Wealthier farmers buoy SCG

Somluck Srimalee

The Nation

President Pichit Maipoom said yesterday that the highest demand came from provincial buyers, as farmers' incomes have doubled due to the sharp spike in rice prices.

He said the greatest demand was from those building their own houses. This has led to sales of roofing tiles growing by 10 per cent from last year, followed by ceramic tiles by 5 per cent and sanitary-ware at 2 per cent.

The company estimates sales of between Bt24 billion and Bt25 billion this year, up 8 per cent from last year, with 80 per cent of its domestic sales coming from the provincial market.

In contrast, demand from property developers continued to drop in the first quarter, despite the tax incentives announced in March.

Pichit said that although developers are now building new units to lure buyers who are expecting to benefit from the tax incentives, demand for building materials would rise only at the completion of the homes. Demand is expected to pick up in the second half.

Last year, SCG witnessed lower sales revenue from construction materials due to poor demand. Sales dropped from Bt22 billion a year earlier to Bt21 billion.