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STREET WISE

Samak tackles market issue

Shortly after Samak Sundaravej won the vote of the House to become Thailand's 25th prime minister, he went straight to a place that he apparently holds close to his heart, the high-end market of the Marketing Organisation for Farmers (MOF).

Published on February 4, 2008



He went there to check the prices of farm products to show that he cares about the plight of consumers who have to bear the burden of higher food prices.

As it turns out, Samak found that the prices for farm or food products available at the MOF market were higher than at the other fresh markets that he usually visits, such as Bang Kapi market.

Samak even made a pledge that he would ask the incoming agriculture minister, whoever that may be, to fix the problem of the expensive stall-leasing fee faced by merchandisers.

Matichon last week surveyed the stall-leasing rates in the market and found that the average daily lease is from Bt160 to almost Bt300 per day.

In 2005, the MOF decided to revise the rate by adding extra fees such as a "location" fee, requiring tenants to pay an additional Bt100,000 per square metre just to be there.

A number of vendors refused to pay the extra fees, even though the MOF allowed them to pay in instalments, charging an interest rate of between zero and 12.75 per cent, depending on the duration of the loan.

A vendor in the market was quoted by the newspaper as saying that around 200 vendors are refusing to sign a new contract with the MOF because they are not happy with the lease fee. They have united to raise the matter with the Administrative Court.

To demonstrate his leadership, Samak may have to show the public that he can solve the conflict between the vendors and the MOF.

Solving this fresh market issue could turn out to be as complicated as the stock market.

busdsk@nationgroup.com

The Nation



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