December 20, 2008

Thailand's feed association to pay more for corn

Thailand's Feed Mill Association has agreed to pay THB7 per kg for corn from farmers, up 10 percent from the current market price.

The higher purchasing price was agreed on Thursday (Dec 18) in a bid to shore up corn prices and help farmers who are hurt by low prices.

Hundreds of corn farmers blocked streets in the Northern provinces in the past two days, asking the government to extend the price intervention programme to THB8.50 per kg.

However, feed millers have also asked the government not to release its large stockpiles of corn into the market in order to prevent market prices from crashing down. Domestic corn prices are THB6.80 to THB6.90 per kg, while Chicago prices have dropped to THB5.18 per kg.

This was the only main measure initiated to help farmers that were affected by the price declines, but the ministry will soon propose to the New Cabinet to consider extending the price intervention programme, said Yanyong Phuangrach, director-general of the Internal Trade Department.

US$1 = THB34.5185 (Dec 20)