Options plan wins farmers' support

       Shrimpers and farmers plan to submit a working plan to the government supporting the new options programme intended to stabilise prices of key commodities including shrimp starting in the next harvest season.
       The options programme to be used for maize, cassava, rice and shrimp would replace the traditional price pledging scheme that has caused huge financial burdens on the government and taxpayers for years.
       "We realised the burdens and considered the mortgage programme not only deepened corruption but did little to improve product prices," said Poj Aramwattananont, honorary adviser to the Thai Frozen Food Association, at a meeting in Songkhla last week.
       Exporters, processors and shrimp farmers have accepted the options programme for shrimp, expecting it will promote sustainable growth in an industry that earns 70-80 billion baht in export income a year.
       The government agreed to spend 1.4 billion baht to pledge 10,000 tonnes of vannamei white shrimp from farmers from July 15 to Sept 30 to lessen pressure over falling prices as exports slump. The pledging volume later increased by 5,000 tonnes to meet farmers' demands.
       The pledging prices varied based on the size of the shrimp, with 40 shrimp per kilogramme to be pledged at 155 baht,50 shrimp for 135 baht, and 60 shrimp for 125 baht.
       Under the new options programme,Mr Poj suggests the government set reference prices or insurance prices by considering costs of production and transport, export prices, risk factors from exchange rates and fuel costs, and farmers'profits.
       As with other crops, if the insurance prices fall below market prices, the government will use the put-option practice to absorb the difference.
       Panisuan Jamnarnwej, president of the association, encouraged shrimp farmers to form as a group or in cooperatives and supply product only to certified exporters or those that are members of the association to prevent any possible business risks, such as refusal to buy when prices change.
       Shrimp exporters and processors who run cold storage facilities have to inform the association about the farms where they want to buy shrimp. The practice should conform with the requirements for carbon footprint labels from the EU market, which considers the amount of carbon emitted during production.
       The association and representatives of farmers from the southern provinces that control about 70% of the country's shrimp production will present the plan to Deputy Prime Minister Korbsak Sabhavasu soon.
       Thailand's shrimp production is projected to be 400,000 to 450,000 tonnes this year, of which 362,000 tonnes would be exported.