Three major Thai farm goods - coffee beans, rice and palm oil - will lose their competitiveness under the Asean Economic Community if farmers and the government neglect to increase productivity and cut production costs, researchers warned yesterday.
A study by the University of the Thai Chamber of Commerce's International Trade Study Centre showed those three goods stood to lose a combined US$60 million (Bt2 billion) to other Asean countries after liberalisation once the Asea Free Trade Agreement (Afta) comes into effect next year.
Cenyre director Art Pisanwanich said present inefficiency in productivity, logistics and cost management would hurt the competitiveness of Thai farm products under Afta.
"Although overall exports of major farm goods will increase following trade liberalisation, the market share of Thai exports in other Asean countries will decrease, because Thailand is inefficient when it comes to productivity and cost management," said Aat.
Thai farmers must urgently develop their productivity, in order to ensure their competitiveness within Asean. They must also decrease costs for production and lofistics and diversify from commodities to high-value-added goods.
The government should draw up a strategy to strengthen agricultural practices - one that not only promotes higher prices via intervention schemes, but also development of productivity.
Aat said that local rice productivity was the lowest among Asean countries. For example, in this year's crop, the yield per rai for rice is 452 kilograms in Thailand, 579kh in Laos and Malaysia, 611kg in the Philippines, 787kg in Indonesia and 792kg in Vietnam.
Local coffee beans will be hardest hit by Vietnam. Thailand's Asean market share of the product will decline 0.1 per cent, or US$200,000 (Bt6.68 million), to Vietnam's benefit between next year and 2015.
Thailand's export market share in Asean for coffee beans is now 2.8 per cent, while Vietnam commands 61.1 per cent.
Rice, Thailand's major export crop, will also lose to Vietnam. About 0.5 per cent of the market share, worth $13 million, will pass to that country. For palm oil, 2.6 per cent of the market share, worth $46 million, will go to Malaysia.
At president, Thai rice exports crop, will also lose to Vietnam. About 0.5 per cent of the market share, worth $13 million, will pass to that country. For palm oil, 2.6 per cent of the market share, worth $46 million, will go to Malaysia.
At present, Thai rice exports have a 28.9-per-cent market share within Asean, while Vietnam enjoys 71.1 per cent. Thai palm oil has a 6.4-per-cent market share in Asean, while Malaysia commands 34.4 per cent.
Tapioca will be the only major Thai agricultural export to enjoy a higher market share within Asean, increasing 0.1 per cent, or $5,000.
Import tariffs on rice and palm oil, which are 5 per cent now, will be elimated next year. Thailand's tariff on coffee beans will be reduced from 30 per cent to 20 per cent next year and then 5 per cent in 2015, because the Kingdom classifies coffee beans as a sensitive product.
Chainant Ukosakul, vice chairman of the unversity's committee on trade rules and international trade, questioned whether Thailand was ready for free trade in Asean, saying the government had no sustainable or integrated plans for developing agriculture.
He urged the government to draw up plans to develop the various farm sectors and improve efficiency in custom procedures, in order to serve trade liberalisation under the AEC next year.
Tuesday, October 20, 2009
Friday, October 2, 2009
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.
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.
STRATEGY TO FOCUS ON CORE BUSINESSES
The Wattanavekin family plans to expand its key businesses-hotels and sugar mills.
Khunying Natthika Wattanavekin said the family has developed a new strategy for its hotel business, which is run by The Erawan Group, an equal joint venture between the Wattanavekin and Wongkusolkit families. The latter operates the Mitrphol Sugar Group of sugar-mill operators.
"We have delayed about four new hotel projects, mainly upcountry, including the I-Bis hotel in Hua Hin. We will focus on refurbishing our existing hotel properties, such as the Grand Hyatt [Erawan] in Bangkok and the Hyatt Regency in Hua Hin, to prepare for the recovery of the local tourism sector, which is expected next year," said Natthika, who is on the board of directors at the Grand Hyatt Erawan Hotel.
The Erawan Group operates 15 hotels run by international chains including Grand Hyatt, JW Mariott, Courtyard, Renaissance, I-Bis and Sixth Sense. The group recently opened a 300-room Holiday Inn in Pattaya.
"Three to four years ago, we launched our strategy, selling Amarin Plaza, a shopping complex at the Ratchprasong internation, back to the landlord so that we could concentrate on constructing and developing hotels, which is our field of expertise.
"After building them, we appoint international chains to run our hotel properties," said Natthika.
She said the group had set an investment budget of about Bt200 million to renovate the eight-year-old Hyatt Regency Hua Hin.
"So far this year we have renovate half of the 211 guestrooms and the lobby of our Hyatt Regency Hua Hin hotel. The renovations of the rest of the hotel's guestrooms and the Regency Club will be completed by the end of this year" said Natthika.
She said the group would also renovate the balcony area of the Grand Hyatt Erawan by the end of this year to include a restaurant serving international cuisine.
"We have also restructured The Erawan Group by promoting top executives to the board of directors," said Natthika.
Natthika said the Wattanavekin family had three major business groups, which include both joint ventures and owned firms: the hotel group, the sugar-mill business, and the Kiatnakin Group of banks and financial institutions.
"We run the businesses professionally, transparently and according to the ethical code and philosophy of my father, Kiat Wattanavekin, founder of the Kiatnakin Group," she said, adding that the family started in the liquor and construction businesses before diversifying into sugar milling and finance about 50 years ago.
Natthika is also chairman and CEO of Eastern Sugar Group, which operates a sugar will in Sa Kaew province.
The group recently upgraded the processing machines at the sugar mill to increase production capacity to 21,000 tonnes a day from 18,000 tonnes.
"We have received permission from the local authorities to increase our production capacity by another 12,000 tonnes a day.
"We will complete this additional expansion within the next three to five years," she said.
Natthika said the group recently expanded its sugar operation by producing ethanol from molasses. With an additional investment of more than Bt1 billion, the factory is now able to produce 150,000 litres of ethanol a day.
Applying the Alfa Lava and Delta T production system originated in the US, the factory is able to produce ethanol from both sugar molasses and tapioca chips.
Natthika, who is also chairman of the Thai Sugar and Bio-Energy Producers Association, said the government should draw up medium-and long-term plans to support and promote the productivity of local sugarcane farmers, especially in the areas of water resources, and research and development of news sugar-cane genes.
Khunying Natthika Wattanavekin said the family has developed a new strategy for its hotel business, which is run by The Erawan Group, an equal joint venture between the Wattanavekin and Wongkusolkit families. The latter operates the Mitrphol Sugar Group of sugar-mill operators.
"We have delayed about four new hotel projects, mainly upcountry, including the I-Bis hotel in Hua Hin. We will focus on refurbishing our existing hotel properties, such as the Grand Hyatt [Erawan] in Bangkok and the Hyatt Regency in Hua Hin, to prepare for the recovery of the local tourism sector, which is expected next year," said Natthika, who is on the board of directors at the Grand Hyatt Erawan Hotel.
The Erawan Group operates 15 hotels run by international chains including Grand Hyatt, JW Mariott, Courtyard, Renaissance, I-Bis and Sixth Sense. The group recently opened a 300-room Holiday Inn in Pattaya.
"Three to four years ago, we launched our strategy, selling Amarin Plaza, a shopping complex at the Ratchprasong internation, back to the landlord so that we could concentrate on constructing and developing hotels, which is our field of expertise.
"After building them, we appoint international chains to run our hotel properties," said Natthika.
She said the group had set an investment budget of about Bt200 million to renovate the eight-year-old Hyatt Regency Hua Hin.
"So far this year we have renovate half of the 211 guestrooms and the lobby of our Hyatt Regency Hua Hin hotel. The renovations of the rest of the hotel's guestrooms and the Regency Club will be completed by the end of this year" said Natthika.
She said the group would also renovate the balcony area of the Grand Hyatt Erawan by the end of this year to include a restaurant serving international cuisine.
"We have also restructured The Erawan Group by promoting top executives to the board of directors," said Natthika.
Natthika said the Wattanavekin family had three major business groups, which include both joint ventures and owned firms: the hotel group, the sugar-mill business, and the Kiatnakin Group of banks and financial institutions.
"We run the businesses professionally, transparently and according to the ethical code and philosophy of my father, Kiat Wattanavekin, founder of the Kiatnakin Group," she said, adding that the family started in the liquor and construction businesses before diversifying into sugar milling and finance about 50 years ago.
Natthika is also chairman and CEO of Eastern Sugar Group, which operates a sugar will in Sa Kaew province.
The group recently upgraded the processing machines at the sugar mill to increase production capacity to 21,000 tonnes a day from 18,000 tonnes.
"We have received permission from the local authorities to increase our production capacity by another 12,000 tonnes a day.
"We will complete this additional expansion within the next three to five years," she said.
Natthika said the group recently expanded its sugar operation by producing ethanol from molasses. With an additional investment of more than Bt1 billion, the factory is now able to produce 150,000 litres of ethanol a day.
Applying the Alfa Lava and Delta T production system originated in the US, the factory is able to produce ethanol from both sugar molasses and tapioca chips.
Natthika, who is also chairman of the Thai Sugar and Bio-Energy Producers Association, said the government should draw up medium-and long-term plans to support and promote the productivity of local sugarcane farmers, especially in the areas of water resources, and research and development of news sugar-cane genes.
Friday, September 25, 2009
GOVT URGED TO STABILISE ETHANOL COSTS
Ethanol manufacturers are calling for the government to increase ethanol reserves to stabilise production costs, which have risen in line with sugar prices and thus affected oil retailers.
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
El Nino brings sweet deals to cane growers
Local cane farmers and the sugar industry are expected to benefit from high global sugar demand and prices over the next 2-3 years, according Sirivuthi Siamphakdee, vice-chairman of the Thai Sugar Millers Corporation.
Climate change as a result of the El Nin~ o effect will likely continue to suppress global sugar production in the coming years.
Global sugar production is growing yearly but at a slower pace than demand, as the climate change have an impact on the yields of the world's large sugar producers.
"Since weather is an uncontrollable factor, finding solutions to this problem may take two or three years so sugar prices should be high for a while," Mr Sirivuthi said.
As well, production costs are likely to be steady or to increase because crude prices are projected to rise further in line with the recovering global economy.
In addition, Mr Sirivuthi said global sugar demand was not the sole dominant factor in determining its price.The product has in recent years become an appealing commodity for speculation.
"White refined sugar is trading in the global market at about $580 per tonne at present, with a trend to rise to $600 sometime soon. So the overall outlook of the industry's income from exports will still be bright over the next few years," he said.
At this rate, exported sugar remains relatively more expensive than domestic sugar and does not provide a persuasive margin for traders to smuggle the domestic output for sale to overseas consumers.
Chalush Chinthammit, assistant vice-president of KSL Group Plc, pointed out that local authorities should find measures to block illegal attempts to export local sugar only when the export price surges above $600 per tonne.
"Next month, related industry bodies will discuss domestic sugar allocation for the following harvesting year, which should be higher than this year's allotted quotas due to the yearly increase in domestic consumption," Mr Chalush said.
"So even if the export price is higher,ensuring sufficiency of domestic consumption is the first priority."
So far, millers and farmers have sold 72% of the export quota in the 2009-10 harvesting year at an average price of 18 cents per kilogramme.
The earlier-than-usual selling agreements are attributed mainly to the attractive price.
Thanks to these factors, local cane farmers can expect to receive more than 1,000 baht per tonne for their cane, compared to 830 baht in the 2008-09 harvesting season.
The crops with higher CCS or sweetness yield should fetch even more per tonne, an incentive for cane farmers to work harder to increase their yields and expand cultivation land.
Mr Sirivuthi, also president of the Thai Ethanol Manufacturers Association, also discussed the ethanol price outlook, saying that the price of molasses had risen lately due to seasonal tight supply, which should improve when the cane-crushing season starts in November.
He still insists the molasses price increase has nothing to do with expensive sugar prices.
"One way to solve this is for petrol operators to increase their ethanol stocks. The Energy Ministry has introduced this initiative, as well as regulations to stabilise the ethanol price,"said Mr Sirivuthi.
Climate change as a result of the El Nin~ o effect will likely continue to suppress global sugar production in the coming years.
Global sugar production is growing yearly but at a slower pace than demand, as the climate change have an impact on the yields of the world's large sugar producers.
"Since weather is an uncontrollable factor, finding solutions to this problem may take two or three years so sugar prices should be high for a while," Mr Sirivuthi said.
As well, production costs are likely to be steady or to increase because crude prices are projected to rise further in line with the recovering global economy.
In addition, Mr Sirivuthi said global sugar demand was not the sole dominant factor in determining its price.The product has in recent years become an appealing commodity for speculation.
"White refined sugar is trading in the global market at about $580 per tonne at present, with a trend to rise to $600 sometime soon. So the overall outlook of the industry's income from exports will still be bright over the next few years," he said.
At this rate, exported sugar remains relatively more expensive than domestic sugar and does not provide a persuasive margin for traders to smuggle the domestic output for sale to overseas consumers.
Chalush Chinthammit, assistant vice-president of KSL Group Plc, pointed out that local authorities should find measures to block illegal attempts to export local sugar only when the export price surges above $600 per tonne.
"Next month, related industry bodies will discuss domestic sugar allocation for the following harvesting year, which should be higher than this year's allotted quotas due to the yearly increase in domestic consumption," Mr Chalush said.
"So even if the export price is higher,ensuring sufficiency of domestic consumption is the first priority."
So far, millers and farmers have sold 72% of the export quota in the 2009-10 harvesting year at an average price of 18 cents per kilogramme.
The earlier-than-usual selling agreements are attributed mainly to the attractive price.
Thanks to these factors, local cane farmers can expect to receive more than 1,000 baht per tonne for their cane, compared to 830 baht in the 2008-09 harvesting season.
The crops with higher CCS or sweetness yield should fetch even more per tonne, an incentive for cane farmers to work harder to increase their yields and expand cultivation land.
Mr Sirivuthi, also president of the Thai Ethanol Manufacturers Association, also discussed the ethanol price outlook, saying that the price of molasses had risen lately due to seasonal tight supply, which should improve when the cane-crushing season starts in November.
He still insists the molasses price increase has nothing to do with expensive sugar prices.
"One way to solve this is for petrol operators to increase their ethanol stocks. The Energy Ministry has introduced this initiative, as well as regulations to stabilise the ethanol price,"said Mr Sirivuthi.
Wednesday, September 16, 2009
INDUSTRIES READY TO STAND IN DEFENCE AGAINST US CHARGES
Three Thai industries-shrimp, garment and sugar-may face difficulties in exports to the US next year due to accusations of hiring child and migrant labour.
Kessiri Siripakorn, minister (commercial) for the Office of Commercial Affairs in Washington DC, said the US Labour Department had issued an announcement against the industries.
"Thai industries will have 90 days, until the middle of December, to clarify about the accusations. If they may be subjected to trade barriers," said Kessiri.
She called for the government and related industries to discuss the matter and present clear evidence to defend their industries.
Kessiri warned that under the Barack Obama administration, all industries must be aware of new non-tariff barriers, particularly ones focusing on labour and environment.
Thai manufacturers would face greater difficulties in exporting if they do not promptly deal with rising non-tariff barriers, she said.
Poj Aramwattananont, president of Thai Frozen Foods Association, said the US government report was untrue and the association had already presented evidence to the US Embassy in Bangkok.
The association will also present evidence regarding the matter to Washington as the association has frequently worked in cooperation with Immigration Custom Enforcement for inspecting all factories and their suppliers to ensure they have not hired any child or migrant labour in the industry.
So far, more than 1,000 factories have been investigated. The industry employs more than a million people. We are confident no child or migrant labour was hired in our industry, Poj said.
To ensure that the shrimp and other industries will not face any obstacles resulting from the report, the association will soon meet the Foreign Ministry and related Thai government agencies to clarify the issue to the US government.
Wallop Vitanakorn, secretary general of the Thai Garment Manufacturers Association, said the US report must have been the result of a misunderstanding.
He said most garment exporters to the US must normally comply with high standards required by their importers, including labour issues.
Export of garments to the US must follow a "code of conduct" which specifies that no migrant labour of child labour must be hired in the industry. Moreover, under the agreement between Thai garment manufacturers and American buyers, it states that employers must have a fair contract with laborers, including restricting maximum period of work to 60 hours a week, and set a fair payment and days off, as per the law.
Wallop said American buyers also regularly send teams to inspect their factories every six months to ensure the producers had followed the code of conduct.
He said it was impossible for garment exporters to break this tight rule. The association will soon cooperate with the Thai government and collect information to defend against this accusation.
Under the Barack Obama administration, all industries must be aware of new no tariff barriers, particularly ones focusing on labour and environment.
Kessiri Siripakorn, minister (commercial) for the Office of Commercial Affairs in Washington DC, said the US Labour Department had issued an announcement against the industries.
"Thai industries will have 90 days, until the middle of December, to clarify about the accusations. If they may be subjected to trade barriers," said Kessiri.
She called for the government and related industries to discuss the matter and present clear evidence to defend their industries.
Kessiri warned that under the Barack Obama administration, all industries must be aware of new non-tariff barriers, particularly ones focusing on labour and environment.
Thai manufacturers would face greater difficulties in exporting if they do not promptly deal with rising non-tariff barriers, she said.
Poj Aramwattananont, president of Thai Frozen Foods Association, said the US government report was untrue and the association had already presented evidence to the US Embassy in Bangkok.
The association will also present evidence regarding the matter to Washington as the association has frequently worked in cooperation with Immigration Custom Enforcement for inspecting all factories and their suppliers to ensure they have not hired any child or migrant labour in the industry.
So far, more than 1,000 factories have been investigated. The industry employs more than a million people. We are confident no child or migrant labour was hired in our industry, Poj said.
To ensure that the shrimp and other industries will not face any obstacles resulting from the report, the association will soon meet the Foreign Ministry and related Thai government agencies to clarify the issue to the US government.
Wallop Vitanakorn, secretary general of the Thai Garment Manufacturers Association, said the US report must have been the result of a misunderstanding.
He said most garment exporters to the US must normally comply with high standards required by their importers, including labour issues.
Export of garments to the US must follow a "code of conduct" which specifies that no migrant labour of child labour must be hired in the industry. Moreover, under the agreement between Thai garment manufacturers and American buyers, it states that employers must have a fair contract with laborers, including restricting maximum period of work to 60 hours a week, and set a fair payment and days off, as per the law.
Wallop said American buyers also regularly send teams to inspect their factories every six months to ensure the producers had followed the code of conduct.
He said it was impossible for garment exporters to break this tight rule. The association will soon cooperate with the Thai government and collect information to defend against this accusation.
Under the Barack Obama administration, all industries must be aware of new no tariff barriers, particularly ones focusing on labour and environment.
Brisk sales to India
Sales of Thai white sugar to India, the world's largest sugar consumer, are expected to reach 200,000 tonnes by year-end, with around 75,000 tonnes already traded so far, dealers said yesterday.
India has allowed mills to import duty-free raw sugar until March and white sugar up to November to ensure domestic supply during the AugustOctober festive season, when demand rises for sweets.
"I personally think 200,000 tonnes of sugar from Thailand will reach India before the New Year," said Kun Chalermkiatkul, international marketing manager at Mitr Phol Sugar,the country's biggest miller.
India is filling the supply gap with imports after poor monsoon rains cut domestic output. It was estimated to have imported 215,000 tonnes of white sugar from various sources,with around 30% coming from Thailand, said Mr Kun.
Demand from India has been a big factor in the rise of global sugar prices to a 28-year high in recent weeks.
India has allowed mills to import duty-free raw sugar until March and white sugar up to November to ensure domestic supply during the AugustOctober festive season, when demand rises for sweets.
"I personally think 200,000 tonnes of sugar from Thailand will reach India before the New Year," said Kun Chalermkiatkul, international marketing manager at Mitr Phol Sugar,the country's biggest miller.
India is filling the supply gap with imports after poor monsoon rains cut domestic output. It was estimated to have imported 215,000 tonnes of white sugar from various sources,with around 30% coming from Thailand, said Mr Kun.
Demand from India has been a big factor in the rise of global sugar prices to a 28-year high in recent weeks.
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