Chiang mai: Onion prices in northern Thailand have plunged by more than half, prompting the Commerce Ministry to take swift action to assist affected farmers.
According to Thai News Agency, the Department of Internal Trade has introduced seven measures aimed at stabilizing the market during the peak onion season. Currently, farmers are receiving just 5-6 baht per kilogram, a steep decline from the 13 baht per kilogram observed at the start of February.
Mr. Jirawut Suwannach, Deputy Director-General of the Department of Internal Trade, recently visited Mae Wang District in Chiang Mai Province alongside officials from the Chiang Mai Provincial Commerce Office and the Northern Weights and Measures Center. During this visit, it was noted that around 30% of the season's onion yield had already been harvested, leading to the significant price drop. The influx of produce, especially from areas like Mae Wang and San Pa Tong, has been identified as a major cause of the reduced farm-gate prices.
The sharp decline in prices has severely affected farmers' income, as the average price for mixed onions (sizes 0-3) has decreased by over 50% in less than a month. Additionally, farmers have raised concerns about onion imports from foreign countries last December, which have further pressured domestic prices. Even with appropriate tax payments, low declared import prices enabled importers to compete aggressively, exacerbating the situation.
To address these challenges, the Department of Internal Trade has expedited several measures. These include purchasing and distributing 1,000 tons of onions outside the production area at above-market prices and signing a Memorandum of Understanding with entrepreneurs to buy 6,700 tons worth approximately 80 million baht. Efforts are also underway to facilitate product distribution through provincial commerce offices in non-production areas, with a focus on smaller packaging options.
The government is campaigning to promote local produce and providing direct sales opportunities for farmers at provincial halls and government fairs. One such fair in Sa Kaeo province will feature onions from Chiang Mai. Additionally, there is a coordinated effort to boost exports to Japan through collaboration with the Commercial Attach© in Tokyo.
To further stabilize the market, the Department of Internal Trade is tightening import and movement controls in conjunction with the Customs Department and security agencies. Importers are now required to obtain permits and provide detailed information for traceability.
Despite the current challenges, the wholesale and retail prices of onions in Bangkok remain stable compared to the previous year. Chiang Mai province, accounting for nearly 70% of the country's onion production, is expected to conclude its onion season by the end of March. The Department of Internal Trade remains committed to monitoring the situation and implementing additional measures if needed to secure the livelihoods of local farmers.