Pledging of cassava set to return as prices take a fall
The government will be asked to budget at least Bt10 billion for a cassava-pledging project to shore up prices next month after they fell below Bt2 per kilogram.
Deputy Commerce Minister Poom Sarapol said the government would bring back the pledging scheme for cassava next month.
The government will set a limit on the volumes for cassava pledging, as the project is only aimed at boosting prices after many farmers complained about a drop in incomes.
The ministry’s cassava committee plans to ask for Cabinet’s approval for the pledging budget before the end of this month.
High humidity
Farmers have told the ministry that the price of cassava has fallen significantly, to Bt1.50-Bt1.60 a kilo from about Bt2 previously, because of reduced quality due to high humidity during the rainy season.
The government will conduct a study with cassava farmers, tapioca traders, and ethanol producers to set up an appropriate pledging price to ensure a fair return for all involved.
The ministry has found that the costs of cassava production vary from Bt1.70 to Bt2.20 per kilo.
The ministry has reported that about 105,342 rai (16,855 hectares) of cassava plantations have been destroyed by the current flooding crisis.
About 25 million tonnes of cassava output is expected to enter the market during the harvest season starting next month.
