The Ministry of Agriculture and Cooperatives, together with six major Thai fertilizer producers, has dispelled rumors of fertilizer shortages caused by the Middle East conflict. They confirmed that domestic stockpiles exceed 900,000 tons, sufficient to meet the upcoming production season's demand. Plans are in place to negotiate with Russia for an additional import of 1 million tons. Private companies have pledged to keep prices stable and not take advantage of farmers.
The ongoing unrest in the Middle East has started to impact global transportation and production costs. Recently, Thai farmers have expressed concern over the issue."Urea fertilizer shortage"and the possibility of rising prices.
To resolve these issues and reassure the agricultural sector, Mr. Suriya Juangroongruangkit Minister of Agriculture and Cooperatives, called an urgent meeting with six leading Thai fertilizer manufacturers, along with senior officials such as Mr. Winaroj Subsongsuk, Permanent Secretary of the Ministry, and Mr. Rapeepat Chantrasriwong, Director-General of the Department of Agriculture, to discuss concrete response measures.
Currently, three fertilizer shipment vessels carrying about 250,000 tons for Thai operators are anchored, awaiting transit in the Strait of Hormuz, directly impacted by the conflict.
Nevertheless, the Minister of Agriculture confirmed that Thailand still hasa quantity of fertilizer reserves totaling 900,000 tons, which is certainly sufficient to meet current demand. Farmers should not panic over circulating rumors.
Regarding this, Mr. Rapeepat Chantrasriwong, Director-General of the Department of Agriculture, stated that under normal circumstances, Thailand requires about 6 million tons of fertilizer annually. Beyond the existing 900,000 tons in stock, the government plans to import an additional 1 million tons to support the planting season starting in May.
Additionally, the Department of Agriculture has introduced cost-cutting measures on packaging by allowing alternative materials such as compressed paper to replace increasingly expensive plastic, immediately reducing fertilizer bag costs and easing the financial burden on producers.
Representatives from the private sector unanimously confirmed their readiness to support farmers. Mr. Manas Chiaravanont, Chairman of the Executive Board of Chia Tai Company Limited, clearly stated that fertilizer prices will not increase and expressed confidence that various fertilizer formulas will remain available. They will cooperate with the Ministry of Agriculture as part of a "Team Thailand"to find joint solutions.Meanwhile,
Mr. Paitoon Tilokvichai, Chief Marketing Officer of Viking Fertilizer Company Limited, viewed the crisis as an opportunity for the private sector to negotiate with suppliers, potentially facilitating easier imports of raw fertilizer materials at lower prices. This aligns with Ms. Waranya Boonyawiwat, President of the Thai Fertilizer Producers Trade Association,who indicated that government facilitation measures will help reduce import times, allowing the situation to improve more swiftly.Read more news on " Government policy"