Myanmar - Thailand Contract Farming Agreement

[Jai Dee]

MYANMAR AGREES TO CULTIVATE SEVEN MILLION HECTARES UNDER CONTRACT FARMING WITH THAILAND

The Cabinet yesterday heard a progress report on contract farming with Myanmar in which the neighbouring country agreed to reserve seven million hectares, or about 44 million RAI (ไร่), for the purpose.

Government Spokesperson SURAPONG SUEBWONGLEE (สุรพงษ์ สืบวงศ์ลี) said after the Cabinet meeting that Myanmar agreed to plant such crops as sugarcane, oil palm, cassava and rubber, to be supplied to factories in Thailand.

The Thai Government also expects to conclude a contract farming agreement with Cambodia shortly and has begun negotiations on the same issue with Laos.

Contract farming is being conducted between Thailand and neighbouring countries under the Ayeyarwaddy-CHAO PHRAYA-MEKONG Economic Cooperation Strategy, or ACMECS. The practice is usually applied to agricultural crops which are labour intensive and aims to substitute imports. Produce from the project will be sent to Thailand for value adding purpose. The project will help generate jobs in neighbouring countries and will support investment expansion between partners.

Contract farming is expected to effectively solve illegal border crossing of migrant workers, reduce health and social problems originated from illegal labour and patch up the difference in development levels between Thailand and neighbouring countries. Moreover, the practice will reduce the production capital of Thai goods because of cheaper raw materials and labour cost in the neighbouring countries.

Source: Thai National News Bureau Public Relations Department - 30 November 2005

[terrydxn]

What kind of work contract will the Burmese workers have on these farms

[astral]

What kind of work contract will the Burmese workers have on these farms

<{POST_SNAPBACK}>

Wages of 10 baht a day I expect.

[Sangsom]

Why so much 10 baht? Myanmar used to have a system in which they paid nothing. A good system when you want to make profits. Thaksin will surely like that one!

[NedKelly]

What a frightening prospect.......I am surprised that Singapore isn't involved.........theyr'e pretty good at exploitation in a round about way espcially in business with Burmas junta.

[plachon]

Why so much 10 baht? Myanmar used to have a system in which they paid nothing. A good system when you want to make profits. Thaksin will surely like that one!

<{POST_SNAPBACK}>

I don't think it's "used to". Burma still reportedly uses virtual slave labour to build roads, pipelines, dams and other state infrastructure projects on a regular basis. Villages in remote areas are expected to donate corvee labour for projects, as was once the norm in Thailand over a hundred years ago, and if they don't then heaven help them. Hence, the ridiculous number of refugees seeking asylum in Thailand, or willling to work for one quarter of the normal minimum wage in appalling conditions on the shittiest jobs.

So now they've got the choice of where to be exploited.

Edited December 4, 2005 by plachon

[RamdomChances]

There is a legal minimum wage for Burmiese workers somwhere between 3-4000 bhat a month (cant remember exactly).

Thats if they are legal of course, you can go to the local gov offices (labour dep I assume) and request some Burmiese workers, they are then registered to you and you are responsible for them , we looked into it for the farm a while back.

RC