October 12, 2012

In order to ensure quality production to support the feed-meal industry, Thailand has asked for closer cooperation from Laos and Cambodia, two major suppliers of corn to the country.

Thailand recently allowed unlimited volumes of corn to be imported from neighbouring countries under the Asean Free Trade Agreement.

However, supplier countries complained that they still could not ship corn to Thailand because of non-tariff barriers related to substandard quality of their grain.

The Foreign Trade Department thus will soon invite corn producers and relevant officials from Laos and Cambodia to Thailand to study the market so they can improve the quality of their grain to meet the demands of Thai consumers.

Piramol Charoenpao, director-general of the department, said Thailand was inviting unlimited imports of corn from neighbouring countries because of domestic shortages. However, the quality of corn from other countries may not meet the standards required by Thai feed-meal producers, so exporting countries need the chance to understand these standards to ensure long-term trading.

During the latest Asean Economic Ministers Meeting in Cambodia, that country and Laos called for Thailand to liberalise corn imports under farming contracts. Thailand agreed to import corn under the condition that it meets the quality standards required by Thai manufacturers.

Piramol said Thailand had no policy to restrict imports from neighbouring countries. The liberalisation has not only helped increase the supply of corn to support the Thai feed-meal industry, it has stabilised the cost of meal, as well as creating better relations with trading partners.

Commerce Minister Boonsong Teriyaphirom has also instructed the Public Warehouse Organisation to survey the annual demand of the Thai feed-meal industry for corn imports. It found that the industry needed to import about 86,300 tonnes this year to satisfy demand for its product.