Private sector urges govt not to intervene in cassava market

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BANGKOK, 11 September 2013 The private sector has urged the government not to intervene in the cassava market as the price of cassava is already in the appropriate range. 

According to Deputy Director General of the Department of International Trade Promotion (DITP) Panjit Pisawong, the Thai Tapioca Trade Association, along with 3 other cassava-related agencies, does not want the government to intervene in the cassava market, as the price of cassava is now stable and at a good level. He added that the production cost for cassava is 2.08 per kilogram, whereas the market price is 2.4-2.5 baht per kilo, which is already appropriate.

He also revealed that production cost is the factor that most adversely affects the cassava industry. The costs of labor, fertilizers, and transportation could put Thai farmers at a disadvantage, making it difficult for them to compete in the global market because other countries have lower production and transportation costs. To make the matter worse,Thailand has lately been facing labor shortages and the situation seems to deteriorate. Therefore, he suggested the government turn their focus to technology and productivity in order to compensate for the decreasing number of laborers.