Due to a delay in the delivery of rubber seedlings, Charoen Pokphand Seeds, a subsidiary of the CP Group, faces a loss in revenue of Bt400 million this year.

However, flourishing sales of other seeds, including rice and corn, will make up for some of the loss. The company's total revenue is forecast to reach Bt4 billion compared with its previous projection of Bt4.3 billion for the year.

Montri Congtrakultien, president and chief executive officer, said yesterday that the company was negotiating with the Agriculture Depart-ment to extend the delivery date for rubber seedlings from August 31 to June 30 next year.

If its attempt fails, the company will have to pay a fine of Bt7 million to the ministry for the delay. Negotia-tions will be concluded this month.

The company won a bid in 2003 to supply 90 million rubber seedlings worth Bt1.44 billion to the ministry. Under the agreement, it had from January 2004 until August 31 this year to meet its commitment.

So far, 73 million rubber seedlings have been delivered but recent flooding has led to the delay in delivery of the other 17 million.

The company also plans to expand its rice and corn-seed business in potential markets such as China, India and Burma by investing Bt350 million. Of the total, Bt200 million will be invested in eastern and northeastern China, Bt100 million in India and Bt50 million in Burma.

Charoen Pokphand Seeds has investments in India, China, Vietnam, Bangladesh and Burma.

To promote the seed business, the company plans to launch its new rice seed number '304' and '357', corn seed 'new 888', '888 Super', 'KKK' and a hybrid of palm seed in the domestic market next year.

Montri said the company's revenue was forecast to grow 10 per cent to Bt4.4 billion next year - 55 per cent from domestic seed sales, 30 per cent from overseas seed sales, and the rest from fruit exports. Net profit is likely to be 5 per cent of revenue. "Our core seed business and farm equipment have enjoyed excellent growth, which will compensate for the loss from rubber seedlings," he said.

Meanwhile, the Bt1.44-billion rubber-seedling tender project is facing investigation by the National Counter Corruption Commission, which is probing allegations the project was designed to benefit a large company which won the bidding.

Montri said the management had met commission members last week and given them more information.

"We declared that our bidding followed government policy and we did not get any benefits over and above other firms that joined the bid. We believe that our information will be enough to explain that this deal was fair," he added.

Somluck Srimalee

The Nation