Two Chinese firms plan crop-processing plants here: minister
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Two Chinese firms have shown strong interest in setting up farm-goods-processing plants in Thailand, Commerce Minister Niwatthumrong Boonsongpaisan says.
“The promoting of Chinese investment in agricultural industry will also help increase demand for crops in Thailand and stem the falling prices of agricultural products,” Niwatthumrong said yesterday, while declining to elaborate on the two possible deals.
China will soon sign purchase contracts for 1.2 million tonnes of rice, 200,000 tonnes of rubber and 300,000 tonnes of tapioca, increasing the opportunity for the government to release stocks of such produce amid falling prices.
Thailand has successfully increased sales of crops to China, which is one of the highest-potential markets for Thailand to unload its commodities, he said.
Initially, Chinese firms plan to start up rubber- and tapioca-processing plants by next year.
The government will continue encouraging more investors to establish processing plants for crops as it is an efficient strategy to increase demand for agricultural outputs.
To clear out inventory, the ministry is also considering opening the fourth round of rice bidding this week.
The ministry reported that about 10 million tonnes of unsold rice remained stored in granaries.
Deputy Commerce Minister Yanyong Phuangrach said the ministry also planned to sell more rubber to other countries to shore up prices of that commodity in the market. The targeted overseas markets are China, Japan and European nations.
According to the ministry’s data, exports of rubber shrank 13 per cent in value to US$4.69 billion (Bt151 billion) and 0.1 per cent in volume to 1.71 million tonnes during the first seven months of this year.
Shipments of rice dropped 1.6 per cent to $2.53 billion or 5.1 per cent to 3.61 million tonnes in the period.
