Harsher coconut import rules to counter price dip
The Commerce Ministry is mulling introducing more stringent controls on importers and applying non-tariff measures to tackle the domestic coconut price slump and help protect domestic growers.
Adul Chotinisakorn, director-general of the Foreign Trade Department, said the department is considering sanitary and phytosanitary (SPS) measures to curb imports.
The SPS measures are meant to protect humans, animals, and plants from diseases, pests, or contaminants. Mr Adul said one of the key problems is the misuse of imported coconuts.
“There are more than 80 coconut importers legally registered with the Foreign Trade Department who import coconut as raw materials for their factories,” he said. “But some of the imported coconuts may be sold to local traders, for which the importers hire people to remove the husks from coconut shells.”
Mr Adul said the department will soon submit a proposal to the Office of Agricultural Economics for the secretary to the vegetable oil and crop committee to consider imposing the new qualifications on coconut importers, along with new reference prices for coconuts.
He said the domestic coconut price slump may not stem from the imports, citing the country had imported 195,303 tonnes of coconuts from January to August, down 27.03% from 268,672 tonnes recorded in the same period last year.
Mr Adul said Thailand is bound by the World Trade Organization (WTO)’s regulations for coconuts, under which coconut imports are allowed during January-May and November-December.
WTO tariffs allow Thailand to import 2,317 tonnes of coconuts a year.
Imports within the quota are taxed at 20% and the import tariff for non-quota trade is 54%.
Eligible importers must be juristic persons who operate factories that use coconuts as raw materials.
Most importers use the Asean Free Trade Agreement, which bans tariffs for coconuts processed into vegetable oil.
In 2017, Thailand’s imported coconuts totalled 416,124 tonnes worth 4.62 billion baht, 384,102 tonnes of which were from Indonesia, 15,613 tonnes from Vietnam, 2,864 tonnes from Myanmar and 13,524 tonnes from Malaysia.
Thailand is expected to produce 860,000 tonnes of coconuts this year, much lower than domestic demand, which is estimated at 1.1 million tonnes.
Thailand is relying on imports of 241,000 tonnes in 2018.
The Office of Agricultural Economics said coconut plantations cover 1.119 million rai nationwide, with 203,461 households engaged in growing them last year.
A network of coconut farmers in Prachuap Khiri Khan recently urged the government to address the problem of falling coconut prices. They blamed imports for the price drop.
Planters in other provinces have also made complaints along the same lines.
Domestic coconut prices have fallen continuously since January this year. According to the Internal Trade Department, prices dropped from about 15.80 baht per coconut in January, to 15.50 baht in February, 13 baht in March, 11 baht in April, 9 baht in May, 7.40 baht in June, 6 baht in July, 5 baht in August and 4.64 baht this month.
The import prices of coconuts mostly from Indonesia and Vietnam average 8-9 baht.