Thai Farmlands Wilt Under Flood Onslaught

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SPECIAL REPORT

Farmlands wilt under flood onslaught

By Achara Pongvutitham

Petchanet

Pratruangkrai

The Nation

Rice crop likely to be down 1m tonnes; impact depends on when water recedes

The flood crisis has crippled logistics networks for farm and industrial goods, spelling deep trouble for exporters, which could incur hefty fines for shipment delays after transport disruptions created an artificial supply shortage.

Manufacturers and traders of major exports including rice, garments and tapioca say they are facing difficulty getting products to ports. And their employees are finding it hard to get to work, so production has dropped by 10-30 per cent.

The major farm crop that will be hit hardest is rice. Thailand has been the world's largest exporter of the grain for decades. The flooding should not cut export volumes but looks likely to spur higher costs due to shipment delays.

Rice

The impact on rice production will depend on how quickly the floodwater recedes. But shipments look likely to be tied up.

Prasith Boonchuey, head of the Thai Farmers Association, expected the main crop this year would be down an estimated one million tonnes of paddy from the 23 million tonnes forecast.

Early estimates were about 1.7 million rai of paddy in 26 provinces have been destroyed by flooding. "Farmers are suffering as rice is expected to be planted in a month. If the waters do not subside in a few weeks, then the rice crop will be a total disaster."

Prasith suggested the government set up a compensation fund to help farmers absorb the losses. It should also prepare an insurance scheme as a guarantee for farmers in the future.

As of October 19, the total flood-affected area reported by the government reached 1.44 million rai, but the damaged area was 1.41 million rai. Of the total damaged area, rice accounted for 1.09 million rai, field crops for 215,807 rai and horticultural crops 99,455 rai.

Korbsook Iamsuri, president of the Thai Rice Exporters Association, said exporters would be fined by their trading partners for delivery delays. The high water had disrupted transport as roads had been washed out or made impassable. Many rice mills and packaging plants are located in Ayutthaya, which is close to the river. But others were in flooded provinces, so rice couldn't be trucked out.

Meanwhile, rice exports will fall short of this year's projection of 8 to 8.5 million tonnes, because of the stronger baht. As of early this month, rice exports had reached 6 million tonnes.

Cassava

About 590,000 rai of field crops, in particular cassava, are expected to be wiped out by flooding, while 100,000 rai of fruit orchards may be destroyed.

Seree Denworarak, president of the Thai Tapioca Trade Association, said overall cassava production would not be lower than 22 million tonnes this year, even though some fields would be wasted by flooding in Prachin Buri and Nakhon Ratchasima.

If the waters could be drained within a few weeks, that would be good for cassava crops, as they had gone through a drought early this year, he said. However, the flooding would cause the spread of mealy bugs by leaving high humidity in the farming areas.

"The flooding will create an indirect impact on cassava crops in the future as mealy bugs, which is the major pest for cassava, like humidity," he said.

Rubber

Rubber plantations in the Northeast have not been affected by the flooding as they are on higher ground. Major plantation areas in this region include Loei, Udon Thani, Nong Khai, Nakhon Pha-nom, Mukdahan and Sakon Nakhon, while Nakhon Ratcha-sima and Chaiyaphum have the fewest rubber trees and farmers in Lop Buri can't grow them.

Luckchai Kittipol, head of the Thai Rubber Association, said an initial survey had not found any damage to rubber trees. But rubber trees in this region have not yet matured enough to produce latex.

"Flooding mainly hit the centre of province rather than the highland zones and rubber trees can absorb water well," he explained.

The association was watching the situation, as the floodwater was set to move to Ubon Ratchathani, which had some plantations near the Mekong.

The Cabinet will receive damage reports and proposals for relief and rehabilitation measures from key ministries including Interior, Transport, Agriculture, Education and Public Health.

Budget spending rules are expected to be further relaxed to speed up relief and rehabilitation. Financial aid to individual households is also expected to be discussed at the Cabinet meeting.

-- The Nation 2010-10-26

[chantorn]

Farmers will always be poor in Thailand, and all under develop countries. This is a a rule of thumb.