The ministry is planning to begin direct exports of tapioca products through its marketing arms. The strategy will allow it to buy cassava directly from farmers to ensure they receive maximum benefits from subsidy measures.

Deputy Commerce Minister Preecha Laohapongchana said yesterday that some tapioca mills that participate in the pledging programme had lowered buying prices to between Bt1.20 and Bt1.40 per kilogram when the government's guaranteed price under the pledging programme is Bt1.50.

"Farmers are suffering from collusion between traders and millers, and this has prompted the ministry to undertake the task of marketing," he said.

Preecha has ordered overseas commercial offices in 55 countries and the Foreign Trade Department to find export markets for tapioca. He hopes this strategy will allow the government to control the market and shore up domestic prices for cassava.

At the initial stages of the plan, the ministry will start exporting cassava and tapioca products due to low competition in the local market.

Earlier, the government planned to purchase 5 million tonnes of cassava from farmers, against the advice of traders, who said sales of tapioca products in the country rely on market demand. The country's tapioca production is expected to reach 22 million tonnes this year.

Traders have expressed their disagreement with the ministry's plan to purchase tapioca directly from farmers.

The ministry now has 20,000 tonnes of tapioca on hand and Preecha said it would buy more.

He said anyone involved in illegal trade competition faced three years in jail or a Bt6 million fine, or both.

Petchanet Pratruangkrai

The Nation