Measures to cap wheat imports kept

The government has maintained measures to cap wheat imports in a move to stabilise domestic maize and cassava prices.

Commerce minister Sontirat Sontijirawong, who met yesterday with a group of maize and cassava farmers, said the ministry’s measures requiring importers of wheat to purchase domestic maize at a ratio of 1:3 will remain intact as part of efforts to shore up domestic maize prices.

Imports of wheat for animal feed also require a permit, following a cabinet resolution last November.

The global price of wheat has fallen because of the world’s economic slowdown, while a lack of tariffs on imported wheat encourages animal feed makers to import it.

But Mr Sontirat said the government will also take into account the adequacy of domestic maize supply and competitiveness both of farmers and business operators as well as Thailand’s obligations to the World Trade Organization (WTO).

Thanks to the government’s measures, domestically-grown maize with 14.5% moisture content is priced 9.50-9.60 baht per kg, compared with 5-6 baht per kg last year.

The prices of fresh cassava root with 25% starch is quoted at 2.40-2.50 baht per kg, compared with 1.30-1.40 baht per kg in the same period last year.

Thailand waived import tariffs on wheat in 2013 at the request of animal feed producers. Before the move, wheat prices were about 1-2 baht higher than maize prices.

Imports rose following the waiver, and wheat prices have been 1-2 baht lower than maize prices since 2014.

In 2013, Thailand imported about 1 million tonnes of wheat. The figure rose to 1.4 million tonnes in 2014, and 3.5 million tonnes in 2015 and 2016.

Last year, the government’s measures prompted wheat imports to drop to 1.5 million tonnes.

Songsak Songserm-udomchai, president of the Crop Growers & Merchandisers Association, said Thailand is estimated to produce 5.5 million tonnes of maize in the 2017-18 harvest season, on par with last year.

Given the yearly output, Thailand is expected to import 3 million tonnes of maize if demand amounts to 8.1 million tonnes as claimed by livestock-related operators, he said.