October 12, 2010

 

Thai Feed Mill Association calls for soymeal import quotas

The Thai Feed Mill Association called last week for the Commerce Ministry to urgently consider allocating import quotas for soymeal.

 

"Feed-meal producers have faced business problems as the quota allocation for soybean meal must rely on the ministry's annual decision. The delay in setting up the meeting has caused huge losses for the sector," said Pornsilp Patcharintanakul, president of the association.

 

The ministry is due to call a meeting of the Food Policy Committee to set soymeal import quotas three months in advance of the new year. However, it is now mid-October and the ministry has not yet made any plans for the meeting.

 

The association and related trade organisations have written many times to the ministry and the Internal Trade Department, but their pleas have been ignored, leaving companies at their wits' end to plan their imports of raw materials.

 

The government should consider fixing import quotas every three years if it cannot work effectively to facilitate business.

 

Many feed mills are waiting for the Food Policy Committee to set a clear quota allocation and issue import certificates. About 200,000 tonnes of soymeal are waiting to be imported into the country.

 

"The government's perennial delay in issuing import regulations creates a lot of trouble, as we have to import large quantities of raw materials for stock keeping every year," he said.

 

Importers must post about THB3 million (US$0.10 million) a month as a bank guarantee if the government drags its feet in approving import certificates.

 

Meanwhile, despite the stronger baht, which is supposed to make imports cheaper, farmers have complained that chemical fertiliser prices are still high and driving up their production costs.

 

Fertiliser was found in short supply in many provinces, while traders have cited prices higher than the Commerce Ministry's benchmark.

 

For instance, the price of 46-0-0 formula is quoted at THB620-THB630 (US$20.65-$20.99) a pack versus the suggested price of THB584 (US$19.46).