Bad times dog Thai sugarcane farmers due to El Nino

Bad times dog Thai sugarcane farmers due to El Nino

By Anchalee Koetsawang

SUPHAN BURI, Thailand (Reuters): El Nino is an alien word to
Thai sugarcane farmer Panya Chankongsuwan but the catastrophic
effect of the disruptive weather phenomenon on his crops is
something he is very familiar with.

A severe El Nino-induced drought, which gripped Thailand last
year, devastated his crops and slashed the plantation's sugarcane
output to its lowest level ever.

"As a sugarcane farmer, I had seen bad years before but this
is so far the worst ever. The yield per planting area has dropped
by half while the cost of production has risen," Panya said in
the native drawl of Suphan Buri, a major sugar growing area
located about 150 km (90 miles) north-west of Bangkok.

The land Panya, 45, was born on has been passed down the
family for generations but he says he was forced to sell some of
it to raise funds to meet rising production costs.

"If tears can grow sugarcane, the situation might not have
been this bad," said Sawing Pookhang, another affected planter in
the area, who relies on support from sugar mills to survive.

Thailand is a leading world sugar producer and exporter. On
top of El Nino's recent havoc, the country is also weathering its
worst economic crisis in decades.

With 80 percent to 90 percent of cane plantations not
irrigated and heavily dependent on rainfall, sugarcane is perhaps
one of the hardest hit cash crops in the country.

El Nino's effects have prompted Thailand's Cane and Sugar
Board to revise down cane output projection for this crushing
season (November-June) to 42 million tons from 44.56 million tons
earlier.

Sugar planters were, until the drought hit, considered some of
the most secure farmers in the country as the industry here
operates on a complex but well-managed profit-sharing system
between growers and millers.

Cane supply is so short that during a recent mill visit for
journalists, executives had to ask mill workers to suspend
crushing until the visitors arrived to ensure there was enough
cane to put on a show.

"Sorry but we had to do this, otherwise we would not be sure
if we had enough cane to show you what crushing operations are
like. It is a catastrophe this year," said Supanit Manajit, an
executive at Thai sugar giant Mitr Phol Sugar Corp.

Supanit said many mills were expected to end crushing
operations prematurely due to supply shortages.

The effect on sugar exports has been just as disastrous.

Thailand's exports this year are expected to plummet to around
2.4 million tons from more than 4.0 million tons in 1997 due to
the severe cane shortage.

But El Nino, a periodic warming of sea surface temperatures in
the eastern Pacific, is not the only bane to Thailand's sugar
industry.

Poor crop management, lack of government support and higher
production costs have also eroded the industry's competitiveness,
industry officials said.

Isara Vongkusolkit, president of Mitr Phol Sugar Corp., said
if the problems were not addressed, Thailand's competitive edge
in the world market could erode fast.

"The government should chip in more to help. If they had
supported sugarcane planters on water resources, for example, the
impact of the drought might not have been this bad," he said.

"The government should pay more attention to farmers --
disseminate new know-how and information on productivity
improvement, supply them with water resources and help in soil
development," Isara said.

"Poor farm management is one of the factors that make our
production costs higher than they should be."

Although Thailand is a top exporter, its sugar yield per
hectare is ranked one of the lowest globally.

The average yield per hectare between 1987/88 and 1991/92 crop
was only 50 tons compared with 79.8 tons in major producer
Australia and 135 tons in Colombia.

Successful cane planter Prasit Chotivejsilp told Reuters most
planters were left to farm without knowledge of how to improve
efficiency.

"I saw some planters making mistakes when preparing the soil
by not raking it deep enough to maximize soil moisture and using
unsuitable fertilizer," he said.

Suphan Buri planters and industry sources agreed.

"I have not seen any commitment from the government in terms
of technology development. It's a live and let live mentality out
there," said an official at the Thai Cane and Sugar Corp.

"And joint efforts by the private sector and the government to
set up a research institute to improve productivity so far have
moved at a snail's pace," he said.