PUBLISHED: 14 Sep 2024 at 04: 00
The Thai Northeastern Rice Mills Association is requesting assistance from the government in negotiations to relax their lending restrictions in order to prepare for the upcoming harvest time because corn mill apparently lack financial cash.
The Thai Northeastern Rice Mills Association’s leader, Wichai Srinawakul, stated yesterday that commercial businesses had strict lending laws for corn mill, which affects their ability to purchase corn from producers for the upcoming season, which starts in the Northeast in November.
Mr. Wichai claims that even though the loans were secured, the banks just approved a certain amount of credit for the grain mill operators. The decision had an impact on the profitability of the mills as they prepared to buy rice from growers who have a 7.500 million-tonne harvest of rice in the northern region this year.
” Over 40 % of the 160 corn mill that comprise our agency’s account require funding from state-run business banks, and the sleep applied for loans from private lenders. If the authorities may work with the banks to alleviate lending restrictions that limit borrowing to rice mills, farmers will, thus, benefit greatly from the effort”, he stated.
Mr Wichai’s remarks followed a report Wednesday from Rangsan Sabaimuang, president of Thai Rice Mills Associations, regarding the falling rice prices.
According to Mr Rangsan, the rice mills have had to reduce price offerings to farmers. The price of polished rice dropped from 17, 800 baht to 17, 500 baht per tonne, and the price of unmilled rice dropped from 12, 000 baht to 10, 800–11, 000 baht per tonne.
If their finances do n’t improve, Mr. Rangsan warned that the mills might stop selling rice in a week.
He mentioned that the Phetchabun Farm Plants Association had previously announced the purchase of corn from farmers in a similar way. In response to a lack of funds, the group announced that it would not be purchasing grain from September 13 through September 15.
He said Pichai Naripthaphan, the newly appointed commerce minister, must support farmers and mills by negotiating with banks to offer low-interest loans for mill operators.
Pramote Charoensilp, president of the Thai Agriculturist Association, said he does not believe rice mills will stop buying rice from farmers.