Thailand agrees to import Lao maize
Thailand agrees to import Lao maize
Maize growers in Laos shouldn't worry about market demand as Thailand will no longer close down its market to the Lao products.
Thai Minister of Commerce, Mr Boonsong Teriyaphirom told his Lao counterpart, Dr Nam Vinhaket this week that Thailand would purchase the maize at market prices through the Public Warehouse Organisation if it was of suitable quality.
The Thai minister held bilateral talks with the Lao Minister of Industry and Commerce, Dr Nam on Wednesday on the sidelines of the Asean Economic Ministers' Meeting (AEM) in Siem Riep, Cambodia, according to Thai newspaper, The Nation.
During the meeting, Dr Nam proposed that his Thai counterpart not close down its market for Lao maize as Thailand has done in the past. A number of maize growers in Laos, particularly in Xayaboury province, were unable to sell their products after Thailand banned the imports of maize in an effort to protect domestic maize growers.
Lao farmers do not have maize drying facilities therefore they need to export the crops to Thailand immediately after harvest. A number of Thai businesses also provided funds and technical support to Lao maize growers under contact farming arrangements therefore there should be no reason for Thailand to close down its market for the Lao products.
Mr Boonsong said that the Lao maize would be distributed to farmers as feed for hogs and hens, and to agricultural cooperatives, clubs and related associations. This would help them reduce feed-meal costs and ultimately bring down retail prices.
During the bilateral talks, the Thai minister also asked his Lao counterpart to support Thai government policy to establish a regional rice exporting federation, aiming to increase bargaining power and protect the benefits of rice growers in the region.
The cooperative plan, which is in the draft phase, will be announced during the Asean Summit in Phnom Penh in November.
According to The Nation, Laos is the latest rice producer to agree to join the cooperative, along with Thailand, Cambodia, Myanmar and Vietnam. It is believed that successful cooperation will strengthen the Asean region's competitiveness in the rice market.
During the AEM, ministers pointed out that the process towards the single Asean market by 2015 is behind schedule. Overall, Asean is about 72 percent prepared for market liberalisation, while Thailand has achieved nearly 80 percent of the targets.
Issues delaying the process include cross-border trade facilitation, cooperation on establishing common standards for goods, liberalisation of services, and the setting up of a body to monitor the elimination of non-tariff measures, as well as the establishment of an “Asean single window” to smooth the operations of the private sector.
The Lao Ministry of Foreign Affairs issued a media release this week, urging Lao officials and the private sector to prepare for the Asean Economic Community, which will be established in 2015.
According to a survey, most Lao firms are not aware of the regional integration process which will happen over the next two years.
vientiane times
