The ministry said feed-meal producers should buy maize at prices above Bt8 per kilogram, while tapioca traders need to pay at least Bt1.90 per kilo for cassava.
Wiboonlasana Ruamraksa, director-general of the Internal Trade Department, said the ministry would also ask for the Cabinet’s approval to suspend debt collecting from farmers during harvest season. This would give farmers enough time to adjust to low prices of crops during the harvest.
About 4 million tonnes of maize will be harvested this year. That is less than the 7 million to 8 million tonnes required each year. To ensure a fair return for farmers during harvest season, the government has asked feed-meal manufacturers to pay above the set price, Wiboonlasana said.
She said that if any feed-meal or other manufacturers purchased maize below the set price, the ministry would consider stronger measures to set up further minimum pricing or come out with other measures to help farmers.
The government has also called for feed-meal producers to delay importing wheat until the end of the maize harvest season in February so the domestic maize price will not be affected.
In past years, wheat imports have increased strongly, reaching 3.4 million tonnes last year, as there has been no import duty under the Asean Free-Trade Agreement. This has caused cereal prices to drop in the Kingdom.
In addition, the government has asked tapioca traders to purchase cassava at Bt1.90 per kilo to protect farmers from falling prices. The ministry will next week ask for the Cabinet’s approval to allocate a budget of Bt1.4 billion to compensate cassava farmers and encourage them to delay cultivating fresh cassava during the high-output harvest season.
Cassava is currently traded at Bt1.60-Bt1.70 per kilogram, lower than last year’s price of Bt2.50 per kilo.
It is estimated that cassava production this year will reach 31 million tonnes, about 21 million tonnes of which will be cultivated from November to April.