THAILAND

 

Thailandis the largest exporter of rice and the fourth largest exporter of sugar in theworld. It has support programs for rice, sugarcane, and corn to stabilizedomestic prices. 

 

Corn

        The government utilizesa mortgage program for corn to stabilize domestic prices.  Farmers obtain a loan by mortgaging thecorn.  For 2005/06 loan rates wereset at 4.75 baht/kg on farm ($3.02/bu).

        Thailand uses a TRQ forcorn imports.  The import quota in2006 was 54,700 MT at 20% in-quota tariff and imports beyond the quota amountare faced with a 73% tariff and a surcharge of 180 baht/MT ($0.13/bu).

 

Rice

        The rice interventionpolicy is implemented through a mortgage program. Farmers obtain a loan bymortgaging the paddy. Farmers may redeem the loan within 4 months of harvest(loan rate is 3%, below the 6% market rate). The government is liable for loansnot redeemed.  In addition, monthlywarehouse rental is paid to farmers.

        Intervention price in2005/06 was 9700-10,000 baht/MT ($12.24-12.62/cwt) for fragrant paddyrice.  Intervention prices arebased on three year average market prices.

        Millers are required tobuy rice from the market at no less than half of the total mortgaged price. Thegovernment pays storage and quality control costs to millers after 90 days.Millers are responsible for rice quality until the rice is milled.

 

Soybeans

        Soybean growers receiveno production support from the government but processors are required topurchase soybeans at minimum prices. Food processors must buy domestic Grade 1 soybeans for no less than 14baht/kg ($10.49/bu) at the factory or 13 baht/kg ($9.75/bu) at the farm.  Feed manufacturers must buy Grade 2soybeans for no less than 12 baht/kg ($9/bu) at the factory or 11 baht/kg($8.25/bu) at the farm.  Crushersare required to buy domestic Grade 3 soybeans for no less than 11.50 baht/kg($8.62/bu) at the factory or 10.50 baht/kg ($7.87) at the farm.

        Import controls havebeen the primary means by which domestic prices are supported.  Eligible importers must make purchasesfrom domestic producers at announced prices.  

        Thailand has a TRQ forsoybeans with an in-quota tariff rate of 20% and an out-of-quota rate of80%.  However, imports from WTOcountry members are currently unlimited with a 0% import duty. 

        Imports from non-WTOmember countries must be approved on a case by case basis by the Ministry ofCommerce.  The current import dutyis 6%.  Imports from Cambodia,Burma, and Laos are subject to 0% tariff under the Ayeyarwaddy-ChaoPhaya-Mekong Economic Cooperation Strategy. 

 

Sugar

        The governmentmaintains minimum prices for sugarcane (800 baht/MT or about $0.08/lb raw sugarequivalent).

        The government controlssugar prices in the domestic market and regulates sugar sales by millers in thedomestic market.

        Sugarcane has a 65%tariff rate under the quota of 13,760 MT and an out-of-quota tariff of 94%.

 

Wheat

        Wheat production isinsignificant.

        The tariff rate onimported wheat is 0.1 baht/kg (roughly $0.07/bu) and the tariff rate on wheatflour is 5%.