Ministry arranges matching event to prop up maize price
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The Commerce Ministry will set up a matching event for maize farmers with feed-meal producers to solve the problem of falling price during the maize harvest season this month, and ensure that the government will not need to set up a price-intervention pro
Deputy Commerce Minister Yanyong Phuangrach said the move follows increasing concern over the falling price of maize due to the high supply in the harvest season.
About 3 million tonnes from a total of 4.7 million tonnes of rice are expected to hit the market during the harvest season starting early September to November this year.
“The government would not need to pledge maize or launch any price intervention programme to prop up the price if feed-meal producers could directly purchase maize from the farmers during the harvest season,” said Yanyong.
He said pledging would be the last choice for the government, and only if there was a drastic fall in price.
To help farmers, the government also plans to subsidise the cost of production for farmers.
Feed-meal producers who promise to shoulder the supply of maize from the market include Thai Feedmeal Producers Association, CPF, Betagro, Krungthai Feedmeal, and the Hen and Hen-egg Producers Cooperatives.
The ministry will not allow maize imports from neighbouring countries after the end of this month.
Yanyong said that as long as the price of maize did not drop to a level unacceptable to the farmers, the government would not intervene in the market.
However, to ensure stable prices, the government will seek cooperation from producers to use and purchase maize at a suitable price.
The current market price for maize is Bt9.50 a kilogram, down slightly from last month’s Bt10.50 a kilo. The cost of maize production is Bt6.39 a kilo.
