Charoen Pokphand chairman Dhanin Chearavanont has slammed government policy to favour consumers over farmers, suggesting that the prices of agricultural products should be floated to increase farmers’ incomes.
Dhanin said yesterday that Thai farmers still lacked investment capital, technological knowledge and marketing skills to make their farms successful and grow in a sustainable way.
“The Ministry of Commerce as well as politicians lack good understanding about farmers, who have taken all the risks in running their farming businesses. The prices of their products, such as pork, have been forced down by the government, aimed at helping consumers,” Dhanin said.
He said the prices of such products should be floated in line with market mechanisms.
“The government’s priority [should be] to allow poor people, especially in urban areas, and farmers to get higher incomes and live better. They will also enjoy better spending power and the country’s overall economy, including the business sector and the government itself, will benefit,” Dhanin said.
He said that in many developed countries, such as Japan, farmers had been seriously protected.
Dhanin said the government should also support small business enterprises, which had been neglected for more than 10 years after the closure of financial institutes as result of the financial crisis in 1997.
He said the prices of agricultural products should be increased significantly along with the increase of oil prices in the world market, but prices have yet to reflect the reality as they are being pushed down by powerful countries.
“In my point of view, oil prices will increase further until they have been replaced effectively by alternative energies such as solar power. At the same time, the price of ethanol, which is made from agricultural goods such as sugar cane and cassava, should be raised along with the increase in the oil price.
“All farmers will benefit as they convert their land into sugar and cassava plantations for better incomes. Then the planting areas for rice and their output will be reduced and the price of rice will increase significantly in the market.”
Dhanin yesterday gave a speech to farmers and villagers at Ban Nong Wa in Chachoengsao province on the occasion of the 35th anniversary of its agricultural projects based on His Majesty King Bhumibol Adulyadej’s sufficiency economy and land reform.
He said Ban Nong Wa was a good model to follow. When Charoen Pokphand Group came in and developed pig farming and other agricultural projects 35 years ago, about 50 farmer households, who had no land or investment funds, participated in the project. Under the project, average household incomes increased significantly from Bt2,000 a month 35 years ago to about Bt80,000 today.
The project can be further applied in other potential districts throughout the Kingdom, he said.