Cut in food input tariff urged

After a meeting with food producers and exporters yesterday, Nuntawan Sakuntanaga, director-general of the International Trade Promotion Department of the Commerce Ministry, said food enterprises wanted the government to help reduce costs of production and eliminate tariff barriers since they are facing declining exports to many markets.

According to the department, Thai food export grew by 7.8 per cent year on year to US$8.77 billion (Bt276 billion) in the first half of 2012. However, that was lower than the normal growth rate for this sector of at least 10 per cent a year. 

During the period, shrimp export dropped 8 per cent to $1.32 billion, and fruits and vegetables by 4 per cent to $1.52 billion. Meanwhile export of canned and processed foods grew by 11 per cent to $2.42 billion, chicken rose 17 per cent to $1.07 billion, and shipments of seasonings, beverages and rice products increased by 20 per cent to $2.4 billion.

 

Rising costs 

Nuntawan said exporters had voiced higher concern over rising costs of production. Food producers have called on the government to reduce import tariffs for raw materials such as soybean meal, mackerel and crab.

Shrimp exporters have also called on the government to help them find new markets as they have until now relied mainly on Europe, which is facing an economic downturn.