Maize farmers plan court action to suspend imports of wheat
A GROUP of maize farmers from the Central and Northern regions plan to file a petition with the Administrative Court calling for the suspension of wheat imports as a way to combat a dramatic decline in the market price of their produce.
The farmers are from Ang Thong, Nakhon Ratchasima, Phetchabun, Mae Hong Son, Phitsanulok, Tak, Nan, Chiang Mai and Chiang Rai provinces.
Wheat imports have ballooned since tariffs on the commodity were waived in 2014.
Deputy Commerce Minister Suvit Maesincee met with large feed-meal producers last week to ask them to purchase maize at Bt8 per kilogram, but the effort failed.
The ministry was only able to get the producers to provide information on their import quantities, stockpiles, and pricing.
The domestic maize price now is only Bt6 per kilogram as feed-meal producers have shifted from maize to imported wheat to in order to save costs.
A Commerce Ministry source said farmers had complained that low purchases by feed-meal plants had combined with a high supply during the current harvest season to push down maize prices dramatically.
For their part, feed-meal producers said they could not purchase maize at the high price the ministry wanted as other cereal grains suitable for feed-meal production were cheaper.
Although feed-meal producers have previously said they would suspend wheat imports during the maize harvest season to ensure prices would not fall, the ministry has found that imports of wheat and DDGS (distiller’s dried grains with solubles, which are made from maize) had continued.
Significant jump in imports
According to an analysis by the ministry, import of wheat has increased significantly since 2014, when it totalled 593,000 tonnes, after the government waived import tariffs on wheat that year.
Wheat imports had jumped to 3.46 million tonnes by last year, and this year are expected to reach 5 million tonnes.
After the tariff was waived, the price of wheat dropped by Bt1-Bt2 a kilo.
The ministry also found that DDGS import had increased from 226,000 tonnes in 2014 to 462,000 tonnes last year. Higher use of DDGS to supply feed-meal production has also result in decreased use of domestically produced maize.
The ministry has reported that the major importers of wheat are feed-meal producers, as well as one food producer. They are Bangkok Producer Produce Merchandising, which is a subsidiary of Charoen Pokphand Group, Betagro, Laemthong Corporation, Sun Feed, and United Flour Mill.
