March 20, 2012
Thailand fertiliser prices increase considerably
Thai farmers are having difficulties with rising farming costs after the government allegedly permitted fertiliser chemical traders to up the retail price by 50% - 100%.
Though the product is on the price-control list, current Finance Minister Kittiratt Na-Ranong, who was a Commerce Minister in December last year, has allowed an increase in the price of fertiliser chemicals.
It was found that the rise in price averaged 50% - 100%, or about THB4,000 (US$130) - THB6,400 (US$208) per tonne, depending on different formulas.
According to the Internal Trade Department, the latest price of chemical fertiliser is quoted at THB882 (US$28.67) - THB905 (US$29.42) per 50-kilogramme bag from THB725 (US$23.56) - THB765 (US$24.86) for the 46-0-0 formula; at THB869 (US$28.24) - THB891 (US$28.95) from THB672 (US$21.84) - THB746 (US$24.24) for the 15-15-15 formula; and THB541 (US$17.58) - THB623 (US$20.24) from THB411 (US$13.36) - THB454 (US$14.75) for the 21-0-0 formula.
Earlier, the ministry had approved a 10% - 35% increase in the retail price since April 2011. After that, the government followed a policy to freeze the price.
Many fertiliser chemical traders have been seeking the ministry''s permission to increase the price again due to the surge in the price of fuel.
One chemical fertiliser trader said that traders could no longer cope with the higher production costs following higher price in the world market.