Prayut urges price war across borders

He also urged unregistered small and medium-sized enterprises, estimated to number about 2.2 million, to come under the taxation system, suggesting some kind of tax amnesty for those that do so. 

“There are currently 2,000 government-supported farmers’ markets around the country. These markets allow people to find out the real prices of agricultural products and help farmers bypass the middlemen, who are always trying to keep crop prices low while reselling produce at a higher price for their own profit,” he said at the FTI’s annual general meeting.

“Look at Japan, where most fishermen split what they have caught into two piles, keeping the better-quality fish to sell themselves while transporting the rest to the factories as a normal practice,” he said.

He said the central government and local administrations could support farmers in the packaging process. Meanwhile the Ministry of Commerce would be instructed to look into the possibility of increasing the number of farmers’ markets around the country.

Prayut also floated the idea of Thai manufacturers venturing into neighbouring countries with products of daily necessity that cost less but are of the same quality as similar items made locally. People in neighbouring countries are fond of Thai products but reluctant to buy because of their relatively higher prices, he added. 

“Our neighbours like our products and they think highly of them but, at the same time, some also think they are a bit expensive. So Thai producers should find a way to cut their manufacturing costs, such as in the packaging process, and re-value them before sales in these markets. The packaging does not have to be too colourful and you do not have to re-advertise there since people are already using [such products],” he said.

“Can we do it? Take toothpaste as an example. If we can make a product of the same quality and cleansing properties, but not so colourful, it can help lower production cost and price. If anyone here can do it, I would offer incentives, such as lower tax,” he said.

FTI chairman Supant Mongkolsuthree said he agreed with the prime minister that farmers should bypass the middleman to increase their incomes. He also believed that same-quality products at lower prices for the frontier markets could be manufactured, and the FTI was willing to work with the government to convince producers on this aspect. However, such persuasion must be spearheaded by the public sector, he added.

“E-commerce is another channel for farmers and operators to bypass the middleman and go straight to the customers. In terms of lower-value products for the neighbouring markets, the government has to show real promotional effort and tangible support along with incentives for it to be successful,” he said.