ESCAP, Myanmar development partnership seeks to boost agricultural sector and enhance rural livelihoods

Nobel laureate Stiglitz leads expert discussions on restoring country as rice bowl of Asia


The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Government of the Union of Myanmar today held a wide-ranging dialogue aimed at boosting the countrys agricultural sector and to help it reclaim its status as the rice bowl of Asia.

At the invitation of ESCAP, Nobel Prize-winning economist Prof. Joseph Stiglitz and other eminent experts discussed strategies for Myanmar to cut poverty in light of Asias regional and subregional experiences.

It is my hope these ideas and analysis will open a new space for policy discussion and a further deepening of our development partnership, UN Under-Secretary-General and ESCAP Executive Secretary Noeleen Heyzer said at the event held in Myanmars capital, Naypyitaw.

These development objectives can only be achieved through the successful engagement of local experts and people who know what is happening on the ground. This development partnership, requested by the Government of Myanmar, provides a unique platform for eminent international scholars and local researchers to exchange experiences and ideas with government agencies and civil society, Dr. Heyzer added.

This is the second in a series of events launched by Dr. Heyzer during her visit in July to Myanmar, and was organized by ESCAP with the countrys Ministry of Agriculture and Irrigation and Ministry of National Planning and Economic Development.

In his presentation, Towards a more productive agrarian economy for Myanmar, Professor Stiglitz noted that Myanmar was well-positioned to learn from other countries in the region that have developed on the back of gains in agriculture. There are large opportunities for improvement. Myanmar should take a comprehensive approach, he said.

He urged the Government of Myanmar to: promote access to appropriate agricultural financing; take measures to boost access to seeds and fertilizers; dramatically boost spending on health and education; and create well-paid jobs in construction of rural infrastructure in order to stimulate development and raise incomes and spending.

Professor Stiglitz also noted that well-functioning institutions were critical to success, and that Myanmar could learn from the mistakes made by other resource-rich countries. Revenues from oil and gas can open up a new era, if used well. If not, then valuable opportunities will be squandered, he said.

Economics and politics can not be separated, Professor Stiglitz added. For Myanmar to take a role on the world stage and to achieve true stability and security there must be widespread participation and inclusive processes. This is the only way forward for Myanmar.

Maj. Gen. U Htay Oo, Minister of Agriculture and Irrigation of Myanmar, noted that climate change has had significant effects on the countrys agriculture and livelihood, particularly in the dry zone. To mitigate such pressure we are implementing short-term and longer term measures, such as promoting access to irrigation water to increase productivity, and developing resource-based as well as knowledge-based sustainable agriculture and livelihoods built on existing infrastructures, he said.

We are adopting a holistic approach informed by the human development perspective to address the needs of the most vulnerable, he added. We cannot afford to be complacent thus the tasks for agriculture and rural development must be implemented through mass movement.

The Minister also welcomed and supported the continued close cooperation and collaboration of ESCAP in the development partnership series. I look forward to the joint activities to come in 2010, in particular the regional development programme for sustainable agriculture towards inclusive rural economy development, he said.

Col. Thurin Zaw, Deputy Minister of National Planning and Economic Development, delivered a presentation on Myanmars National development plans and the implementation of the Millennium Development Goals (MDGs).

The meeting was organized into two segments: The morning roundtable was devoted to expert discussions and included presentations on Recent socio-economic development, by Daw Khin Ma Ma Swe of the Ministry of National Planning and Economic Development, and on Approaches for agriculture and rural development, by Daw Dolly Kyaw of the Ministry of Agriculture and Irrigation.

There were also presentations on Establishing the virtuous cycle of food security, sustainable agriculture and rural economy development, by U Tin Htut Oo and U Tin Maung Shwe of the Academy of Agriculture, Forestry, Livestock and Fisheries Sciences, and on Enhancing Myanmars rural economy, by Ikuko Okamoto of the Institute of Developing Economies-JETRO.

The afternoon high-level development forum covered, Economic policies for growth and poverty reduction: lessons from the region and beyond.

On 21 December in Singapore, Professor Stiglitz and Dr Heyzer will hold a press conference about the forum at the Singapore Foreign Correspondents Association. The press conference will take place at the Singapore Management University, Administration Building, from 9am-10am.

‘Roses of the North’ Charity Exhibition

Flowers can make everyone feel happy…. H.E.Privy Councillor Palakorn Suwanrath and Thanpuying Dhasaniya Suwanrath recently presided over at ‘Roses of the North’ charity oil painting exhibition inspired by Bhubing Palace organized by L’Occitane and Baan Saen Doi Resort in Chiang Mai. The art of mercy rose oil painting exhibition was held at Peninsula Plaza and part of sales went to support schools and hospitals where are needed in Chiang Mai. Many kind hearted celebrities attended the event including Khunying Dhipavadee Meksawan, Mr.Harald Link, Arunee Bhirombhakdi, Atchara Tejapaibul, M.L.Sirichalerm Svasti, M.L.Thongmakut and Jarujit Thongyai, Yuwadee and Nidsinee Chirathivat, Dararatana and Toey Mahadumrongkul, Chadapah Snidvongs, Captain Deuntemduang Na Chiengmai, Pimpawan Limpichart, Joy Sopitpongstorn, Panitnuj Bunnag, Piranuj T.Suwan, Sodsoi Chomthavat, Mayura Savetsila, Wanchana Sawasdee and more.

The exhibition showcased of over 70 oil painting of roses flowers by artist and art lecturer Narin Phothisombat. Narin Phothisombat is a talented artist with an art degree from Chiang Mai Technology Rajchamonkol. His painting was inspired by roses from Phra Tamnak Bhubing Rajanives (Bhubing Palace). His painting reflected his pride and passions towards the beauty of nature for roses including Queen Sirikit, Eliza, Rouge Meilland, Queen Elizabeth and Royal Air Force.

In addition there was the charity auction on 2 oil painting pieces. The first one was the painting of Queen Elizabeth which won by Harald Link, CEO of B.Grimm for 120,000 Baht and the other piece on Queen Sirikit won by Arunee Bhirombhakdi for 75,000 Baht.

ETIHAD TO JOIN SUSTAINABLE AVIATION FUEL USERS GROUP

Etihad Airways has joined the Sustainable Aviation Fuel Users Group (SAFUG), an airline-led industry working group established in 2008 to accelerate the commercialisation and availability of sustainable biofuels.


James Hogan, Etihad Airways’ chief executive, said: ““Etihad recognises the need for step-changes in aviation to reduce our reliance on fossil fuels and meet our industry’s carbon reduction goal. We also recognise that any fuel alternatives must be morally, socially and environmentally acceptable, while not compromising the future sustainability of the aviation industry.”

SAFUG members are bound by stringent criteria for the development of non fossil fuels, including the following:

The development of plant sources must be undertaken in a manner that is non-competitive with food, with biodiversity impacts minimised and without jeopardizing drinking water supplies. The total lifecycle greenhouse gas emissions from plant growth, harvesting, processing and end-use should be significantly less than that from fossil sources. In developing economies, development projects should include provisions or outcomes that improve socio-economic conditions for small-scale farmers and their families and that do not require the involuntary displacement of local populations. High conservation value areas and native eco-systems should not be cleared and converted for jet fuel plant source development.

Each SAFUG member has pledged to work through the Roundtable for Sustainable Biofuels (RSB), a global multi-stakeholder initiative consisting of leading environmental organizations, financiers, biofuel developers, biofuel-interested petroleum companies, the transportation sector, developing-world poverty alleviation associations, research entities, and governments.

“Abu Dhabi, our home base, has itself made a strong commitment towards sustainability and in the promotion of renewable energy through the establishment of Masdar City, which will the headquarters of the International Renewable Energy Agency,” Mr Hogan said.
About Etihad Airways

Etihad Airways is the national airline of the United Arab Emirates based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights to over 55 destinations in the Middle East, Europe, North America, Africa and Asia.

Food & Fun at USA Fair 2009-Clean & Green

The American Chamber of Commerce in Thailand (AMCHAM) joins hands with The U.S. Embassy to present USA Fair 2009-Clean & Green, where top American brands will be displaying and selling their products and services. The annual event, under the theme “Clean & Green”, will be held on 19-22 November 2009 at Royal Paragon Hall on the 5th floor of Siam Paragon Shopping Complex. Well-known model Sirinya Bishop will also attend the event as the fair’s Ambassador for this year, accompanied by the event’s mascot, Mr. Clean & Green Fair Bear.


To celebrate the success of eco-friendly businesses, AMCHAM in association with Amway (Thailand) Limited, American International Assurance Company, Limited – Thailand (AIA Thailand), Coca-Cola (Thailand) Limited, Dow Chemical Thailand Limited, and Ford Sales & Service (Thailand) Co., Ltd. will hold the USA Fair 2009-Clean & Green. Participants will learn about climate control policy as introduced by US president Barack Obama, and many other interesting ‘Clean & Green’ ideas such as an organic farm practicing natural way to control pests and diseases, the process of clean and green chemistry, activities about science and education, green car with a class-leading fuel-efficient technologies, and other environmentally-friendly projects.

Mr. David Carden, AMCHAM President said “This year, we are excited to pursue under the Obama Administration, the U.S. policies energy and environment to advance energy and climate securities to promote economic recovery efforts, accelerate job creation, and drive clean energy manufacturing.”

Mr. Preecha Prakobkit, Managing Director of Amway (Thailand) Limited said “Amway has been an AMCHAM member for 22 years and has been supporting the USA Fair for 4 years in a row. Amway realizes that the fair always offers quality products and activities which benefits both people and society. This idea is really compatible with the policy of Amway, especially the theme of the fair this year ‘Clean and Green’ which helps promote the environmental friendly and corporate social responsibility projects to which Amway also commits. Amway would like to take this great opportunity to present our organic farm practicing natural way to control pests and diseases, no-animal tested products, recycle packages which are all environmental-friendly and consumer-oriented at the same time. Please come and visit us at our organic farm model where visitors could learn about sustainability and environmental friendly farming methods with a lot of souvenirs to giveaway and interesting activities for you to join at Amway booth.”

Mr. Michael Parker, Chief Marketing Officer of American International Assurance Company, Limited – Thailand (AIA Thailand) said, “AIA Thailand has been operating life insurance business in Thailand for more than 70 years. We think of ourselves as innovators but in line with sustainability and longevity. One of AIA Thailand’s core policies is to instill a “Think Green” concept to our people both at work and at home. At work, we engage our people in energy saving and reducing the environmental impact of our business operations, particularly through reduced electricity and paper usage. Our “Operation Green” concept centers on targeting new ways that high technology can result in smarter and more efficient process. The adoption of Imaging and Workflow technology and e-Worksheet are examples of Operation Green projects which save time, office materials and energy.

AIA Thailand also organizes Green Activities by bringing AIA Smile Volunteers, our employee volunteer program, to be Green Ambassadors in reforestation projects. We also invite AIA staff to initiate Green Projects that can better the environment and address climate change through our Be Green with AIA project.”

Mr. Jorge Garduno, General Manager of Coca-Cola (Thailand) Limited said "Coca-Cola is delighted to once again sponsor the USA Fair in support of strong ties between the Kingdom of Thailand and the USA. We're particularly pleased to support the 'Clean and Green' theme of this year's Fair given its fit with our sustainability focus at Coca-Cola. From community water projects to multi-year recycling initiatives, we are committed to making a positive difference in the world by making sustainability part of everything we do."

Dr. Molly Peifang Zhang, Country Manager of Dow Chemical Thailand Limited added "Our 2015 sustainability goals focus on Sustainable Chemistry, Breakthroughs to World Challenges, Energy Efficiency, Addressing Climate Change, Contributing to Community Success, Product Safety Leadership, and Local Protection of Human Health and the Environment. Connecting chemistry and innovation with the principles of sustainability supports Dow's vision to be to be the largest, most profitable, most respected chemical company in the world. In our booth, we will show how clean and green chemical processes can be and how chemical products are essential to human progress. We will also have a science and education zone with activities and games about science."

Mr. Saroj Kiatfuengfoo, Senior Vice President, Ford Thailand said "Ford is committed to our global vision of sustainable mobility. This is being supported, in part, by Ford's innovative fuel-efficient technologies like our Powershift transmission technology that the Ford Focus TDCi Powershift is equipped with. The six-speed Powershift transmission and commonrail Duratorque engine combine to deliver unmatched fuel economy in its class at 17.8km/l. Additionally, the Focus TDCi Powershift is B5-capable"

Thai-American supermodel Sirinya Bishop has been chosen as this year’s event ambassador with a well-known history of charity work. She has taken part in the Friends of Habitat Build by Habitat for Humanity Thailand by helping to build shelters for those in need. This year, Sirinya will act as the event’s ambassador along side Mr. Clean & Green Fair Bear.

Come and experience the total American lifestyle and take part in a vast number of activities. Shop and enjoy American brand products, have fun with Cartoon Network Live! On Stage – Power of the Omnitrix, taste American food and beverages, and have a blast with your family at USA Fair 2009, held from 19-22 November, at Royal Paragon Hall 3, Siam Paragon Shopping Complex.

Cabinet wants second look at tapioca sale

       The cabinet has declined to approve a Commerce Ministry proposal to sell more tapioca in domestic and export markets.
       Prime Minister Abhisit Vejjajiva said the sale should be approved first by the Tapioca Committee chaired by Deputy Prime Minister Korbsak Sabhavasu and then proposed to the cabinet.
       The government still has 1.6 million tonnes of tapioca chips and 326,180 tonnes of starch that have been in its stockpiles for 10 months. Further delays would result in damage to the quality,the ministry has said.

"Golden year" for Thai rice exports

       Rice exports from Thailand may jump to a record next year on increasing demand from the Philippines, India and Indonesia, says an executive from the country's biggest exporter.
       "Unexpected import demand from India and Indonesia will drive the global rice trade higher," said Sarunyu Jeamsinkul, managing director of Asia Golden Rice Ltd. That will be on top of demand from the Philippines, which may need to import around 2.3 million to 3 million tonnes.
       "2010 will be a golden year for rice,"he said.
       Global production may decline after drought in India slashed monsoon output and storms in the Philippines destroyed at least 1 million tonnes of the crop.Rice, wheat and palm oil hit records last year, sparking concern among policy makers that there may be a food crisis as protests about high prices broke out across the globe.
       Strong demand in the global market would drive Thai exports to a record next year, said Rewat Yenchai, an analyst at Agrow Enterprise Ltd. in Bangkok.Thailand would benefit from a decline in global production.
       Prices may also return to record levels next year if the Thai government maintains its stockpile level, said Mr Sarunyu.
       "We may see rice climb above $1,000 a tonne," he said."There is a strong possibility we will see a rice crisis next year as India faces drought and Indonesia may feel the pinch of El Nino weather."
       Thai 100% grade-B white rice, the benchmark regional export price, was set at $541 a tonne last week. The price surged to a record $1,038 in May 2008.
       "Still, if the Thai government sells inventories under government-togovernment contracts at friendly prices,we could see the price in the range of $600 to $700," Mr Sarunyu said.
       Thai prices are unlikely to hit a record next year because of limited purchasing power and the high level of stockpiles held by the government, Mr Rewat said.
       Thailand's stockpiles at the end of the 2008-09 marketing year on Sept 30 were 3.12 million tonnes, according to US Department of Agriculture figures.Inventories would rise to 3.52 million tonnes next year, the USDA estimated.
       Thai rice exports would approach a record 10 million tonnes in 2010 on higher African demand and a lack of shipments from India, Chookiat Ophaswongse, the president of the Thai Rice Exporters Association, said last month.Production may climb to 35 million tonnes, from an earlier estimate of 32 million tonnes, he said last week
       The country's exports this year may total 8.3 million tonnes, lower than the association's target of 9 million, as Thai prices are less competitive than rivals and buyers built up stockpiles after prices jumped last year, Mr Sarunyu said.
       Asia Golden, which was set up in 1999 by a group of traders and millers, may export up to 1.6 million tonnes of rice next year, up 23% from a planned 1.3 million this year, he added.
       The Philippines held its first tender for 2010 supplies last week, a month earlier than usual, and is buying at least 850,000 tonnes of rice in two tenders this year. The country imported a record 2.4 million tonnes in 2008.
       India may buy as much as 3 million tonnes next year and become a net importer for the first time in 21 years. Indonesia, the world's third-largest producer, may shelve plans to export 2 million tonnes of milled rice next year if dry weather causes production to miss forecasts, the state food company Bulog said on Oct 6.

Tapioca sale re-negotiated

       The Commerce Ministry will ask for cabinet approval to sell 200,000 tonnes of tapioca starch to China in a governmentto-government deal at a re-negotiated price of 8,000 baht a tonne, says Commerce Minister Porntiva Nakasai.
       The ministry negotiated a higher price from the earlier agreed price of 7,950 baht a tonne. The cabinet blocked the initial deal because the government could get a better price by selling in the domestic market.
       "The Foreign Trade Department will propose details for the cabinet's consideration today," she said.
       "We didn't sell tapioca starch at prices below the minimum target because members of a sub-committee on the releasing of farm products set the selling price at 7,600 baht a tonne."
       Deputy Prime Minister Korbsak Sabhavasu had told the ministry to renegotiate with its Chinese counterparts,as the proposed price was lower than the 8,300 baht per tonne paid by Thai firms to buy government stocks.
       Mrs Porntiva said the selling price was not very high but was within the approved selling range of 7,600 to 8,100 baht a tonne. The Thai-Chinese deal will help strengthen bilateral relations and increase Thailand's share of the global tapioca starch market in the long term, she said.
       In the government's rice-supporting scheme, Ms Porntiva said 632 rice millers in 57 provinces had registered to act as buyers for paddy entering the government's option plan.
       About 60 millers in 20 provinces where the paddy harvest has begun are already active in the scheme.

India government to import rice

       India's government plans to import 30,000 tonnes of rice to offset an expected production shortfall following the worst monsoon in nearly four decades, a report said Saturday.
       The move comes as the US Department of Agriculture has forecast India's rice output will fall between 15 million and 17 million tonnes in the crop year from October 2009 to September 2010 following two years of bumper harvests.
       India is the world's second-largest rice producer. The country of nearly 1.2 billion people produced a record 99.15 million tonnes of rice last year.
       The government has asked three stateowned trading firms, MMTC, STC and PEC, to import 10,000 tonnes of rice each and sell it in the market, the Press Trust of India said.
       "The tender to import rice is under the government instruction," Sanjiv Batra, chairman of MMTC, told the news agency.
       An official of another publicly owned trading company STC said the rice shipments were likely to arrive in the country in November and December.
       As of now, the three state-run trading firms have been advised to import only 10,000 tonnes each, added the STC official, who was not identified.
       Earlier this week, the Press Trust of India reported private traders had already imported 400,000 tonnes of rice and the figure was expected to rise.
       Some experts have said India could buy up to three million tonnes of rice on world markets.
       The government has waived customs duty on rice imports of 70% until September 2010. The forecast rice shortfall comes after India's driest monsoon since 1972, which affected most of the ricesowing areas of the country and was followed by devastating floods.
       This year, the government says the rice-sowing area has fallen by six million hectares to 32.9 million hectares and the rice crop is expected to be reduced.
       Analysts say India could become a net purchaser of rice for the first time in two decades as a result of the bad weather. Rice prices in the domestic market have soared by 25% in the last four months on supply worries.
       India still has comfortable buffer stocks of 14.5 million tonnes, far above its buffer target of 5.2 million tonnes, according to local media reports.

JAPAN TO BE URGED TO EXPAND IMPORT QUOTA FOR THAI RICE

       The Commerce Ministry will urge Japan to enlarge its import quota for Thai rice, as part of the government's plan to boost new-harvest exports.
       Commerce Minister Porntiva Nakasai yesterday said she would talk to state agencies in Japan about extending the country's import quota.
       In addition, the government will offer to sell new-harvest rice to Japan as part of the ministry's plan to boost exports via government-to-government contracts.
       Porntiva will accompany Prime Minister Abhisit Vejjajiva on a visit to Japan next week in a bid to forge closer economic ties.
       "We hope Japan will consider importing three to four times more rice in the near future," she said, adding that the country currently imports mainly low-quality rice to supply its rice-product manufacturing sector.
       Porntiva said Thailand could export an overall 2 million tonnes from the new rice crop over the remainder of the year. Of the total, 1 million tonnes will be under government-to-government contracts.
       The ministry is planning to visit the Philippines to negotiate rice sales on a government-to-government basis.
       It also plans to increase rice exports via government-to-government contracts to between 2 million and 3 million tonnes next year.
       "Importing countries are placing orders to build up their stocks. Thai exporters also forecast rice prices will increase beyond the level during the food crisis of last year," the minister said, adding that jasmine rice would exceed Bt30,000 per tonne.
       The higher-price trend derives from major importing countries having faced natural disasters that direct affected their rice production.
       Yanyong Phuangrach, permanent secretary of the ministry, said the reference paddy rice for November 1-15 had been fixed.
       Jasmine rice is quoted Bt14,840 per tonne, with the price gap to compensate farmers under the government's income-guarantee project at Bt460 per tonne.
       Bt8,389 is quoted for white rice, Bt9,175 for Pathum Thani rice and Bt7,680 for sticky rice.

Rice trading schemes pushed forward

       The government is preparing to buy paddy from farmers starting early next month and will accelerate sales from its huge rice stocks through governmentto-government contracts to stabilise prices, according to Commerce Minister Porntiva Nakasai.
       She said the ministry would start buying paddy for the 2009-10 main crop from Nov 2, initially in Phitsanulok,Kamphaeng Phet and Nonthaburi, using 20 billion baht from the Thai Khem Kaeng economic stimulus budget.Buying prices would be based on the government's reference prices set at 8,460 baht per tonne for paddy with 15% moisture.
       In light of heavy rains during the last several weeks, local paddy prices have fallen to between 6,000 and 6,500 baht for paddy with moisture exceeding 30%.
       However, exporters said the overall Thai rice prices were not all that bad,with the benchmark Thai white rice now around 14,800 baht per tonne freeon-board, or about 8,400 to 8,500 baht per tonne for paddy of 15% moisture.
       According to Mrs Porntiva, the government plans to sell 950,000 tonnes of rice from its stocks through governmentto-government deals in the remaining two months of this year and would release another 1.77 million tonnes in 2010."Our strategy is to drain rice out of the country in a bid to lift domestic prices during the harvesting season,"she said.
       The government is estimated to have the equivalent of six million tonnes of milled rice, bought from farmers in previous price intervention schemes."We plan to negotiate with several countries,including the Philippines, Malaysia, Indonesia and Iran," said Mrs Porntiva.
       On Monday, the Philippines said it was in talks to buy at least 250,000 tonnes of rice from Thailand in a governmentto-government deal.
       Thailand was expected to produce around 23.5 million tonnes of rice from its main crop.
       The government had planned to end its rice-buying intervention in favour of a scheme under which it would subsidise farmers without buying grain itself.However, it has been forced to run both schemes in parallel in the face of farmers'protests.
       Mrs Porntiva said to lift rice exports next year, the government planned closer partnerships with private exporters to negotiate with potential buyers including Nigeria, Angola, Libya and Algeria. As of Oct 26, Thailand had exported 7.065 million tonnes of rice worth $4.06 billion. Volume was down 20.7%with value dropping 25.9% from the same period last year.

Sugar sale pending

       Thai Cane and Sugar Corp will sell 120,000 tonnes of raw sugar tomorrow. The amount includes 60,000 tonnes for delivery between March and May 15,2011 and the same volume for shipment between May and July 15,2011, according to Surat Thadachawasakul,general manager of the state-owned company.
       The company each year offers 400,000 tonnes of so-called quota-B sugar for sale to trading firms under long-term contracts. The auction tomorrow will be the first tender round of the 2010-11 crushing season.
       Raw sugar for March delivery was trading on Monday at 21.63 cents a pound in New York, down from a 28-year high of 25.43 cents on Sept 30.

INEFFICIENCY THREATENS THAI FARM PRODUCTS UNDER AFTA

       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.

Food security is first priority

       Statistics released by the United Nations Food and Agriculture Organisation (FAO) in a new report said that worldwide a record one billion people are now going hungry. According to the UN food agency,30 countries now require emergency aid, including 20 in Africa.
       Jacques Diouf, director-general of the FAO, said:"In the fight against hunger the focus should be on increasing food production. It's common sense ... that agriculture would be given the priority, but the opposite has happened." Mr Diouf was speaking of the situation in countries which have been hard hit by food shortages, where the trend since the mid-1980s has been reduced foreign aid and private investments earmarked for agriculture.But his words deserve attention even in countries where food security is taken for granted, like Thailand. We should not forget how important a thriving agricultural sector is to the well-being of the country, more so even than a thriving property sector, whose problems get much more newsprint.
       To maintain a thriving agricultural sector it is necessary to assure farmers they will be able to get a fair and sufficient price for their produce. Toward that end it is encouraging that Deputy Prime Minister Korbsak Sabhavasu pledged last week to quickly finish work he has begun in the agricultural sector before he is transferred to a new post in the PM's Office. This work includes guidelines for crop insurance and other supplementary measures to help shore up crop prices in case market prices fall.
       Mr Korbsak said the supplementary measures might include traditional price intervention or a pledging scheme for particular areas or provinces.This is a good start, but unlike in the past, these schemes must be kept totally transparent.
       Another area that needs careful attention is how to protect farmers from the adverse effects of trade liberalisation, such as that which will take effect among Asean member countries on Jan 1,2010.
       Many farmers are barely getting by as it is and the nation cannot afford to leave them to the mercy of market mechanisms.

SMALL FARMERS URGED TO AVOID TAKING BIG RISKS

       Tongchai Kongkalai is training farmers at his Nakhon Nayok learning centre about the need to adopt self-sufficiency principles set down by His Majesty the King.
       "During this time of great economic crisis, we need to learn from past mistakes. The most dangerous thing farmers can do is go deep into debt."
       "No one told me about such troubles. But I had followed the advice given by big firms telling me to over invested on a single cash crop."
       "That's set me back by more than Bt10 million," he says. Even after paying off monthly to the banks the past five years, Im still in debt?"
       "No one tells you to start small or adopt measures to safeguard land," he says. "When a farmer loses his land, he loses everything, which is what many corporations want."
       The proverb: To enslave people, one must first make them dependent,- rings true in the marketplace where monopoly is the end game for many big organisations.
       "I tell farmers to be wary of corporations and government agencies that unwittingly act on their behest."
       At times Tongchai seems to be mouthing ideas that belong to the far left, one observer at the centre notes.
       "But he's just endoring what many Western scientists are now openly advocating in public," he adds.
       From the terrible mistakes of focusing on just one type of potato crop, farmers were reduced to being pawns of a large supply chain.
       The scheme puts them at the mercy of pesticide producers to combat the diseases that befall these selected crops.
       If they had diversified and planted other potato species, the BBC says recently in a documentary, farmers could have better endured such a crisis.
       Corporations such as Monsanto had shown in past years that its genetically modified rice is aimed at helping themselves first.
       Where Indian rice planters reacted angrily to a ploy that would make them forever dependant on the rice seeds that do not replicate, the danger of overly trusting big business becomes abundantly clear.
       Moral and ethical issues are at the core of Tongchai's approach.
       "Wise farmers would do well to avoid using methods recommended by big suppliers such as investing too much in buying land.
       The more one grows, the more chemicals and fertilisers these suppliers can sell, he says.
       This cycle of induced poverty has been repeated the past many decades, he says. "It's time to stop listening to them and start thinking for ourselves."
       The more economical way to farm is to grow the most natural crops such as rice and fruits.
       "Local crops do not carry the tariffs imposed on foreign imports."
       "The key is to diversify, grow many items and weather periods of poor prices for certain goods.
       "Just one rai of farm land is sufficient to start with.
       "Farmers need not borrow so much money. They should only expand after their icomes grow.
       "My troubles started when I took out a loan for Bt10 million.
       "If someone had told me about the risks, I would have started small and be a rich man today.
       "In rhe first two years, my income was quite good. In the third year, prices collapsed."
       "I now tell others not to be so follish. Also they should raise domestic species and not imported types.
       "Imported hogs need air-conditioning," he explains.
       "The cost of the air conditioners as well as 24-hour electricity charges will put many in the poor house," he warns.
       Tongchai is taking part in a government plan to assist poor farmers using the self-sufficiency programme.
       The scheme aims to help 80,000 communities.
       So far 20,000 applications have qualified for funding.
       Each will receive several hundred thousand baht, depending on their respective scale.
       The scheme has a budget for Bt20-billion.

Farmers watch talks closely

       Leaders of the Assembly of the Poor say they will rally their members and set up camp in Bangkok to press their demands if nothing comes of planned talks with the government.
       Prime Minister Abhisit Vejjajiva has promised to renew talks aimed at solving members of the assembly's problems within the next two weeks.
       Mr Abhisit made the promise on Saturday at the assembly's northeastern headquarters in Phibun Mangsahan district here, where he handed over a cheque for 1.2 million baht to Hai Khanjantha.
       Mrs Hai, an assembly member, fought for 32 years for compensation for her land submerged as part of the Huay La Ha reservoir at tambon Na Tan.
       Land issues make up the bulk of the assembly's demands: rights for landless farmers, security for the poor being forced from their traditional forest homes and compensation for those affected by major government projects.
       "If there is no progress at the talks,we will move from here to set up makeshift tents at Government House to pressure the government to pay serious attention to our problems," said Somkiat Phonphai, a founding member of the assembly.
       The group will discuss the planned demonstration tomorrow.
       Mr Somkiat said the protest was probably "the only way out" to make the government pay attention to villagers'problems and put them in the public spotlight.
       He said each village had its own budget to support the rally and the assembly would also receive donations from supporters. The demonstration would not involve politics, he said.
       Another Assembly of the Poor leader,Paijit Sirarak, said the group had been calling for justice from successive governments since 1996.
       Many problems that should have been solved have been ignored, such as helping those affected by the Pak Moon dam in Khong Chiam district in Ubon Ratchathani.
       "The Democrat-led government should no longer leave other problems unresolved," Mr Paijit said.
       "The case of Grandma Hai is just one problem among many which the government has yet to address."
       Assembly members are worried about the prime minister's sincerity and seriousness in solving their problems.
       "After the prime minister left, we thought very hard about it because we're afraid that we will be used as a political tool of politicians to seek votes," said Boonmee Khamruang, a member of the assembly.

GOVT TO RENEW TALKS WITH ASSEMBLY OF POOR, PM VOWS

       Prime Minister Abhisit Vejjajiva will renew talks with the Assembly of the Poor in the next two weeks to solve their problems, he said yesterday.
       Members of the assembly met the prime minister at a learning centre in Phibun Mangsahan district, also the assembly's headquarters in the Northeast. He handed over a 1.2 million baht cheque to farmer Grandma Hai Khanjantha for the loss of opportunity she suffered over 32 years, after her land was submerged by the Huay La Ha reservoir, built as part of a new dam.
       "I will hold talks with you [the Assembly of the Poor] in the next two weeks.
       PM's Office Minister Sathit Wongnongtoey accompanied the prime minister to the province.
       Mr Abhisit said he had asked Mr Sathit to oversee the assembly's problems.
       The government was drafting a regulation on community land title deeds,allowing communal use of state land,he said.
       To solve the plight of farmers generally, the government and assembly met for talks three times in June and July.
       "The government has succeeded in solving only the case of Grandma Hai.Other problems have yet to be solved,"said Sawat Uppahat, a member of the assembly.
       The problems include a drastic drop in the number of fish in the Moon River caused by construction of the Pak Moon Dam in Khong Chiam district,and land disputes between villagers and state agencies. Sompong Viengchan, a villager hit by construction of the dam, said the government should order the Electricity Generating Authority of Thailand to open the dam's sluice gates permanently to let fish from the Mekong River come in.
       At the moment it opens four months a year.
       "We want our lives back. The dam has ruined our livelihoods for over a decade," said Mrs Sompong.
       Farmers wanted the government to provide 15 rai of land for each family and grant them compensation.
       Thongcharoen Srihatham, another member of the assembly, warned the prime minister not to use the people's problems as a political tool to seek votes. Shortly after the prime minister left, about 1,000 red shirt protesters rallied at the centre. They swore, burned a coffin, and threw a bag of fermented fish at his poster.

Farmers claim rice seeds adulterated

       Farmers in the Northeast are claiming they have been supplied with substandard Hom Mali rice seeds by the Agriculture Ministry, the opposition Puea Thai Party says.
       Anudit Nakorntap, a Puea Thai MP for Bangkok, yesterday said the party's anti-corruption team had received complaints from farmers in northeastern provinces claiming they had been given Hom Mali rice seeds adulterated with lower-quality rice seeds.
       Mr Anudit said the seeds were distributed as part of the ministry's toxicfree Hom Mali rice production promotion scheme.
       Fifty-thousand sacks of Hom Mali rice seeds weighing 1,250 tonnes had been supplied to farmers this year and grown on about 300,000 rai, he said.
       The seeds were handed out in April to farmers, mainly in Yasothon and Udon Thani, by government coalition MPs.
       They planted the rice but found about half their crops produced grains early,Mr Anudit said.
       The early grain production yielded low quality rice and the farmers could not harvest it because not all their rice was producing grains at the same time.
       Agriculture and Cooperatives Minister Theera Wongsamut said the rice scheme had been proposed and implemented by former Yasothon governor Khachornsak Singhatokul, not by the ministry.
       The provincial administration office handled the rice seeds purchase worth 26 million baht. He had asked the Rice Department to look into the opposition's claims.
       DNA testing could prove whether the rice seeds were genuine, he said.
       Prasert Gosalvitra, the Rice Department director-general, said he would order the Bureau of Rice Seeds to investigate.

BIDDING TO OPEN FOR WHITE RICE

       The Commerce Ministry would soon open bidding for white rice to relieve rising pressure on rice prices and free up warehouse space for the upcoming harvest.
       "The ministry will soon call for a meeting with agencies, including the Foreign Trade Department and the Public Warehouse Organisation, to fix the volume and time for the new tender," Commerce Minister Porntiva Nakasai said yesterday.
       The government's National Rice Policy Committee recently agreed that it was time to release rice stocks to the market, she said.
       The government has about 6 million tonnes of the grain in its inventory, which it tried twice to sell to the market, but the bids were too low.
       Paddy rice will not be made available, even though exporters have been clamouring for a supply of unhusked rice, as the procedures for releasing paddy rice is more complicated than for polished rice, she added.
       Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said the government must consider disposing of its huge rice stocks, to address the shortage in the domestic and export markets.
       "Releasing stocks to rice exporters and domestic packers via bidding would be an efficient way of easing rising prices, particularly domestic prices," he said. The rice should be released in small lots to prevent the rice price from dropping, he said.
       Consumers have been forced to shoulder higher retail rice prices because domestic traders and exporters have had to compete to purchase rice from the market.
       In the past week, the domestic price for 5-per-cent white rice jumped from Bt1,500 to Bt1,600 per 100-kilogram sack.
       Yangyong Phuangrach, director-general of the Internal Trade Department, said his department will soon call an urgent meeting with millers, exporters and agencies to prepare for the kick-off of the rice guarantee project next month.
       The department will also discuss issues relating to rice liberalisation under the Asean Free Trade Area.

       "Consumers have been forced to shoulder higher retail rice prices because domestic traders and exporters have had to compete to purchase rice"

Newin among 44 cleared in graft case

       The Supreme Court has acquitted political playmaker Newin Chidchob and 43 others of corruption and malfeasance charges in a 1.44-billion baht rubber sapling procurement deal.
       The court also cleared the 44 defendants of the 1.3 billion baht compensation for alleged damage to the state from the projects claimed by the plaintiff, the National Anti-Corruption Commission (NACC) on behalf of the 2006 coup-appointed Assets Scrutiny Committee (ASC).
       The case, investigated by the ASC,mainly centred on unlawful approvals for the use of state funds and collusion among bidders.
       The project was initiated in 2003 by Mr Newin, then deputy agriculture and cooperatives minister under the Thaksin Shinawatra government, and Chakan Saengraksawong, then director-general of Department of Agriculture (DOA).
       The court's Criminal Division for Holders of Political Positions cleared Mr Newin with 8:1 votes and Mr Chakan with 7:2 votes of wrongdoing for proposing a new line of financial sourcing by allocating funds from the Farmers Aid Fund to purchase 90 million rubber saplings for farmers in 36 northeastern and northern provinces.
       "They only followed the then government's policy to improve infrastructure in the agriculture sector," one of the nine judges said.
       Mr Newin appeared relieved after the two and a half hour reading of the verdicts, rushing to hug other former ministers.
       The Buri Ram politician told reporters that he believed the disputed project would eventually bring about profits to farmers engaging in it over the next two years.
       "I have only one thing left to do that is to do every thing to protect the monarchy," said a tearful Mr Newin.
       Key Bhumjaithai politicians including Interior Minister Chavarat Charnvirakul and Deputy Interior Minister Boonjong Wongtrairat attended the hearing.
       Banned politician Sora-at Klinprathum, under the Bhumjaithai wing,is among other four former ministers and state officials cleared of wrongdoing. In their capacity as panel members of the Farmers Aid Fund, they approved the fund's budget allocation.
       The ASC charged that rubber plants did not qualify for the Farmers Aid Fund's funding, but the court found otherwise.
       Other former cabinet members cleared of all charges include former deputy prime minister Somkid Jatusripitak, former deputy finance minister Varathep Ratanakorn, and former commerce minister Adisai Bodharamik.
       Mr Adisai, who did not show up during the first scheduled hearing on Aug 17 and forced the court to postpone it, failed to attend the session. He earlier told the court he was receiving medical treatment in the United States.
       After the ruling, the court also revoked an arrest warrant earlier issued to Mr Adisai for his absence.
       The court also acquitted state officials and three sapling supplier companies of criminal charges involving collusion in the bidding.
       Using criminal offences, the ASC accused the 44 defendants of malfeasance and causing damage to the state in connection with the project.
       The Office of the Attorney-General did not accept the panel's case submitted by the ASC, saying it was "incomplete". But the ASC insisted on going ahead with it.
       ASC member Kaewsun Atibhodhi said he accepted the ruling of the Supreme Court and believed in the politics-free trial and all the nine senior judges handling the case.
       Mr Kaewsun said the ASC had not tried to unfairly treat any defendants in the case but had taken action in line with the evidence.
       "I don't think there will be a counter lawsuit from any acquitted defendant.The court acquitted them because of different legal viewpoints," he said.
       Prompong Nopparit, spokesman for the Puea Thai Party, said the court's ruling judged the ASC's credibility.

       THE VERDICT
       DEFENDANTS: Former deputy agriculture and cooperativers minister Newin Chidchob and former department of agriculture chief Chakan Saengraksawong.
       CHARGES: Violations of laws and regulations for initiating the sapling project and for proposing that financing be allocated from the Farmers Aid Fund (FAF) and repayments be made by the Rubber Replanting Aid Fund (RRAF).
       VERDICT: Not guilty. The defendants acted in line with government policy.
       ..............................................................................................
       DEFENDANTS: 17 members of the FAF comprising state officials and four ministers-former deputy prime minister Somkid Jatusripitak, former agriculture and cooperatives minister Sora-at Klinprathum, former commerce minister Adisai Bodharamik and former deputy finance minister Varathep Rattanakorn
       CHARGES: Unlawful approval of the use of the FAF's budget for investment and the RRAF's revenue for repayment ot the former.
       VERDICT: Not guilty. The decisions werre lawful.
       ..............................................................................................
       DEFENDANTS: Eight state officials overseeing the bidding process.
       CHARGES: Wrongfully setting up bidding conditions to help certain bidders, and negligence investigating collusion and shared interests among bidders.
       VERDICT: Not guilty. No evidence suggested their wrongdoing. The defendants checked bidders' documents correctly as required.
       ..............................................................................................
       DEFENDANTS: Bid winner Charoen Pokphand Seeds (CPS) and two other bidders
       CHARGES: Bidding collusion by submitting false documents on their credentials and acquisition of sufficient rubber planting areas to help CPS win the deal. The three companies shared business interest and lines of management.
       VERDICT: Not guilty. The credentials documents contained no false statements.

CP TO PURSUE PLAN AFTER COURT VERDICT

       The Charoen Pokphand Group will shortly proceed with its integrated rubber business plans following the Supreme Court's acquittal yesterday of 44 defendants accused of wrongdoing in the controversial sapling scheme.
       Criminal charges against former deputy agriculture minister Newin Chidchob and four other ex-ministers, as well as bureaucrats and businessmen, including those of the CP Group, were all dropped.
       The court's verdict, which took two and a half hours to read out, said no laws had been violated, because the scheme, costing Bt1.44 billion during the tenure of ousted prime minister Thaksin Shinawatra, was intended to develop rubber plantations in the Kingdom.
       The scheme, in which 90 million rubber saplings would be handed out to farmers, had been initiated by Newin, now a powerful figure behind prime Minister Abhisit Vejjajiva's coalition government, as well as other ex-ministers, including former deputy premier Somkid Jatusripitak and former commerce minister Adisai Bodharamik.
       If found guilty, Newin and others could have faced imprisonment, because they stood accused of violating the Criminal Code, state procurement guidelines and other laws.
       Following the Supreme Court's verdict, Montri Congtrakultien, president of the CP Group's Crop Integration Business Group, said the firm would proceed with its three-point plan for achieving integration of its rubber-business development programme.
       Given that the 90-million-sapling scheme was suspended, he said the group would take responsibility for delivering the remaining 16 million saplings to growers.
       Its business policy is to promote the use of hybrid JVP 80 rubber saplings under the Agriculture Department's promotion project.
       Second, the group early next year will introduce rubber-tree harvesting machines that will allow farmers to tap rubber trees in all weather, including rain.
       In addition, the group is also in talks with potential partners from Japan and China to join forces in developing value-added rubber products. They include Unimax International, a Chinese manufacturer and exporter of various kinds of sealing and thermal insulating products.
       Federation of Thai Industries chairman Santi Vilassakdanont said all parties should accept the Supreme Court's verdict.
       "I believe most people are happy with the court's verdict. Since all 44 defendants - who are politicians and state officials - have been found not guilty, things should be able to move on smoothly," he said.
       Spa-Hakuhodo chairman Kitti Chambundabongse called the rubber-sapling verdict "fair".
       "Our judiciary system and its verdicts must be respected," he said, adding that the sapling scheme was good for people and their livelihoods.
       "The rubber-sapling project needs to be implemented flexibly, due to its nature as an agricultural project."

An inconvenient truth from the plains of Isan

       Some people don't believe global warming is real and many are not so sure it is happening now. To these people Vichein Kerdsuk, a researcher at the Research and Development Institute (RDI) of Khon Kaen University, would like to say that climate change is definitely already taking a toll on the Thung Kula Ronghai (the plain of crying nomads), the heartland of the world famous Thai hom mali jasmine rice.
       CHANGING TIMES: An old farmer surveys his rice farm in the northeast. Climate experts have warned of drastic declines in crop yields due to climate change.
       A paper presented to the RDI symposium 2009 by academics and his team provides evidence that the northeastern plain is already experiencing the impacts of global warming, including a higher mean temperature, change in the rain pattern and more frequent natural disasters.
       Farmers in the plain, which is the largest area of jasmine rice cultivation in the country, have suffered on average a 45% reduction in production of hom mali rice in recent years, according to the research.
       The study also showed extreme weather swings - drought and floods are an increasing threat to farmers in the plain.
       "Climate change is shaking up the 'Kitchen of the World'," Mr Vichein said, referring to the slogan coined by Dhanin Chearavanont, chairman of the Charoen Pokphand Group, and taken up by the Thaksin Shinawatra government to promote Thailand's position as a major global agricultural player.
       Thai jasmine rice has long been popular around the world because of its taste and its good price, but the market has become highly competitive, with many countries now producing the rice variety. The "Kitchen of the World" campaign has sought to differentiate Thai hom mali grains from the competition and add value to the product.
       While the campaign has not been a priority of the present government, there is no question of hom mali's continuing importance to the country's export portfolio. According to the Thai Rice Exporters Association, in the first five months of 2009 Thailand shipped 1.17 million tonnes of Thai hom mali rice, worth 28.5 billion baht.
       PRIDE OF THAILAND: A farmer with hom mali shoots in his hand.
       Thung Kula Ronghai covers 2.1 million rai (3,360 square kilometres), an area five times the size of Singapore, spread throughout the five northeastern provinces of Roi Et, Maha Sarakham, Surin, Si Sa Ket and Yasothon.
       Northeastern farmers have an intimate relationship with the cycles of nature and have always had to deal with climate variations, but the changes in recent years - hotter weather and more frequent natural disasters - have been harder to adapt to.
       Buasi Srikhampha, 51, who has two rai of paddy field in Rasi Salai district of Si Sa Ket province, said her once-idyllic existence had turned into a kind of bad dream. "Everything has changed so quickly and life has become very hard," she said. "My crops are losing out to both drought and flood.
       "We are used to annual drought and know how to coexist with it, but we are not used to extreme weather coming on so swiftly and lasting so long," said the farmer.
       To get out from under the burden of the family's accumulated debts, her husband and her two teenage daughters have migrated to Bangkok to work, leaving her alone to take care of the farm.
       GREEN FEAST: Buasi Srikhampha gathers grass to feed her two cows.
       In this uncertain climate some farmers are reluctant to even sow their crops. Mrs Buasi said several of her neighbours who had been hurt by the unusually severe floods of last year are leaving their fields fallow for now, adopting a wait and see attitude.
       "The weather fluctuations are scaring them," said Mrs Buasi.
       SEASONS OFF KEEL
       The air in the plain feels somehow more tense than before, as if nature can no longer be trusted. Dong Noonto, standing under a tree as he looked over his field, lamented that the seasons have gone haywire.
       "When I was a boy, the rains would come and last a certain period of time," said the farmer, who has a nine-rai farm in Si Sa Ket province. "Now it is unpredictable."
       The 59-year-old, who had never heard of global warming, said that many are turning to the supernatural for an explanation. A strong belief in mysterious supernatural powers is still found in the villages of the plains, a mixture of Phi (ancestral ghosts), Buddha and Brahman, as well as many local gods who reside in the ancient plain. Many blame unexplained occurrences such as severe droughts, fierce thunderstorms and unrelenting rains as the work of supernatural powers.
       FARMER’S CONCERN: Dong Noonto watches over his young hom mali rice plants, above. He is worried his fields might be swallowed by flash floods.
       But some devout Buddhists like Mr Dong see it otherwise.
       "Some people who have lived in the plain for a long time believe this calamity is the work of Chao Phor [an ancestral ghost], because he is angry," said Mr Dong. He believes, however, that he and the other farmers in the plain are victims of their own karma.
       "When you talk about global warming to farmers there aren't many who really understand what you are talking about," said Mr Vichein. Authorities should educate local communities about climate change and its impacts, he said, adding that such information is of vital importance to farmers in certain parts of the country which are prone to extreme weather conditions.
       Mr Vichien hastened to add that he was not saying that the farmers are ignorant. During his study he witnessed many locals adjusting their farming schedules and methods in light of the changing conditions.
       In some instances farmers have actually benefitted from the change. For example, some whose fields are on higher ground have taken advantage of increasing volumes of rainfall to initiate a second yearly crop, as is done by farmers in the Central Plain.
       GROWING SEASON: Verdant rice fields under cultivation.
       But Mr Vichein said that overall global warming is driving wild climate swings that are punishing the northeastern provinces with increasing frequency.
       One clear consequence is the shifting of seasonal patterns. He said harvesting was typically being done much earlier - from late November to early October - due to a change in the rain pattern. In order to come up with suitable and timely measures to deal with and mitigate the effects of climate change, Mr Vichein is embarking on a wider and more in-depth research project to determine the impact of global warming in the Chi and Moon river basins. The research will cover up to 19 provinces in the Northeast.
       Of his work in the Thung Kula Ronghai, he said: "Hopefully, the changes observed here can provide an early warning system for the rest of the country." He hopes his work will help to develop a sound scientific model for farming in a more threatening environment.
       While a definitive answer will take years of careful study, the climatologist said the country should expect more extreme weather in the years ahead as rising ocean temperatures and diminishing rainforests cause shifts in global climate patterns.

Thai farmers "can win with global firms"

       Investment in agriculture by transnational corporations could help farmers in developing nations such as Thailand,the United Nations says.
       Large-scale investment by agri-giants would help modernise and commercialise the sector, the United Nations Conference on Trade and Development (Unctad) said in a report.
       The body says in its "World Investment Report 2009", released yesterday, the involvement of agri-giants could provide much-needed funding and expertise.
       "Investment and contract farming could be a win-win strategy [for governments]," said Nagesh Kumar, director of macroeconomic policy and development at the UN Economic and Social Commission for Asia and the Pacific (Escap).
       Contract farming is when foreign supermarkets or food processors agree to buy crops from local farmers.
       The report said that under such arrangements, the companies transfer skills to the farmers and link them to global markets. The transnational giants also provide seeds and technologies.
       Foreign direct investment in which transnational firms own assets and land could also boost productivity, the report said, adding that many developing governments have been slow to realise the benefits.
       On the downside, job losses and excessive dependence of farmers on the companies to supply input or buy produce could result.
       In promoting contract farming, host countries should try to safeguard the interests of farmers, the report said.Model contracts would protect farmers in their negotiations with the companies.
       Chanin Meepokee, director of Thammasat University's economic research and training centre, said the government would find it hard to take such advice.
       Farmers ended up losing in many contract farming deals because they lacked access to market information.

ICCO sees less surplus

       The International Cocoa Organisation (ICCO) has cut its global 2009-10 cocoa surplus forecast due to an improving economic outlook, its chief Jan Vingerhoets told Reuters financial television yesterday.
       The London-based ICCO has cut its 2009-10 global cocoa surplus forecast to between 25,000 and 50,000 tonnes if weather conditions are normal, Vingerhoets said.
       In April, Vingerhoets had forecast a global cocoa surplus of more than 100,000 tonnes.
       But he said an improving global demand outlook led the ICCO to scale back the forecast surplus.
       "We can be more optimistic about economic recovery in the coming crop year, starting in October," Vingerhoets told Reuters financial television in an interview."The demand outlook is better than in April."
       He also referred to concerns over the impact of the El Nino weather pattern on cocoa production in countries such as Ecuador and Indonesia, and worries over production in top grower Ivory Coast, including the effects of pest and disease.
       Vingerhoets said that if production was lower than expected, due to the impact of El Nino or slowing output in Ivory Coast, then the world could slip back into a deficit of cocoa of around 50,000 tonnes in crop year 2009-10.
       Vingerhoets said he expected global cocoa demand or grindings to rise by 1.5-2.0% in the 2009-10 crop year starting on October 1, compared with the previous year, aided by the improving economic outlook.
       He forecast that benchmark ICE cocoa futures would move in a $2,500-3,500 range during the coming crop year.
       ICE futures were up $27 at $3,125 per tonne early yesterday.
       Speaking on the sidelines of ICCO meetings in London, Vingerhoets said he expected Vietnam and Sierra Leone to join the organisation soon.
       He also said plans to move the ICCO to Abidjan in Ivory Coast had been shelved, and the body would continue to be based in London for the time being.

Crop insurance programme not expected to hit rice exports

       Thailand's new crop insurance programme will not affect the country's position as the world's leading rice exporter, say local academics.
       Somporn Isvilanonda, an economist with Kasetsart University, said the crop insurance programme was in line with market principles while still reassuring farmers of receiving a fair price.
       For years, the government has supported the prices of key crops such as rice by allowing farmers to pledge their crops with the Bank for Agriculture and Agricultural Co-operatives at set prices.If market prices fall below the mortgage price, then farmers can transfer their crops to the state. On the other hand, if market prices stay above the mortgage price, farmers can sell their crops in the open market and pay off the bank directly.
       In practice, mortgage prices have often been set to subsidise farmers, resulting in upfront outlays for the government of more than 100 billion baht per year.
       The new system is an insurance programme under which the government will pay farmers the difference between market prices and guaranteed prices for a limited quantity of crops. The change will slash the state's upfront costs and indirect expenses such as storing pledged crops.
       Benchmark prices will be announced on the 1st and 16th of each month.
       Volatile global prices and rising production costs threaten small farmers,which could lead to Thailand's agricultural sector being dominated by large producers, said Mr Somporn.
       Mortgage prices jumped from 7,000 baht per tonne of paddy in 2004 to 14,000 baht in 2008 as global prices rose.
       But the price rise and the price mortgage programme led farmers to increase production with too little consideration for quality and efficiency, said Mr Somporn. As product quality fell, the country lost competitiveness to countries such as Vietnam, the world's secondlargest rice exporter, he added.
       Top-quality Thai rice still enjoys a premium of about US$100 per tonne over Vietnamese rice in the global market,he said. But some farmers have been prompted by high pledging prices to cultivate lower-grade, faster-growing strains for quick returns, to the detriment of the overall industry.
       Only 40% of the 100 billion baht committed to the rice mortgage programme in previous years is estimated to have actually reached the hands of farmers,he added. In his view, the insurance programme is likely to be much better at directing funds to farmers and at cutting waste and corruption.
       Ennoo Suesuwan, the acting president of the Bank for Agriculture and Agricul-tural Co-operatives, said guarantee prices under the insurance programme would be based on average prices sampled at different markets across the country.
       Guarantee prices should be within 5% of market prices, with export prices and Chicago futures prices also being used in the calculation.
       Insurance will be offered free to registered farmers for now. But in the future,insurance coverage might be free for up to 25 tonnes of produce per customer,with a guarantee fee being charged for coverage of additional produce, he said.

THAI FARMERS MAY GET HURT BY ASEAN FTA; TIGHT CONTROL NECESSARY

       With trading being liberalised among Asean countries next year, Commerce Minister Porntiva Nakasai is planning to propose that Prime Minister Abhisit Vejjajiva make rice-crop management part of the national agenda.
       The move is aimed to stabilise growth and rebuild the Kingdom's competitiveness once the Asean free-trade agreement goes into effect next year.
       Porntiva said the government needed to make the development of the rice industry part of the national agenda and cover issues such as planting, trading, marketing and stabilising price.
Under the Asean Free Trade Agreement, import tariff on rice will be cut to zero among Asean members from early next year. However, farmers could end up bearing the brunt of things with rising production costs, lower yields and low development in the industry.
       The minister said the national agenda should include measures to stop rice from neighbouring countries from flooding the Thai markets.
       Porntiva said Thailand should prepare for the free-trade agreement by complying with the open-market scheme as well as setting up clear-cut measures that prevent vast amounts of cheap goods from neighbouring flooding the Thai market.
       Next month, the Foreign Trade Department will come up with concrete measures to control rice imports, including sanitary standards and stringent border controls.

Thai rice policy shift may depress prices

       For the first time in decades, Thailand,the world's biggest rice exporter, will not buy directly from farmers in the coming harvest season, a shift likely to prompt a jump in exports that will push down world prices.
       It marks a dramatic reversal of fortune over the last year for the rice market,for which global prices surged along with those of other food staples in early 2008 as funds flooded into commodities on speculation of rising demand.
       A flood of rice from Thailand, on top of rising sales from No.2 exporter Vietnam and increased output from Burma and Cambodia, could quickly push benchmark export prices down by a quarter to $400 a tonne or lower, analysts and traders said.
       "If there is no weather catastrophe or any sudden drought, I expect Thai rice prices to fall to around $380 to $400 a tonne by the end of this year due to rising supply," said Chookiat Ophaswongse, president of the Thai Rice Exporters Association.
       For the moment, benchmark 100%B grade white rice is holding at $540 per tonne, helped by the government's decision to extend its buying programme until the end of September to face off protests by farmers.
       That is exactly half the record high of $1,080 per tonne seen in April 2008 at the peak of last year's world food crisis. Thai prices have slumped since early 2009 when demand subsided as most big importers had secured supplies.
       The fall was in line with global trends as supply in key producing countries is on the rise, including in the United States, the world's fourth-biggest rice exporter.
       US rice futures on the Chicago Board of Trade (CBOT) for November ended down 35 cents at $13.16 per hundredweight on Monday on prospects of a bumper American crop.
       In Southeast Asia, the world's main rice-producing region, supply should rise sharply by the year-end.
       Vietnam expanded its rice stockpiling scheme last week, saying it would buy another 500,000 tonnes on top of the 400,000 it bought in August to stop prices falling under the 35.99 million tonnes the US Department of Agriculture (USDA) says the country will produce this year.
       But Thailand has said it will no longer support farmers by buying directly from them, as it has done for years, citing the need to cut huge storage costs.Consequently, all of the 2009-10 crop of perhaps 20 million tonnes will hit the market.
       Instead of using a pledging scheme,which offered high prices to win political favour in rural communities, the government is introducing an options programme. Authorities will set a benchmark price and pay farmers the difference if they are forced to sell to millers at a price below that level.
       "This means there is no big buyer such as the government to drain some supply out of the market to help lift prices any more and prices could drop sharply," said Kiattisak Kanlayasirivat of Novel Agritrade (Thailand) Co Ltd.
       Moreover, the rice the government has bought in the past and now holds in its stocks will add to the downward pressure on prices - since traders know it will be released at some point.
       Thailand is holding its highest-ever stock of 7 million tonnes and has failed to push ahead with plans to reduce it.
       In India, rice stocks have risen to 30.1 million tonnes from 23.2 million a year ago.
       Traders said that was enough to satisfy domestic consumption but not enough for India to return to the export market in a big way, especially as the monsoon rainfall in rice-growing northwestern states was about 21% lower than normal.
       In the past, before the supply problems that forced up prices last year,India vied with Vietnam to be the second-biggest exporter after Thailand.
       However, other countries are starting to add to supply.
       Burma in particular is re-emerging as a player. It aims to export up to one million tonnes in the fiscal year to next March. As of late August it had exported 600,000 tonnes, compared with 666,400 tonnes in 2008-09 and 358,500 tonnes the previous year.
       All this will put pressure on prices to fall.
       "There is no reason for prices to rise. What we want to know is how much they will fall as buyers realise there will be plenty of rice next year,"said Sumeth Laomoraporn, president of CP Intertrade in Bangkok.
       The fall in prices should stimulate export demand, traders said, especially if big importers start to rebuild stocks next year after struggling to find grain at affordable prices in 2008.
       Thailand could be a beneficiary in terms of export volume.
       "The new Thai intervention plan should bring down export prices and could help Thailand grasp bigger market shares," said Paka-on Tipayatanadaja,an analyst at Kasikorn Research Center in Bangkok.
       According to KResearch, Thai exports in 2010 could reach 10 million tonnes,a record high.
       Chookiat of the Thai Rice Exporters Association said 2010 exports could go even higher than 10 million tonnes if the government managed its stocks wisely, selling gradually without flooding the market.
       Vietnam could also export a record amount this year,6 million tonnes,and that could go even higher in 2010 if the Philippines, one of its traditional buyers, stepped up its buying as prices fell, Paka-on said.

Cambodia joins ANRPC

       Cambodia has joined the Association of Natural Rubber Producing Countries in the hope of further developing the nation's rubber industry,a government official said yesterday.
       Ly Phalla, director-general of Cambodia's directorate of rubber, said the ascension to the inter-governmental organisation would bring its burgeoning industry new technology and help with production and marketing.
       The Cambodian government had privatised some 41,600 hectares (102,800 acres) of state-owned rubber plantations in recent years, Ly Phalla said.
       Cambodia is the 10th country to join the rubber association, which includes China, India, Indonesia, Malaysia, Papua New Guinea, Singapore, Sri Lanka, Thailand and Vietnam.

CP'S NEW FACILITY GIVES RICE PRIDE OF PLACE

       CP Trading Group plans to establish a Bt3.5-billion rice processing and trading facility in Ayutthaya province to ensure "single-standard quality" and facilitate future expansion.
       Set to be complete next year, the centre will be located on about 550 rai and will include the group's third rice processing and packing plant, with a total capacity of 1.08 million tonnes. Rice will be directly shipped from a river port nearby and an inland container depot.
       CP Trading's head office will be moved to the location from Bangkok, but a Bangkok office will be maintained as a business coordination unit. Started in 2007, the project is aimed at positioning the rice trade as the firm's core business.
       Prasit Damrongchietanon, chief executive officer of CP Trading Group, said completion of the project will boost the group's rice production capacity to 2.5 million tonnes.
       The firm already has two processing facilities in Ayutthaya and Pathum Thani and three rice mills in Buri Ram, Kamphaeng Phet and Suphan Buri.
       Prasit said the group's total rice trade volume is forecast to reach 1 million tonnes this year, with exports and domestic sales contributing 50 per cent each.
       "CP Group has focused on rice, developing the necessary fundamentals to ensure this business milestone is reached and strengthening the group's competitiveness," Prasit said.
       CP Trading Group manages its rice trading through CP Intertrade, its marketing arm, and markets the rice under the Royal Umbrella brand. The brand is ranked as the country's fifth-biggest export product, with total volume of 600,000 tonnes worth Bt9 billion shipped last year. However, this is forecast to drop to 500,000 tonnes, worth Bt8.5 billion, this year in line with the slowdown in the country's overall rice exports.
       Sumeth Laomoraphorn, president of CP Intertrade, said the company exported 265,591 tonnes of rice worth Bt6.3 billion during the first seven months of this year.
       The company's domestic rice sales are projected to reach 530,000 tonnes worth Bt11.8 billion this year. Its total sales reached 287,644 tonnes of rice worth Bt7.15 billion in the first eight months.
       The Kingdom's total rice exports are expected to reach 8.5 million to 8.7 million tonnes this year.
       Prasit said CP Trading Group has had to prepare a new rice-business plan to cope with increased competition from both existing traders and newcomers. However, the business still has room for growth in the areas of bagged rice and value-added rice products, he said.
       The tougher competition, however, will have a positive impact on the industry, Prasit said, as it will force traders to improve the quality of their rice and to develop new marketing strategies. The rapid expansion of modern-trade channels in Thailand has been a key factor in the switch to bagged rice, which has become popular among consumers, he said.
       The rice business is now managed
       by a young generation of highly
       educated executives who have em-braced modern-trade models to boost
       sales, Prasit said. This has not only widened market opportunities but
       also led to rapid changes in trading
       patterns, as well as business diversification.
       "The Kingdom's major rice exporters are not the established traders of old, but newcomers formed by small local rice traders and millers," Prasit said, noting, however, that quality is still the most important factor.
       Prasit said CP Trading Group is considering looking for business partners to launch new rice products. This strategy, he said, will support the group's goal of achieving complete upstream-through-downstream production.
       The company is also considering a plan to list on the Stock Exchange of Thailand, he said.

Farmers assured of equal benefits

       LOP BURI : Farmers have been assured that they would receive equal benefits under the government's crop price guarantee scheme, including those who do not have any farmland of their own, says Prime Minister Abhisit Vejjajiva.
       DISRUPTION BID: Security officers force back red shirt demonstrators as they try to disrupt Prime Minister Abhisit Vejjajiva’s visit to Lop Buri’s Tha Wung district yesterday.
       Mr Abhisit spoke to farmers yesterday during his visit to the province, where the prime minister pre-recorded his Chuea Man Prathet Thai weekly programme, which will be broadcast today.
       About 800 farmers registered under the crop price guarantee scheme in Tha Wung and Muang districts attended the meeting.
       Around 23,000 farmers in this central province have joined the scheme.
       The PM stressed that landless farmers were also guaranteed inclusion in the scheme as long as they grew crops and the community committee could verify their rights.
       Mr Abhisit said farmers would be given equal access to the government's subsidies when the pricing of the farm products is done.
       Under the traditional crop price mortgage programme, only about 300,000 farmers out of a million-strong had enjoyed the benefits of the programme. The others were left out in the cold due to a limited number of mortgage quotas.
       Rather than purchasing the crops outright under the current mortgage scheme and storing them in state warehouses, the government will make up for the difference between the guaranteed and the market prices, significantly reducing the total cash outlay and storage costs paid by the state.
       A farmer will be guaranteed a crop price quota of between 20 and 25 tonnes, said Mr Abhisit.
       "The government can't afford to raise its guarantee ceiling more than this because it would create too much burden on taxpayers."
       However, Mr Abhisit conceded that the scheme might not eventually be successful and could lead to a fall in popularity of his government. " But the government would proceed with it for the sake of the majority of farmers."
       Some 5.16 million farming families in the country have registered for the scheme so far, says the Agriculture and Cooperatives Ministry.
       The ministry expected the scheme to cover 22.7 million tonnes of paddy in the first crop, 4.2 million tonnes of maize, and 23.58 million tonnes of tapioca.
       The government, through the Bank for Agriculture and Agricultural Co-operatives, plans to spend a total of 43 billion baht on options for rice, maize and tapioca in the 2009/2010 harvest.

More parboiled rice to South Africa

       Thai exporters of parboiled rice to South Africa have benefited from a ban on such exports by India.
       A trade mission led by Commerce Minister Porntiva Nakasai is visiting South Africa, which has placed an order of 650,000 tonnes of parboiled rice. The deal's export price is quoted at US$620 (Bt21,100) per tonne, making a total value of Bt13.75 billion.
       With the order, Thailand becomes the world's biggest parboiled rice exporter, with parboiled rice accounting for 55 per cent of the country's total rice exports.
       Porntiva said the ministry would soon propose to the Rice Policy Committee that it release the government's paddy-rice stockpile. The move would support producers of parboiled rice for export.
       "The government must facilitate rice exports, but exporters cannot find paddy rice to produce parboiled rice. The lack of paddy rice supply could halt the Kingdom's exports," he said.
       In addition, the Public Warehouse Organisation also signed a memorandum of understanding with Kwazulu-Natal province, the logistics-promotion zone in South Africa. The contract calls for investigating the possibility of setting up a Thai distribution centre in the country. The South African government has thrown its full support behind the idea, including tax exemptions and a reduction in import inspection and procedures on Thai goods.
       "If successful, it will be Thailand's first distribution centre in the region," Porntiva said.
       Accompanying the trade mission, Thai Rice Exporters Association president Chookiat Ophaswongse said India was likely to extend its rice-export ban until next year's first quarter.
       "India's export ban will benefit Thai parboiled-rice exports," said Chookiat.
       The proportion of the Kingdom's parboiled-rice exports has increased from 40-42 per cent of total rice exports to 55 per cent since India implemented the export ban.
       Total parboiled rice exports amounted to 5 million tonnes last year. Its proportion of total rice exports will increase to 60 per cent in the near future.
       Chookiat added that the prospects for jasmine rice in south Africa was not bright, because of its high price. South Africa imports only about 7,000 tonnes of Thai jasmine rice per year.

Nepal villagers on climate change frontline

       Three years ago Naina Shahi's husband left their small village in rural Nepal to seek work in neighbouring India, leaving her to bring up their three children alone.
       The dry winters and unpredictable monsoons Nepal has experienced in recent years had hit crop production on the couple's land plot in the foothills of the Himalayas, forcing them to look for other ways to feed their family.
       For the past two years, their crop has failed entirely and Shahi now buys rice on credit from a local shopkeeper while she waits for her husband to return to their village with his earnings.
       "My husband stopped farming because this place is not good for growing crops. We needed to earn money to feed the children," Shahi,35, said in the remote village of Bhattegaun in midwestern Nepal.
       "There is not enough rainfall for the crops to grow well and we have to walk for two or three hours every day to get water."
       International aid agency Oxfam says Nepal's changing weather patterns are threatening the livelihoods of hundreds of desperately poor communities already struggling to produce enough food to survive.
       In a new report released recently,100 days before a conference in Copenhagen aimed at sealing an international accord on fighting climate change, Oxfam warns of the potentially devastating effects on people in the Himalayan nation.
       "The majority of Nepal's population are poor farmers reliant on rainfall and occupying small parcels of land that can barely produce enough food for the family," it said.
       "They often live in areas most at risk to floods and landslides and are more reliant on local natural resources such as forests and water.
       "Even small changes to rainfall patterns can have devastating consequences on their crops," said the report,based on interviews conducted in rural communities across Nepal in February and March this year.
       Almost a third of Nepal's 28 million people live below the poverty line and the UN's World Food Programme said recently there had been a "sharp and sustained decline in food security" in recent years.
       It blamed a rise in food prices and a series of unusually dry winters.
       This year Nepal's winter rains failed altogether, leading to severe water shortages and power cuts of up to 18 hours a day in the capital as hydroelectric projects struggled to meet de-mand.
       There is no firm scientific evidence linking the winter droughts to climate change, and rapid population growth and a lack of development during the 10-year civil war have contributed to Nepal's rising food shortages.
       But low winter rainfall and the late onset of the monsoons are in line with what climate change scientists have predicted for the region, and Oxfam says Nepal must act now to help its citizens adapt.
       "There is no time to waste and nothing to lose," said country director Wayne Gum.
       "The government needs to do more to support local communities. Even if we're wrong about climate change and I don't think we are - people will always benefit from better water management systems."
       The residents of Bhattegaun, a settlement of around 150 mud huts deep in the forest, know little about the science behind climate change.
       But they say changing weather patterns are already forcing them to change their way of life.
       "These days, the weather is getting much hotter and the rains don't fall when they are supposed to," said 59-yearold Ram Bahadur Himal.
       "Landslides washed away our last plot of land so we moved here and settled in the forest. We ploughed the land, but since we moved here, there has been no regular rainfall."
       Most men of working age have left to seek casual work, leaving the backbreaking tasks of fetching water and firewood to the women.
       Padam Bahadur Sunar works in India for between five and eight months of the year, earning up to 25,000 rupees (11,000 baht) a month which he sends home to feed his parents and eight siblings.
       The 31-year-old recently got married,but he will soon be forced to leave his new bride behind when he returns to his work as a driver on Indian construction sites.
       "There has been less rainfall over the years and there is no irrigation for the farmland," he said."Without going to India I wouldn't be able to feed my family."