PM taps tapioca to fight '3-f' crisis

Prime Minister Abhisit Vejjajiva yesterday hailed tapioca as a major commodity to be used in combating the "3-F" crisis, consisting of food, fuel and finance.

"As the world's leading tapioca supplier, involving more than 500,000 farmers, Thailand should boost our quality tapioca production, in order to added value and increase supply to the world market," he said.

The government will focus on supporting the development of tapioca production, in order to improve the market value of the products and farmers' incomes, he said while presiding over the opening of the World Tapioca Conference at Impact Muang Thong Thani.

Tapioca is not only for consumption, but also for paper, pharmaceuticals, textiles, biodegradable products and alternative energy.

The two-day seminar organised by the Foreign Trade Department is aimed at increasing and exchanging knowledge on research and development (R&D) of cassava and tapioca products and enhancing cooperation for the development of the products worldwide.

The event also offers a platform for international trade negotiations.

"Thailand has been fortunate in understanding the significance of tapioca for so long. The government will continue our policy of supporting research and development for tapioca crops and products; for instance, for use as alternative energy," Abhisit said.

Tapioca is one of the Kingdom's key commodity exports, generating more than US$1.4 billion (Bt48.89 billion) in revenue a year and involving 500,000 farmers.

UN Conference on Trade and Development secretary-general Supachai Panitchpakdi said the global financial crisis could lead to a food shortage, because falling agricultural prices might discourage farmers from raising crops.

"A new round of food crisis could occur, as farmers will have low interest in growing commodities after facing devalued crop prices," Supachai said.

For instance, global rice production has dropped 10 per cent since last year.

To prevent a food crisis, each government must have a policy of spurring economic growth that should not affect other sectors, including farming, he said.

According to the United Nations, the agricultural subsidies of each nation are lower than previous years, he said. As a long-term measure, the government must help farmers reduce their production costs.

Price-intervention programmes should be used only when necessary, such as when there is too much supply in the market. The government must focus on lifting yields and promoting R&D for key commodities, including tapioca, Supachai added.

Commerce Minister Porntiva Nakasai said her ministry was targeting export growth in tapioca products to Bt50 billion this year and Bt51 billion next year, up from Bt48 billion last year.

At the event, local and foreign participants agreed to trade at least Bt4 billion worth of tapioca this year, she said.