Published: 10/03/2012
Bangkok Post
Cambodian tapioca pellets have flooded the Thai market, depressing the local price of fresh cassava and jeopardising the success of the government's tapioca mortgage scheme, says Teera Tantipanitkool, manager of the Thai Tapioca Trade Association (TTTA).
The association was accused by the Internal Trade Department of colluding to hold down the price of tapioca pellets for export, causing farmers to sell at lower than cost.
This behaviour is against Sections 27 and 29 of the Trade Competition Act and Section 29 of the Price of Goods and Services Act.
But Mr Teera denied the allegation, blaming the price plunge on the influx of 300,000 to 400,000 tonnes of Cambodian tapioca pellets into Thailand the past several months.
The Cambodian product has apparently entered at night via Sa Kaeo and Chanthaburi provinces in the East.
Cambodian tapioca pellets cost less than five baht a kilogramme, as the local price of fresh cassava is 1.40 baht per kg. Thai tapioca pellets go for six baht per kg and fresh cassava between 1.70 and 1.80 baht.
TTTA president Seree Denworalak said exporters of tapioca pellets and flour compete to buy products for export based on market prices.
The association last October reported demand for cassava would be higher than supply and that farmers should be able to sell at 2.50 baht per kg without the need for a mortgage programme.
In Mr Seree's view, if the programme is real, the price should be stable at 2.50 baht per kg for fresh cassava root with 25% flour content.
The mortgage scheme set the price at 2.70 baht per kg when the programme began on Feb 1, increasing by 50 satang each month to reach 2.90 baht when the programme ends in May.
Each farmer can pledge up to 250 tonnes.
The government plans to claim 10 million tonnes under the project, but production is estimated at 20-25 million tonnes. So some of the product will be sold at market, competing with Cambodian product.
Since the government announced the mortgage scheme, the private sector has planned to buy and sell based on the mortgage price. But the government has been unable to ensure that farmers can pledge the product at the announced price.
"The government has to curb smuggling from Cambodia," he said.
The International Trade Department earlier issued a prohibition on transport of tapioca pellets in Sa Kaeo and Chanthaburi.
Mr Seree said exporters want to buy quality tapioca pellets, but the quality in the market sometimes falls short.
Thailand expects to export 4 million tonnes of tapioca pellets and 2 million tonnes of tapioca flour this year worth a combined 80 billion baht.
Bangkok Post
Cambodian tapioca pellets have flooded the Thai market, depressing the local price of fresh cassava and jeopardising the success of the government's tapioca mortgage scheme, says Teera Tantipanitkool, manager of the Thai Tapioca Trade Association (TTTA).
The association was accused by the Internal Trade Department of colluding to hold down the price of tapioca pellets for export, causing farmers to sell at lower than cost.
This behaviour is against Sections 27 and 29 of the Trade Competition Act and Section 29 of the Price of Goods and Services Act.
But Mr Teera denied the allegation, blaming the price plunge on the influx of 300,000 to 400,000 tonnes of Cambodian tapioca pellets into Thailand the past several months.
The Cambodian product has apparently entered at night via Sa Kaeo and Chanthaburi provinces in the East.
Cambodian tapioca pellets cost less than five baht a kilogramme, as the local price of fresh cassava is 1.40 baht per kg. Thai tapioca pellets go for six baht per kg and fresh cassava between 1.70 and 1.80 baht.
TTTA president Seree Denworalak said exporters of tapioca pellets and flour compete to buy products for export based on market prices.
The association last October reported demand for cassava would be higher than supply and that farmers should be able to sell at 2.50 baht per kg without the need for a mortgage programme.
In Mr Seree's view, if the programme is real, the price should be stable at 2.50 baht per kg for fresh cassava root with 25% flour content.
The mortgage scheme set the price at 2.70 baht per kg when the programme began on Feb 1, increasing by 50 satang each month to reach 2.90 baht when the programme ends in May.
Each farmer can pledge up to 250 tonnes.
The government plans to claim 10 million tonnes under the project, but production is estimated at 20-25 million tonnes. So some of the product will be sold at market, competing with Cambodian product.
Since the government announced the mortgage scheme, the private sector has planned to buy and sell based on the mortgage price. But the government has been unable to ensure that farmers can pledge the product at the announced price.
"The government has to curb smuggling from Cambodia," he said.
The International Trade Department earlier issued a prohibition on transport of tapioca pellets in Sa Kaeo and Chanthaburi.
Mr Seree said exporters want to buy quality tapioca pellets, but the quality in the market sometimes falls short.
Thailand expects to export 4 million tonnes of tapioca pellets and 2 million tonnes of tapioca flour this year worth a combined 80 billion baht.
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