March 14, 2022
 

Thai feed producers call for inspection of grain wholesalers over possible hoarding

Animal feed producers in Thailand have urged local authorities to inspect grain wholesalers for signs of hoarding as they are unable to buy corn anywhere despite soaring prices, a source revealed on March 11.

The price of corn is at ฿13 (US$0.39) per kilo, the highest in several decades, and about 30% higher than the 2021 price of ฿10.05 (US$0.30), said the source.

Feed producers are prepared to pay that price but cannot find sellers with available stock anywhere. Farmers also told them that they had already sold their harvest to buyers earlier this year, the source added.

"Manufacturers now suspect that these buyers are hoarding corn and waiting for the price to go even higher due to the impact of the Russian-Ukraine war, which has driven up prices of several crops, including corn, wheat and tapioca," said the source.

"The Commerce Ministry should inspect corn buyers' stocks and take legal action against any merchants found to be profiteering while supplies of animal feed raw materials remain at a critical level," it added.

The Thai government has set the floor price of corn at ฿8.5 (US$0.25) per kilo as part of its price guarantee scheme for farmers. However, it has not set a ceiling price, meaning the price of corn can soar and thereby increase costs for animal feed producers.

However, producers cannot raise prices as animal feed is a controlled item.

"If the Russia-Ukraine war persists and the grain prices continue to rise, animal feed manufacturers may have to consider temporarily halting production to prevent losses," said the source.
 

- The Nation