Shrimp exporters seek govt help in accessing liquidity as disease, high baht batter industry
Play
Shrimp exporters have appealed to the government to help them cope with the problems they face from shrimp disease and the baht's strength by facilitating farmers' and businesses' access to financial liquidity, as shipments of their product could drop sig
After meeting with Commerce Minister Boonsong Teriyapirom yesterday, Poj Aramwattananont, president of the Thai Frozen Foods Association, said shrimp export would decline seriously this year because of the dual problem of early mortality syndrome (EMS) reducing production and the strong currency.
“Shrimp production is expected to drop this year from the normal 500,000 tonnes valued at Bt80 billion to less than 400,000 tonnes. The impact of the disease is worse than previously thought, while the baht’s strength has also seriously hurt exporters,” Poj said.
The association called for three assistance measures from the government. The first is to set aside a budget from the Farm Policy and Assistance Measures Committee to help small shrimp farmers and exporters gain more liquidity. Second is to provide soft loans, and third is to work to extend the export period and allow more credit for exporters.
Poj said that because of EMS, production had dropped by 40 per cent from the normal level of 100,000 tonnes to only 57,000 tonnes in the first quarter.
The disease began hitting Thai shrimp late last year.
Because of the baht’s appreciation, shrimp exporters have faced losses since early this year, he said. Exporters cannot increase prices to offset the currency’s strength and the higher cost of production and raw materials.
If the baht stays at the level of 28 against the US dollar, shrimp export will drop seriously. This would affect not only exporters but also shrimp farmers, Poj added.
According to Commerce Ministry data, the value of shrimp export in the first quarter dropped 5.4 per cent year on year to US$505 million (Bt15 billion).
