Cassava pledging fails to attract farmers' participation
The government's price-pledging scheme for cassava, which kicked off yesterday, has failed to draw significant participation from farmers due to a lack of clarity in the qualifying conditions.
It was reported that in Nakhon Ratchasima, which has the country's biggest plantation area, only 10 farms and tapioca-flour producers have joined the project out of 100 cassava businesses in the province.
Production in the province covers 1.8 million rai, with an average annual cassava output of 8 million tonnes.
Due to falling prices, the government announced the introduction of a pledging scheme with a starting price of Bt2.75 per kilogram, which will rise by 5 satang a month until May. The final pledging price will be Bt2.90.
Prices prior to the subsidy measure were quoted at Bt2.20-Bt2.30 per kilo.
A cassava-trading source said farms and tapioca-flour producers lacked confidence in the qualifying conditions for participation in the scheme.
As the Nakhon Ratchasima provincial subcommittee monitoring the price-intervention project had not announced clear conditions, buying points could not be opened yesterday.
Provincial governor Chuan Sirinunporn also said farms and flour manufacturers lacked confidence in the scheme, particularly in regards to the fee for processing cassava into tapioca chip.
"They have delayed joining the project as they are waiting for the conditions to be clarified," Chuan said, adding that this would delay the pledging scheme in the province by two weeks.
In addition, officials need time to inspect farms and flour mills to ensure they have sufficient capacity and efficiency to handle large stocks, the governor said.
Teerichart Seikratok, secretary-general of the Northeast Cassava Farmers Association, said the delay in the pledging scheme meant farmers would lose out as they would not be able to sell all of their output.
They will also lose benefits when they do sell their cassava, because the amount they get falls when the crop is left on the ground, as its value for flour production then declines as a result.
An average of 1,000 tonnes of cassava production in the region enters the market each day. The delay in full implementation means farmers will lose Bt600 per tonne, or a combined Bt60 million per day, Teerichart said.
