved in the process, the export sector would have to struggle. At present, Thai corn exported to other countries is priced at US$240-250/tonne, lower than last year's rate of US$300/tonne.