Bangkok: The Ombudsman has taken proactive steps to tackle the pressing issue of coconut prices falling below production costs, creating significant challenges for farmers. Urgent measures have been proposed to open new markets at shopping malls, gas stations, and Thailand Post offices to aid in distributing the produce. Concerns were also raised about foreign investment in leasing orchards and the establishment of nominee processing plants. Additionally, the problem of counterfeit coconut water was highlighted, which is affecting the confidence in Thai products.
According to Thai News Agency, Mr. Songsak Saichue, Chairman of the Ombudsman, visited the provinces of Samut Songkhram and Ratchaburi on April 3rd to engage with coconut farmers and relevant agencies, following up on a previous meeting held on March 19th. The visit aimed to directly address the farmers' issues, with the primary concern being the low price of coconuts, averaging only 2-3 baht per fruit, which is below the production cost. Although some community enterprises and cooperatives benefit from assistance by purchasing coconuts at 5 baht per fruit, the support does not cover the majority of farmers.
To tackle the crisis, urgent measures are set to be implemented using five target provinces as a model. These include opening new market channels and promoting continuous sales of coconuts in modern trade outlets. Collaborations with PTT to sell coconuts at gas stations and with Thailand Post for distribution have been proposed. Additionally, the Ministry of Commerce and the Department of Internal Trade are urged to develop plans to elevate quality standards and expand into new markets to alleviate farmers' hardships swiftly.
Mr. Songsak also expressed concerns about foreign capital's influence in the coconut production chain, noting the establishment of packing plants and leasing arrangements. He urged the Department of Business Development and the Ministry of Agriculture to investigate these structures to close legal loopholes. Furthermore, the issue of counterfeit coconut water was identified as a significant problem, damaging the credibility of Thai products. Mr. Songsak called for clear scientific indicators and legal authority to halt the production of counterfeit items.
Mr. Prayoon Wisutthipaisan, chairman of a community enterprise in Ratchaburi, discussed the severe oversupply problem faced by fragrant coconuts, with at least 2 million entering the market daily. He noted that central purchasing centers have limited capacity, and marketing remains a significant challenge, despite government assistance in production. He highlighted the advantages held by Chinese producers due to their large market base, while Thai producers struggle to find markets for their goods, heavily relying on Chinese demand.
Comparing the Chinese and US markets, Mr. Prayoon pointed out China's advantage in waste management, while the US market focuses on importing coconut water and flesh, leading to waste disposal challenges in Thailand. He raised concerns about the influx of Chinese capital, emphasizing the need for strict monitoring measures to prevent any violations of Thai laws and economic principles. He also stressed the importance of addressing the "grey market" capital that could impact the economy in the long term.
Mr. Prayoon urged for government support in building cold storage facilities to help farmer groups sustain their incomes by storing coconuts during low-price periods. This would allow them to sell at higher prices later, securing a more stable income. Regular coconut water currently fetches about 10 baht per liter, whereas organic coconut water commands a price of 40-60 baht. Cold storage facilities would enable farmers to leverage these price differences effectively, ensuring long-term sustainability for the farming community.