by PressThai producers ask for corn export ban
Why the ban on corn exports from Thailand is important for producers
The Thai TFMA asks the government to ban the export of corn and soybean meal. This issue has been raised before, but due to the situation in the world market, its urgency has never been greater. According to experts, the restriction will reduce the shortage of feed for the livestock industry and stop the rise in prices for products in Thailand.
The TFMA representative said that in these conditions it is inexpedient to continue exporting important goods to the country. At the same time, demand on the domestic market continues to grow, forcing an increase in imports, which in the current reality are extremely expensive.
According to Pornsilp, allowing exports goes against an earlier agreement between the government and Thai feed producers. This document also suggests that the needs of local suppliers of soybean meal should be prioritized over imports.
In addition, the association asks the authorities to conduct regular inspections not of producers, but of intermediaries who are involved in the delivery of feed to the end consumer. The fact is that producers also provide the necessary reports on quality and technical processes every 10 days, while middlemen do not always act within the law and comply with all regulations.
According to a report from the Customs Department, Thailand’s corn exports last year totaled more than 93,600 metric tons. During the same period, the kingdom shipped more than 103,000 tons of soybean meal to other countries.
This year, Thailand has increased the supply of rice, amounting to 8 million tons, which is 31% more than it was in the previous period. The reason for the increase in exports was an attractive price for grain. In addition, local farmers plan to increase rice production.
This season, imports of wheat to the country are expected to decline by about 13%. In this case, the role is played by a decrease in demand for grain on the domestic market, which is due to the slow recovery of the economy after the pandemic. It should be noted that global prices for feed wheat continue to rise.
Last year, Thailand was the leader in the supply of canned sweet corn, the volume was about 213 thousand tons of products. The main consumers are Japan, Germany, and the UK. And Thailand offers on the world market the price of corn is much lower than, for example, China, which is considered the most expensive supplier of this product. What will be the situation with exports this year is still unknown, but it is likely that the kingdom will also reduce the supply of sweet corn. Fluctuations in the price of agricultural products on the world market force exporters and importers to regularly review the volume of sales and purchases.