Minimum export price for cassava during harvest

[webfact]

Minimum export price for cassava during harvest
By   PETCHANET PRATRUANGKRAI

The Nation

 

BANGKOK: -- THE COMMERCE Ministry has set a minimum export price for tapioca starch of US$320 per tonne, and $180 per tonne for tapioca chip, in a bid to drive up the domestic cassava price to Bt1.90 per kilogram, from Bt1.60 currently.

 

During the harvest season,which starts next month.

Winichai Chaemchaeng, vice minister for commerce, said the upcoming harvest season from November to April was expected to yield 31 million tonnes of cassava. “During the peak season from January to April, about 21 million tonnes of cassava is expected to be harvested, so export prices should be set,” he said.

The minimum export price will be effective from November 1 to April 30.

 

Full story: http://www.nationmultimedia.com/news/business/macroeconomics/30297917

 

-- © Copyright The Nation 2016-10-19

[maoro2013]

Its too late for many of the farmers in my area.

[somo]

This will do very little to help. In Dec market forces should push the price above 2 Baht unless the Chinese give up on Thailand altogether. At 1,90 it is hardly worth doing. I am switching to producing bamboo shoots and plants for the European market.

[Emster23]

They just can't seem to fathom concept of allowing market to determine prices, can they?

[Srikcir]

4 hours ago, webfact said:

a bid to drive up the domestic cassava price

The government had planned in September 2016 to sell off its 340,000+ tons  of tapioca in November and December as sales in those months "will not likely impact the market price of the crop." The government's stocks are costing the state more than 50 million baht to store monthly.

 http://www.thaivisa.com/forum/topic/941344-thai-government-to-sell-off-tapioca-stock/

 

Wouldn't that be counter-productive to raising prices?

 

[Anthony5]

I see someone going to court in a few years and being held responsible for paying back billions of Thai Baht...........

[eliotness]

1 hour ago, somo said:

This will do very little to help. In Dec market forces should push the price above 2 Baht unless the Chinese give up on Thailand altogether. At 1,90 it is hardly worth doing. I am switching to producing bamboo shoots and plants for the European market.

 

Last year we got just 2 baht per kg.  Even at that price we suffered a loss.  It seems the middle men are due to make a good profit, just like what happened with the rice scheme.

[worgeordie]

"The government's stocks are costing the state more than 50 million baht to store monthly. "

it would seem owning warehouses are better than farming,especially as the Government always

seems to be buying up farm products .

regards worgeordie

[Toknarok]

      My family had to harvest their crop last month or it would have rotted in the ground. They got 1 baht a kilo. Where the Govt. gets it's 1.6 baht a kilo from I don't know, if that's right someone's making a killing at the farmers expense.

   At this low price it's just not worth growing. I've suggested that they leave their land fallow for a year to let it recover. My family can afford to do this, many others can't.

[somo]

23 hours ago, Toknarok said:

      My family had to harvest their crop last month or it would have rotted in the ground. They got 1 baht a kilo. Where the Govt. gets it's 1.6 baht a kilo from I don't know, if that's right someone's making a killing at the farmers expense.

   At this low price it's just not worth growing. I've suggested that they leave their land fallow for a year to let it recover. My family can afford to do this, many others can't.

 

I would suggest they take a look at planting bamboo with a view to selling the shoots. Unlike cassava it is an expanding market and sells for 10 times the price. It takes a little bit of investment in time and money but once planted will give an income for 10-15 years with very little maintenance.

 

[billd766]

On 19/10/2016 at 9:52 AM, eliotness said:

 

Last year we got just 2 baht per kg.  Even at that price we suffered a loss.  It seems the middle men are due to make a good profit, just like what happened with the rice scheme.

 

Out here in rural Khampaeng Phet the gate price that they pat to farmers is 1,200 baht per tonne. I have the feeling that is the price for dry cassava. For wet you can knock perhaps 25% off the gate price.

 

My wife rents out 2 bits of her land to different farmers and neither of them are bothering to harvest yet. They may even leave it in the ground for another year.

[Basil B]

Reading the above posts seems time to find another cash crop.

better still diversify... 

 

Why do Thai always have to copy their neighbours ??? 

Edited October 20, 2016 by Basil B

[billd766]

On 20/10/2016 at 1:40 PM, Basil B said:

Reading the above posts seems time to find another cash crop.

better still diversify... 

 

Why do Thai always have to copy their neighbours ??? 

 

In many cases they are limited to what they can grow on the land.

 

Rice is easier to grow on flatter land with plenty of water available. Cassava is a hardier crop and can be grown on sloping and stony ground and is less affected by a shortage of water. Corn and sugar cane can be grown on the same land as cassava.

 

To grow a different crop you need to know what the land can support and more importantly where you can find a market for your crop that doesn't eat into your profits in transportation and storage costs.

 

Hydroponic farming is OK but needs a lot of water. Fertiliser and pesticide free crops are a fair earner BUT the land needs to be certified as pesticide free which can take up to 5 years so what do farmers live on meantime?

[Srikcir]

8 hours ago, billd766 said:

where you can find a market for your crop

Might be a problem if one grower may not be able to supply a market that's cost effective.