Ministry to hold talks on support for organic sector
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The Commerce Ministry will hold discussions with makers of organic products on policies to promote Thailand as a hub for such products in Asean.
Malee Choklumlerd, inspector-general at the ministry, said it was cooperating with producers and farmers of organic products, which benefit society in terms of the environment and job creation, to find specific policies, possibly tax privileges, that would support this industry.
The military-led government has authorised a tax-restructuring plan, so there is a good chance for tax proposals centring on the organic industry to succeed, she said.
Additional measures, possibly cost reductions for inspections of products claiming organic status, may be introduced after input from the private sector.
Such inspections currently carry a high cost because there are no internationally accepted standards for all export markets. Most major markets for organic products, including the United States, the European Union and Japan, have their own standards. Thailand too has its own standards but they have not been accepted by other markets yet.
The early stage of such a cost-reduction plan would focus on coordination and clustering of farmers for inspection at one time so the average cost per farmer would be reduced. In the longer term, Thailand would push for internationally accepted standards in all markets.
Malee said other strategies could include improving awareness of organic-product markets throughout the supply chain, development of a database for proactive marketing planning, expansion of organic-product markets here and abroad, and providing various products that meet market demand.
Organic products require investments of money and time to ensure suitable conditions for cultivation. At least three years is needed for soil preparation. Operators will also need assistance in promoting their products if Thailand is to be an Asean hub for this sector.
The global market for organic products in 2012 was US$63.8 billion (about Bt2 trillion). The US market was the biggest, valued at $22.59 billion, followed by Germany at $7.04 billion. Average market growth is about 10 per cent per annum.
