BANGKOK, 23 August 2013 The Ministry of Commerce is asking the Thai Feed Mill Association (TFMA) to buy corns from farmers as there is an oversupply of corns in the market.
According to Commerce Ministry Niwatthamrong Boonsongpaisal, the TFMA has agreed to buy corns from farmers, with no strings attached, as requested by the Minister in order to help farmers get rid of their corn stockpiles. However, one giant company, who is a regular buyer of corns, will not be able to do so this year due to its financial problem.
The unidentified company usually buys 20% of corn produced in the country. Without its participation, the amount of corn supply has accumulated to 3.5 million tons so far since the current harvest season, which begins from August to October, began.
The TFMA is the biggest buyer of corn. It is estimated that 70% of corns produced each year is sold to the association. The TFMA will buy them at the market price, ranging between 8.8-9.2 baht per kilograms. The Commerce Minister further added that demand for corn is around 5-6 million tons each year, while Thailand can produce only 4.8 million tons a year.