February 10, 2009

Thailand's corn farmers may strike on February 17, if the government does not offer solutions to their problems.

Corn farmers set up road blockades on Sunday (Feb 8), hindering traffic from Tak province to Mae Sot district with farm trucks and equipment. The farmers demanded the government to help resolve the effects of declining world corn prices, rising fertiliser prices and land deed issues.

The farmers dispersed after Deputy Education Minister Chaiwuti Bannawat promised to carry their requests to the Deputy Commerce Minister Alongkorn Ponlaboot, and to ask the Bank for Agriculture and Agricultural Cooperatives (BAAC) to extend the farmers' debt payment period.

The corn farmers had complained that officials delayed the distribution of cash to those who had mortgaged their corn under the government scheme. The officials claimed they could not hand out money without cabinet approval.

The farmers also want the government to increase the mortgage amount by another 250,000 tonnes, which will cost the government more than THB2.1 billion (US$60 million) with the price to be fixed at THB8.50 (US$0.24) per kg.

Farmers nationwide currently hold about 1.2-1.3 million tonnes of corn, but the government could accept a mortgage of only 750,000 tonnes.

In response, Alongkorn promised he would ask the cabinet to speed up the cash disbursements to farmers, while Internal Trade Department director-general Yanyong Phuangrach said a meeting will be held Wednesday (Feb 11), aimed at allowing the government to increase the mortgaged amount of corn.

Yanyong said corn farmers are reluctant to mortgage their produce with the government with the hope that world market price will increase in the future.

Farmers should not hesitate because the mortgage programme will end this month while the government would help to find buyers overseas, according to Yanyong.