B3bn loans sought for equipment

       The Office of the Cane and Sugar Board is seeking cabinet approval for 3 billion baht of loans to help cane farmers buy mechanised cane-cutters to alleviate a labour shortage in the sector.
       The use of cane-cutting trucks would help overcome a shortfall of workers that has persisted for years in the labourintensive cane-cutting industry, said Prasert Tapaneeyangkul, the secretarygeneral of the OCSB.
       "The OCSB is seeking the cabinet's approval for Bank for Agriculture and Agricultural Co-operatives (BAAC) to grant cane farmers 3 billion baht in loans for three harvesting seasons, starting from the current season to purchase cane cutting trucks," he said.
       The trucks, which cost 5-10 million baht each, can cut 200 to 500 tonnes of cane per day compared with one to two tonnes per manual worker. Up to 700,000 workers are needed to harvest the 6.2 million rai of cane plantations this season.
       "Normally, cane cutting needs to be done within 100 days. Some farmers have opted to use fire tactics to speed up cane cutting but this often ends up burning the cane and reducing yields and the sweetness," said Mr Prasert.
       "Using fire should not be the option.Machinery use will solve the labour shortage," he added.
       To promote the use of technology,the OCSB will provide interest rate subsidies to encourage farmers to apply for the proposed loans. Subsidy rates could vary between 3.5% and 5.5% depending on BAAC decision, he said.
       Meanwhile, the OCSB is preparing to issue a statement to counter US claims that the Thai sugar industry exploits child and illegal labour.
       The office will call a meeting with cane farmers' associations and sugar millers to compile a report to counter the accusations."We export only 17,000 tonnes of sugar to the US. But as we are the world's third largest sugar exporter,we need to defend ourself against this allegation that needs to be corrected to maintain our reputation," he said.
       Other industries such as garments and prawn farms have faced similar allegations. The Foreign Ministry and the Commerce Ministry's Foreign Trade Department are preparing to respond to the allegations, Mr Prasert said.