PHUSADEE ARUNMAS

The government has been urged to do more to support alternative energy projects to help people cope with skyrocketing oil prices. Authorities have yet to give full support to alternative energy although Thailand is blessed with abundant raw materials such as tapioca, sugarcane and oil palm, said Ajva Taulananda, vice-chairman of the Charoen Pokphand Group, the country's biggest agribusiness.

Mr Ajva noted that countries such as the United States and Brazil had already succeeded in producing sugarcane-derived ethanol on a large enough scale to meet significant energy demand.

''We want the government to do more to support alternative-energy projects, especially now, when rising oil prices have driven up the prices of agricultural products,'' said Mr Ajva. ''Now that farm prices have increased, the government should also think about passing regulations or implementing measures to ensure a fair share of the benefits for farmers.''

The areas that need regulation and improvements are the production chains of agricultural products, cultivation land procedures, funding assistance, and research, according to Mr Ajva.

''We could turn this crisis into an opportunity if we are able to apply new academic information and agricultural technology to the sector,'' said Mr Ajva.

The CP executive hailed the government's 300-billion-baht irrigation development programme and a 400- billion-baht project to divert water from the Mekong river to the water-starved northeastern region of the country.

But he noted that after being announced, those plans should be substantiated and effectively implemented.

Other CP executives also called for the government to act as a bridge in transferring know-how and technology from large operators to small-scale farmers.

Discussing sky-high oil prices, which have increasingly affected consumers' cost of living and manufacturers' production costs, Mr Ajva said the government should give up all attempts to keep oil prices low.''The [price-control] measures are useless, as they do not reflect the real costs of the manufacturers. What the government should focus on instead is increasing people's incomes to help alleviate their hardships.''

For its part, CP has recently raised the salaries for its employees by between 1,500 and 3,000 baht a month, depending on their positions and education levels.

In face of the runaway oil prices, Mr Ajva also expressed concern about inflationary pressure, expecting the rate to reach 8% this month after 7.6% in May. As a result, the inflation rate for the entire year was likely to exceed 6%, he said.

By Bangkok Post On 11 June 2008

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