Thai shrimp farms assess loss at $585 Million

Total damage suffered by Thai shrimpers in Phuket and Phangnga from the Dec 26 tsunami is estimated at 22.5 billion baht, including the loss of property and export opportunities, according to a report by the Thai Shrimp Association. The association yesterday submitted the report to US government representatives as part of a push calling for a review of anti-dumping duties levied on Thai shrimp imports last year.

A shrimp farm in Khao Lak, Phangnga, stands in ruins following the Dec 26 tsunami.

The US government announced final duties on shrimp imports from Thailand and five other countries in December after complaints from American shrimpers that the shipments were being dumped on the US market.

But the US International Trade Commission later announced that it could review the duties imposed on Thailand and India as an assistance measure following the Dec 26 tsunami.

US envoys visiting Phangnga yesterday agreed that the damage to the area had been huge, but declined to comment if the review by the ITC would result in a ruling favourable to Thai shrimpers.

Michael Delaney, the economic counsellor for the US embassy in Bangkok, said the decision on whether a review would be held would consider the views of US shrimp consumers, producers and authorities.

''But it is tragic to see the tremendous damage in terms of lives and property here. If you ask the farm owners or managers, each will tell you that they lost staff and employees,'' he said following a visit to one destroyed shrimp farm in Phangnga.

Mr Delaney, who will visit Phuket today, said he would submit a report on the damage to both the ITC and other US government agencies.

If a review was made, penalty rates on Thai shrimp imports to the US could potentially be cut.

Duties now include a 5.95% duty against all Thai shrimp imports, plus penalties imposed against individual Thai exporters ranging from 5.29-6.82%.

Somsak Paneetatyasai, president of the Thai Shrimp Association, said he hoped that the US would assist Thai farmers by removing the anti-dumping duties.

''It's good that the Americans have come to see the damage themselves,'' said Mr Somsak, who accompanied Mr Delaney in the tour yesterday.

Local shrimp farmers along the Andaman sea meanwhile complain that state financial aid has been insufficient at just 20,000 baht per person.

Taweesub Chuayjun, who operates shrimp hatchery farms in Khao Lak district in Phangnga, said with such limited assistance, it would be difficult for any farmer to rebuild his business.

''The aid should at least have been the same as given to fishermen who suffered, at 100,000 baht each,'' he said.

Mr Taweesub, who lost over 100 hatchery ponds from the tsunami, said banks were also imposing stringent conditions on borrowers seeking financial assistance.

''The government is paying much less attention to the shrimp business, at least when compared with tourism,'' he said.

His partner, Chatree Srikosol, said affected farmers needed funds to restock their ponds if they were to resume operations.

He said the government should consider that hatcheries were a key upstream element of the entire shrimp export industry, which generated revenues of 75-80 billion baht each year.

Surachai Suntorntip, owner of the S.P.T Farm, a shrimp farm in Sapam Bay in Phuket, echoed these sentiments.

Mr Surachai said he lost shrimp from 15 ponds in the tsunami disaster, and that the industry now suffered shortages of post-larva to raise as shrimp.

Shrimp output is way down while market prices for white shrimp are up to 150 baht per kilogramme for 50 heads/kg, compared to 120 baht before the tsunami.

But Fisheries Department officials said that current assistance was just the first step, and that additional measures were being planned.

Siri Tookwinas, a department official, said the plan, which has yet to be approved by the cabinet, would include a debt suspension programme and technical and financial assistance.

The Fisheries Department had issued a preliminary damage estimate for the shrimp industry of 14.8 billion baht from the tsunami, excluding opportunity losses.

Bangkok Post

WORANUJ MANEERUNGSEE & PHUSADEE ARUNMAS