Bangkok: The Ministry of Commerce is implementing strict controls on the import of 1 million tons of corn from the United States with assurances that this will not adversely affect local farmers.
According to Thai News Agency, the Ministry clarified that the cooperation between Thai and US private sectors in importing animal feed corn is under government regulations, which prioritize the purchase of domestically produced goods. The Ministry is focused on maintaining agricultural product price stability and ensuring the well-being of Thai farmers.
Mr. Kornnit Nonchui, spokesman for the Ministry of Commerce, addressed inaccuracies in reports about the corn import deal. He explained that the agreement between the Thai and US private sectors aims to bolster food security and provide additional import options. Thailand's annual requirement for animal feed corn stands at approximately 9 million tons, with domestic production accounting for only 5 million tons. Consequently, imports and alternative raw materials, such as wheat, are necessary to fulfill the remaining demand.
Mr. Kornnit emphasized that strict regulations govern the import of animal feed raw materials. Businesses are mandated to purchase all domestically produced corn first and adhere to government pricing conditions. Collectors in five provinces must buy corn with 30% moisture content at no less than 7.05 baht per kilogram, while factories in Bangkok and its vicinity must purchase corn with 14.5% moisture content at no less than 9.80 baht per kilogram.
A spokesperson from the Ministry highlighted that the volume of corn imports from neighboring countries has decreased following the introduction of measures to import corn without burning, aimed at tackling the PM2.5 dust issue. Additionally, the ongoing conflict in the Middle East has led to increased costs for wheat and other animal feed raw materials, prompting the private sector to explore additional sources to prevent shortages and sustain the competitiveness of the Thai livestock industry.
The Ministry has also engaged with the Thai Rice Millers Association to ensure that corn imports do not negatively impact the prices of rice bran, broken rice, and paddy rice for farmers. Both parties are committed to regulating the animal feed supply chain to maintain market balance.
For imported agricultural products, the Department of Agriculture oversees the establishment of inspection and pest control measures through protocols, traceability, and random inspections at import points to mitigate any adverse impacts on the ecosystem and local farmers.
Furthermore, any imports exceeding the 1 million ton quota will face import duties of up to 72 percent and an additional fee of 180 baht per ton, making it challenging for them to compete cost-wise with domestic raw materials.