Thailand to import another 100,000 tonnes of fertiliser from Saudi Arabia
Commerce Minister Jurin Laksanawisit met with Yousef Abdullah Al-Benyan, CEO of Saudi Basic Industries Corporation (SABIC), on Tuesday in a move to import 100,000 more tonnes of much-needed fertiliser.
Jurin said SABIC is one of the top fertiliser companies in the world, trading with more than 50 countries and now Thailand since Thai-Saudi relations were restored.
He said SABIC has been in operation for almost 50 years in the fields of petroleum, fertiliser, chemicals, and medical equipment.
Jurin mentioned that the Saudi government wants to facilitate negotiations so Thailand could import more fertiliser from the Middle East country.
The minister pointed out that the price of fertiliser in the world market is high, while Thailand has been forced to import almost 100 per cent of its needs.
Moreover, shipping costs have also increased due to rising fuel prices, which is keeping prices in the domestic market high.
Jurin said he must solve two problems – price and quantity – as farmers need to have enough fertiliser.
The Internal Trade Department will come up with a new price structure, which would be in line with actual import costs, he said, adding that it would be fair to farmers as they are users and importers.
Jurin said he approved a contract to import 323,000 tonnes of fertiliser from Saudi Arabia in July and he had negotiated for another 102,000 tonnes.
He expected imports to solve the quantity problem, but the price would still be according to market mechanisms. So his ministry is teaming up with the Agriculture and Cooperatives Ministry to find sources of fertiliser at special prices to help farmers. He admitted this was not easy, but he would try his best.
Jurin said both ministries had previously joined hands with the Thai Fertiliser Producers & Trade Association to reduce the price of 4.5 million sacks of fertiliser by 20 to 50 baht per sack.
Moreover, he is also considering a measure to subsidise fertiliser prices for farmers but is awaiting a response from associations related to the country’s finances.
Jurin said it would be quicker to import fertiliser from Saudi Arabia as the government had allowed imports from another Saudi firm called Ma’aden.
According to the International Trade Promotion Department, Saudi Arabia is the sixth top fertiliser exporter in the world. The country exports fertiliser mostly to India, Bangladesh, Brazil, the US, Australia, and now Thailand, respectively.
The top three exported fertilisers by Saudi Arabia are NPK, nitrogen and potassium.
