Process Management

News last update:6 Aug 2012

More Thai corn sales after India export ban

The estimated rise in Thailand's 2008-09 corn crop of 3.7 million tons, up from the proceeding year's 3.6 million tons, is expected to double Thai corn exports on surging foreign demand, following India's recent corn export ban through October 15th.

The Indian ban has pushed Thai export corn prices to $350 per ton, up from $280 in late June and would probably rise further if demand continues to outpace supply, as exporters compete with feed producers to buy corn, primarily for the main buyers in Malaysia, Vietnam and Indonesia.

Thailand's feed producers have requested permission from the Commerce Ministry to raise their selling price by 20% to help offset the higher cost of corn which should remain high for the rest of the year.

Urgent review of farmland size
Skyrocketing food prices, drastic changes in the use of farmland and increasing fears of foreign invasion into the farm sector, has prompted the Thai authorities to determine the exact size of Thailand's farming area, - around 130-131 million rai, - based on the statistics of the Office of Agricultural Economics (OAE) statistics.

Farmland over the years, says Apichart Jongskul, OAE secretary-general, has been threatened by rapid urbanization, and more recently by "foreign invasions" of farming areas and it is important at this time, he says, to consider possible measures; including tax schemes, more support for farm owners, such as better marketing strategies and product-price support to encourage them to keep their land.

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