The Industry Ministry next week will propose to the cabinet the second phase of a biochemical development plan to increase prices of farm products in provincial locations.
According to Industry Minister Uttama Savanayana, the pilot project will be concentrated in Khon Kaen, Nakhon Sawan and Kamphaeng Phet because the three provinces are important plantation sites for cassava and sugar cane.
The ministry expects the biochemical project in Khon Kaen to come with an investment cost of 29.07 billion baht, which includes a new biochemical industrial estate worth 20 billion baht to support a dry yeast and phytase enzyme production facility for animal feed.
"Mitr Phol Group is the leader for the biochemical project in Khon Kaen, while Betagro and CPF are interested in this project too," Mr Uttama said.
For Nakhon Sawan, the plan envisions an investment of 40 billion baht, led by Global Green Chemical Plc and Kaset Thai International Sugar Corporation Plc, in Nakornsawan Biocomplex, the country's first bioeconomic industrial complex, in Takhli district.
Mr Uttana said PTT Group, Mitsubishi Chemical Corporation and Sumitomo Chemical Thailand are also interested in the biochemical project in Nakhon Sawan.
For Kamphaeng Phet, Cristalla Co will invest 8 billion baht in a biochemical project. The government expects further investment of 2 billion baht from other parties during 2022-26.
The biochemical plan is a collaboration between the government and the private sector. There are two phases to the project: the first during 2017-21 and the second during 2022-26.
Investors in the biochemical project are eligible to apply for Board of Investment privileges.
Mr Uttama expects to attract 130 billion baht to biochemical projects by 2027, including both provincial locations and the government's Eastern Economic Corridor (EEC) in Chachoengsao, Chon Buri and Rayong.
The minister said the biochemical plan is under the bioeconomy scheme of the Pracha Rat (People's State) initiative, whereby the government will promote value-added agricultural products.
The government expects to increase the household income of local farmers by 85,000 baht annually over the next 10 years and generate value-added farm products worth 400 billion baht.
