The Hindu : Tamil Nadu / Madurai News : `Thailand can compete with India in food products'

Online edition of India's National Newspaper
Monday, Sep 27, 2004

Tamil Nadu

Tamil Nadu - Madurai

`Thailand can compete with India in food products'

By Our Staff Reporter

MADURAI, SEPT. 26. Thailand could compete with India in food products and garments, with its quality finished products and packaging, according to a two-member team of the Madurai District Tiny and Small Scale Industries Association (MADITSSIA), which was part of a 22-member delegation that visited Thailand recently.

Briefing presspersons here, the MADITSSIA president, S. Aravind, said the trip was organised by the ZDH (German Confederation of Small Business and Skilled Crafts), Germany. The other members of the delegation were from the Federation of Karnataka Chambers of Commerce and Industry, the South Indian Hosiery Manufacturers Association, Tiruppur, the Karur Textile Manufacturers and Exporters Association, the Association of Women Entrepreneurs of Karnataka, the Women in Business, Hubli and the Karnatak Chamber of Commerce, Hubli.

The purpose was to study business environment, industrial culture, trade policy and the government-industry relationship.

Like self-help groups in India, Thailand had OTOP (One Tambon (block or union)-One Product) was a big movement, promoted by the Royal Queen. The Government provided a one-time grant of 1 million Baht (one Baht is equal to Rs.1.10) to every village for promoting a particular product. The scheme, monitored by the village administrators, had benefited 70, 000 villages, said the MADITSSIA former president, TKR. Gnanasambandan, the other member of the team.

The products, manufactured under the OTOP, were of international standards, and were exported with packaging. Moreover, Thai Airways promoted the OTOP products and those manufactured by the small and medium enterprises by distributing them to its passengers. It also organised a visual presentation of the products. The Government helped these industries in marketing their products. An exclusive shopping mall was functioning in Bangkok and Chiang-mai, Mr. Gnanasambandan said.

Packaging always played an important role in marketing, and Thailand did well in that area, especially in the packaging of food products. Both low-and high-value products were given equal importance, and all products had bar coding.

Thailand was full of shopping malls and super markets. All the malls had two wings: one for branded products, not for bargaining; and the other for unbranded goods. Girls were dominating the marketing field: 70 per cent of the workers in the industries were women, he said.

The Thailand Government encouraged both public and private investments, while foreign direct investment (FDI) was welcome in large industries. The rate of interest floated by finance companies was as low as 3 per cent. The non-performing loans (Non-Performing Assets) were more than 12 per cent. There was a special bank to cater to the needs of small and medium enterprises, Mr. Aravind said.

More than 80 per cent of the power generated in Thailand was through the Compressed Natural Gas (CNG). Hence, the cost was cheaper than it was in India, and insulated cables were used for transmission. Power supply was stable and quality-driven, he said.

There were many industrial parks in Thailand developed both by the Government and the private sector. Many parks had their own power generation units. Every factory had a sales outlet to market its products. One of the major foreign exchange earners for Thailand was the tourism industry. It also created jobs. Thailand developed its own tourist spots to attract more tourists. The Government too played a role in protecting the interests of tourists, he said.

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