Thai garlic farmers suffer as cheaper Chinese bulbs flood the market

[webfact 82,175]

Thai garlic farmers suffer as cheaper Chinese bulbs flood the market

By The Nation

 

 

More than 25,000 Thai farmers who grow garlic are facing steep competition from China, whose garlic is considerably cheaper due to lower production costs, the director of the Centre for International Trade Studies (CITS), University of the Thai Chamber of Commerce, Dr Aat Pisanwanich said on Monday (December 16).

 

The average cost of Chinese fresh garlic is Bt5 per kilogramme and Bt15 for dry garlic, while Thailand’s fresh garlic was priced Bt11 per kilogramme and Bt35 for dry garlic. 

 

 

Information posted at www.kasetprice.com on December 13 gave Thailand’s average retail price for dry garlic at Bt77 per kilogramme and that of Chinese garlic Bt50. Back home, Chinese farmers sell garlic on their local market at Bt14/kg. 

 

China is the largest producer of garlic and in 2016 grew 22 million tonnes of the total global production of 26.5 million tonnes, while Thailand was only able to produce 80,000 tonnes. Experts say world garlic production will increase to 31 million tonnes in 2025, with China remaining the biggest producer.

 

“The garlic market in Thailand is worth about Bt10 billion, of which Bt7 billion is Thai garlic, while the remaining Bt3 billion is imported, almost all of it from China,” Dr Aat said.

 

“Thailand needs to deal with the smuggling of garlic from China because while the official import figure is just 70,000 tonnes a year, the actual quantity is nearer to 100,000 tonnes, with much of it smuggled in and sold at a very cheap price.”

 

He added that Thailand has collected garlic import tax under World Trade Organization (WTO) regulations which is set at 27 per cent for the quota of 60-70 tonnes per year, and 57 per cent outside the quota. However, the price of Chinese garlic is still cheaper than its Thai counterpart.

 

“The government must reconsider the import measures by monitoring the retail price in China and Thailand, inspecting the import tax collection and controlling the garlic import companies,” he added.

 

Source: https://www.nationthailand.com/news/30379532

 

-- © Copyright The Nation Thailand 2019-12-17

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[tgw 1,644]

Quote

He added that Thailand has collected garlic import tax under World Trade Organization (WTO) regulations

which is wrong.

the tax is collected under a trade agreement signed by Thailand and China within the WTO legal framework.

it's not like the WTO decided anything.

[SteveK 8,601]

Well if they're selling less, Thai economics suggest they should increase the price to make up for lower sales volumes.

[BobbyL 6,275]

I predict this sort of thing will become the norm with the new China love - in from the government. 

[Thian 8,883]

The Thai and Chinese garlic are both tasteless....they should sell fresh garlic which tastes much better.

 

[Vacuum 14,704]

10 minutes ago, Thian said:

The Thai and Chinese garlic are both tasteless...

Agreed.

[SoilSpoil 3,350]

Rice more expensive than Vietnam's, garlic more expensive than China's, rubber of substandard quality. Agriculural sector is not having a great year. Thailand is not very competitive it seems.

[legend49 5,365]

Price of doing business with China, get used to it Thailand.

[fforest1 5,612]

“Thailand needs to deal with the smuggling of garlic from China because while the official import figure is just 70,000 tonnes a year, the actual quantity is nearer to 100,000 tonnes, with much of it smuggled in and sold at a very cheap price.”

 

 

I think China hides the garlic in all the meth shipments....

[Oziex1 10,281]

What's the problem,  recently the minister of saying anything told Thai industry to get out there and sell more stuff. 

Just like that. 

[RichardColeman 27,979]

3 hours ago, webfact said:

“The government must reconsider the import measures by monitoring the retail price in China and Thailand, inspecting the import tax collection and controlling the garlic import companies,” he added.

Ah, the ol' knobble the opposition plan

[Isaan sailor 3,915]

Looks like the Cha-Cha military regime shot themselves in the foot.  Too much pro-China—screw the Baht behaviour.  Now they’ll have to subsidise garlic, along with rice, rubber and other non-competitive crops.

[Thian 8,883]

The garlic from China can be up to 20 months old, tell that to the customers worldwide and they won't eat it anymore.

[trainman34014 15,396]

2 hours ago, SoilSpoil said:

Rice more expensive than Vietnam's, garlic more expensive than China's, rubber of substandard quality. Agriculural sector is not having a great year. Thailand is not very competitive it seems.

Thai's can't stand any competition as they just love ripping off their own people and anyone else who happens to want something !

[Golden Triangle 5,839]

It would appear that the Thais failed to understand basic economics, people buy the product if it is cheaper and of equal or better quality, not because it was grown in their backyard, next thing we will hear is that the government is giving subsidies because the Thai farmers don't understand how to make production more competitive.

 

This is wakey wakey time.