PWO seeks bt700 million budget for maize import
The Public Warehouse Organisation (PWO), a state-owned enterprise overseen by the Commerce Ministry, will seek a budget of Bt700 million from the government for the import of 80,000 tonnes of maize to reduce farmers' feed-meal costs.
The project is part of the ministry’s measures to tackle the high price of livestock, mainly for layer-hens and swine.
Commerce Minister Boonsong Teriyapirom yesterday said he would allow the PWO to draw up a plan for the import of maize from neighbouring countries after the ministry found that the cost of feeding livestock had gradually increased, resulting in higher production costs for live animals and foods. He said the imports would help lower the cost of feed meal, and consequently ease both farmers’ production costs and people’s living costs.
Although maize imports are subject to zero tariffs under the Asean Free Trade Agreement, the government has imposed a quota on how much can be brought over a specified period to minimise the impact on domestic farmers. A PWO survey of farmers found they needed to import about 86,300 tonnes this year to satisfy feed-meal demand.
Under the government’s restriction, the PWO is the only organisation that can import maize outside the quota this year.
PWO president Sarawut Sakulmeerit said that while the Bt700 million required could be sought from private enterprises that want to use imported maize, the government may also need to provide funds in advance to import maize before the current stockpile is sold to users.
In addition, the agency plans to invest Bt34 million for the development of its warehouses in a bid to increase its own income, he said.
The PWO currently has an accumulated loss of Bt400 million. However, it owns warehouses, cold storage and piers where it stockpiles rice, shrimp, tapioca and maize surpluses to regulate prices. Rice is its major responsibility.
Sarawut said the agency would emphasise the upgrading of its normal warehouses to temperature-adjusted facilities, which would enable it to increase rental fees. It plans to generate overall rental income of Bt2.6 million a month from warehouses, against the present level of Bt600,000, after upgrading the facilities.
After developing its assets and increasing efficiency for stockpiling commodities and goods, the PWO aims to break even in the next five years, he added.
