Fuel Crops Limit Area for Tobacco

Source from:  nationmultimedia.com 12/06/2007

The tobacco plantation area in eight northern provinces has dropped significantly this year as farmers are attracted by the higher prices of other crops, particularly corn. Published on December 6, 2007 Chiang Mai "The corn price this year is up by 50 per cent to about Bt6 per kilogram, due to the demand for the crop for ethanol production," Chiang Mai Tobacco Growers Association president Wiwat Saraithong said this week. "The tobacco plantation areas were never constant as some land was diverted for other crops, but that's seasonal and this year we are seeing the sharpest drop in plantation areas, particularly in Nan and Chiang Rai." Woranoot Jittalan, a grower in Mae Wang district in Chiang Mai, said that in her district the areas had fallen to 300 rai from 600 rai and the number of farmers had also dropped, from 2,000 to 200. "It's natural. Farmers spend six months a year to grow tobacco and clear the land for the next-round plantation, against two or three months for corn." Tobacco is one agricultural crop threatened by fuel crops, which are gaining popularity among farmers on the back of skyrocketing oil prices. Businessmen earlier expressed concern that if oil prices remain high as they have this year, more plantation areas would be reserved for fuel crops, leaving little area to grow food crops. Wiwat said farmers had also been encouraged to plant other crops due to lower rain in the North as well as quite stable tobacco prices. He also said farmers faced rejection from dealers if their tobacco leaves were found to have contained poisonous chemicals above certain standards. Woranoot said that in that case, the tobacco leaves would need to be sold at a steep discount to other dealers. Wiwat realised that with these risk factors, tobacco plantation areas in the eight northern provinces, which grow only Virginia leaves for the Thailand Tobacco Monopoly and for export, could be further diminished. "Growers in the provinces would need to shift to other crops if the production does not have economy of scale. We have not yet discussed what we should do. The areas have shrunk phenomenally this year," he said. Three decades ago, Thailand was a major tobacco production centre, with a combined output of 50 million tonnes of leaves. Now, the output is 17 million tonnes. While the Thailand Tobacco Monopoly regularly buys up 10 million tonnes, about 7 million tonnes are exported. Woranoot acknowledged that amid growing concerns about smoking-related diseases and other factors, she might need to grow other crops on her land. "I inherited this plantation from my grandfather but my children are not interested in continuing it. In these circumstances this business could be discontinued. What can I do but accept it?" Waranoot said, adding that she dreams of turning her land into paddy fields if the irrigation system in the area could be improved. Enditem