Government to continue price guarantee scheme for some crops
The Commerce Ministry plans to continue the price guarantee scheme for various crops for the third year after the National Rice Policy and Administration Committee recently approved the rice price guarantee scheme for crop year 2020-21.
“The government’s price guarantee schemes have helped farmers face problems caused by prices plummeting due to various reasons, so they can still sell their produce at the guaranteed price,” Commerce Minister Jurin Laksanawisit said on Sunday. “However, not all crops will require a guarantee scheme, such as oil palm which is now sold at THB7 per kg, significantly higher than the THB2 per kg price recorded a few years ago. Corn price also has risen to THB10 per kg, while the guaranteed price is only THB8.50.”
Jurin added that latex is probably in need of the price guarantee scheme the most, as the current price has dropped to THB49 per kg, while the guaranteed price from last year is THB57.
“The price of latex has been plummeting due to the shutdown of rubber glove factories in Malaysia, our biggest market, to curb the Covid-19 outbreak. Meanwhile, domestic glove factories are at about 50 per cent capacity due to disease control measures."
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Jurin added that Thailand’s total export in the seven months of 2021 was THB7.4 trillion, increasing 16.2 per cent year on year, and four times the ministry’s earlier estimate that export would grow by only 4 per cent.
“The ministry hopes that the price guarantee scheme would further help boost exports in the rest of the year. We have already submitted the details for Cabinet approval and the schemes should be announced soon,” he said.
Jurin also added that the price guarantee schemes will not cover fruits and other non-economic crops, but the ministry will employ aggressive measures should farmers face price-related problems.
“The overall fruit market this year is still positive in terms of both output and price although some dealers could not travel to buy fruits from farms in certain provinces due to the Covid-19 lockdown,” he said.