By: CHATRUDEE THEPARAT

Falling prices exasperate farmers

The government has bowed to shrimpers' demands, agreeing to spend 1.4 billion baht to pledge 10,000 tonnes of vannamei white shrimp.

The new shrimp mortgage plan approved late Wednesday by the Farmers Assistance Policy Committee would be run by the Public Warehouse Organisation (PWO) from July 15 until Sept 30.

Farmers are required to redeem their mortgaged shrimp within two months. The mortgage prices will vary based on the size of the shrimp, with 40 shrimp per kilogramme to be pledged at 155 baht, 50 shrimp for 135 baht, 60 shrimp for 125 baht, 70 shrimp for 110 baht, and 80 shrimp for 100 baht.

Southern shrimp farmers have recently threatened to stage road blockades again if the government fails to take effective measures to shore up shrimp prices.

Domestic shrimp prices have been declining since early this year as a result of slow exports. The industry has revised its shrimp export forecast down this year to 396,000 tonnes, from 495,000 tonnes shipped in 2008.

Shrimp production this year is forecast at about 400,000 tonnes, down from 464,000 tonnes the year before.

June and July are the peak seasons for shrimp but prices have been falling. Prices of 50 shrimp per kilogramme this week have been quoted at 116 baht, compared with 130 to 140 baht early this year. A kilogramme of 40 shrimp is lower at 134 baht compared with 150 baht early in then year, with 60 shrimp fetching 105 baht, down from 120 baht.

Sompong Chaowangsai, president of Thai Aquaculture Association, hailed the government's mortgage scheme, saying the pledging programme would be an effective and short-term way to absorb a surplus.

Any delays would cause farmers to suffer while benefiting exporters since they could obtain cheap products, he said.

Deputy Prime Minister Korbsak Sabhavasu, who chairs the Farmers Assistance Policy Committee, said the government also planned to allocate 1.2 billion baht for the Bank for Agriculture and Agricultural Co-Operatives to operate contract farming to buy 30,000 tonnes of shrimp from farmers.