The Ministry of Commerce of Thailand is planning to hold an online fertilizer trade matching event to organize business matching activities between more than 100 fertilizer exporters from more than 20 countries and Thai fertilizer importers, which is believed to solve the problem of rising fertilizer prices, after the Ministry of Commerce of Thailand has successfully purchased fertilizers from Saudi Arabia and Russia through business matching activities, and is preparing to The Ministry of Commerce is planning to hold an online business matching event for fertilizer trade at the end of August.
The Ministry of Commerce intends to organize a list of more than 100 fertilizer exporters from more than 20 countries around the world, and plans to arrange an online business matching event in late August to increase the domestic fertilizer supply chain channels and solve the fertilizer shortage problem for farmers.
The Ministry of Commerce of Thailand organized a business matching event between Saudi Arabian fertilizer exporters and Thai fertilizer importers, and the Thai side successfully purchased 324,000 tons. It also negotiated and reached a contract with Russian fertilizer exporters for 72,000 tons, but there were problems with remittances, transportation, lack of insurance coverage by insurance companies, and devaluation of the Thai baht, which made imported fertilizer more expensive. Russia said it would increase its quota for exports to Thailand from 500,000 tons to 1 million tons. It has also requested to purchase fertilizer from other import sources to ensure that even though fertilizer prices are high, there will not be a shortage of fertilizer in the country.
Currently, the world price of fertilizer has increased by 236% and the price of fertilizer in Thailand has only increased by 130%, which is more than 1 times lower than the increase in the world price of fertilizer, and the price of fertilizer in Thailand has increased and is still cheaper than many countries in the world. Previously, the Ministry of Commerce actively took care of the majority of farmers in terms of fertilizer by providing 4.5 million bags of low-priced fertilizer to help farmers from July 2021 to December 2021 at a price 20-50 baht per bag cheaper than in the market, resulting in the sale of 3.15 million bags. It also maintained the price of fertilizer for up to 1 year, which helped the majority of farmers. The increase in the cost of producing fertilizer made the producers and importers unable to adjust the price and reduce production, so in the end the price increase was allowed, but the increase did not reach the increase in production cost.
Source: Economic and Trade Window of the Consulate General in Khon Kaen
Post time: Aug-12-2022