May 26, 2009

A proposal from southern shrimpers in Thailand to pledge 10,000 tonnes of vannamei shrimp has been rejected by the government on fears of a financial loss.

According to the Bangkok Post, Commerce Minister Porntiva Nakasai-- who chaired a working panel on farmers' assistance-- said the government would rather consider other forms of assistance such as soft loans for contract farming and subsidies for production costs.

The government already holds shrimp stocks of 2,508 tonnes and an additional purchase would trigger an immediate loss of about 400 million baht, said Mrs Porntiva.

The government bought 10,000 tonnes of shrimp last year at 105 to 160 baht per kilogramme under its price-pledging scheme. Of these, only 7,492 tonnes have been sold and the government anticipates a loss of 494 million baht if the remaining stocks were not bought.

Shrimp farmers in eight southern provinces asked the government to buy their products - at 160 baht per kilogramme of 40 shrimp, 140 baht per kg of 50 shrimp, 130 baht per kg of 60 shrimp, 115 baht per kg of 70 shrimp and 105 per kg of 80 shrimp - as prices have fallen steadily over the last four months.

For instance, one kilogramme of 60 shrimp is now priced at about 110 baht, down from 120 baht in April, 128 baht in March, 131 baht in February and 124 baht in January.

The farmers suggested pledging prices ranging from 105 to 160 baht to enable them to stay afloat.