The Internal Trade Department is following up on the purchase of onions from farmers by business operators in Chiang Mai, reporting consistently good prices.
Goranij Nonejuie, deputy director-general of the department, said the agency paid a field visit to follow up on the onion purchases by business operators in Chiang Mai under a memorandum of understanding signed last month.
He said farmers reported higher prices for their onions, rising from 30,000 baht per rai to 60,000-70,000 baht per rai.
Production of root crops is estimated at 231,608 tonnes this year, down by 8% from 2023, according to the department.
The main onion production areas are in Chiang Mai, Chiang Rai and Mae Hong Son, while red onions are grown in Si Sa Ket, Chiang Mai and Uttaradit. Garlic is produced in Chiang Mai and Mae Hong Son.
Roughly 25% of onion production in Chiang Mai is distributed to the market, with more expected in the coming weeks thanks to favourable weather conditions (no rain and hail).
As a result, the produce is high quality and can be stored for a longer time and sold at higher prices, said Mr Goranij.
Onion production in Chiang Mai is expected to peak this month, as the department has coordinated with business operators to purchase 30,175 tonnes of root crops via contract farming, consisting of 14,475 tonnes of red onions, 7,500 tonnes of onions and 8,200 tonnes of garlic.
He said the contract farming involved 21 farmer groups spanning four provinces, 17 districts and 32 tambons.
"The produce will be distributed to processing factories, wholesale and retail stores, local department stores and petrol stations, including mobile commercial vehicles," said Mr Goranij.
The department ordered Chiang Mai commercial offices to closely monitor crop prices, adding the department is confident contract farming will ensure stable prices and distribution throughout the season.
This year the department plans to gather business operators from central and provincial areas to purchase produce from the start of the harvest season, leading to increased competition and thus higher prices, he said.