Thailand's BAAC to aid cassava growers

[webfact]

BAAC to aid cassava growers

BANGKOK: -- The state-owned Bank for Agriculture and Agricultural Cooperatives plans to provide loans worth 2.5 billion baht to cassava growers, after abundant supplies have resulted in lower prices at this time.

Supat Eauchai, and executive vice president of the BAAC, said on Thursday that the 2.5-billion-baht credit scheme will be granted to farmers, agricultural groups and community-level enterprises involved in the cassava growing business.

Mr Supat said this scheme will enable farmers to sell cassava at appropriate prices, have more distribution channels and trim down their transportation cost.

The BAAC will consider granting loans on an individual basis. If granted, each individual or community will be eligible for a loan for a one-year term at 2% interest.

Applicants can submit their proposals until July 31, 2016. The bank has set a target to collect about one million tonnes of fresh cassava this year.

-- NNT 2016-03-18

[leeneeds]

Abundant supplies, = (depressed prices) ,, have where i live anyway dropped to 2 baht,

at a location near work 120kms away the price was 2.35baht

We lost 2 rai of the crop from lack of rain but the rest (6 rai) had very good

moisture content of over 30 %.

I do not like the bank offering more credit be it at 2% for farmers who do not have a second income

and whose crops may have failed to some extent, or larger,

these credit offerings are a burden dangled like a carrot

to those who do not think ahead or will not be able to make such payments, if their crop return fails,

Banks are about making money, business is business, painting it up as we are here to help,

"appropriate prices, more distribution centres , trim transportation costs"

over supply is still over supply

bottom line is 12-18 months growing before harvest at 2.5 billion loan + 2% (too many zeros to keep in my head sorry )

and misery is still misery

[maoro2013]

I believe a lot of cassava is imported from Cambodia. Maybe that should stop or import duty be charged.

[rickirs]

I believe a lot of cassava is imported from Cambodia. Maybe that should stop or import duty be charged.

Thai authorities may be imposing trade barriers aimed at protecting their country’s half a million cassava-growing households, according to Cambodian trader Sam Yin. However, this might now violate the trade agreement among the ASEAN countries.

[rickirs]

Around 30.9 million tons of cassava will likely enter the market this harvest season, slightly higher than the same period last year of 30.02 million tons.

Like the rice and rubber farmers, they will not slow production. And oversupply will continue to depress prices.

China's recent decision to subsidize maize (corn) instead of cassava for alcohol production may further pressure a Thai oversupply. Albeit, China has pledged it will not reduce its imports of Thai cassava.