Fertiliser prices to fall by 5-15%

Fertiliser prices to fall by 5-15%

The government yesterday succeeded in lobbying chemical fertiliser traders to cut the price of fertilisers by 5-15%, effective immediately, to help farmers hard hit by the widespread drought and about to start their production.

According to Wiboonlasana Ruamraksa, director-general of the Internal Trade Department, the cut will apply to fertilisers in various formulas used for rice, rubber, corn, oil palm and cassava cultivation.

The price cut is the third in two years after the department succeeded in convincing chemical fertiliser suppliers to cut the prices of their products in April and December last year to comply with falling oil prices.

Rice farmers will start production in June.

Plengsak Prakadphesaj, president of the Thai Fertilizer and Agricultural Supplies Association, said suppliers are ready to cooperate with the government's request and understand the predicament of drought-afflicted farmers.

Mr Plengsak said the drought was also expected to sharply cut domestic demand for chemical fertiliser by 30% this year to 4.5 million tonnes from 5.3 million in 2015. Sales were estimated at only 55 billion baht this year compared to 70 billion in 2015.

He added demand fell in line with the fall of global fertiliser prices caused by declining oil prices.

However, fertilisers are among the farm-related products on the government's price control list of 41 items.

Businesses making or selling products on the list are required to inform the authorities of their production costs and seek approval before any price increase.

The price control list covers mainly essential items for daily use such as food, consumer products, farm-related products (fertilisers, pesticides, animal feed, tractors, rice harvesters), construction materials, paper, petroleum and medicines.

Listed foods include garlic, paddy, milled rice, corn, eggs, cassava, wheat flour, yoghurt, powdered/fresh milk, sugar, vegetable/animal oils and pork.

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