This is a result of the subcommittee considering the fiscal-2011 budget having recommended the government slash Bt130 million from the Commerce Ministry's FTA Fund.

Permanent secretary Yanyong Phuangrach yesterday said farmers and manufacturers would face difficulty in increasing their competitiveness without support from the FTA Fund.

The ministry will therefore soon appeal for the subcommittee to reconsider its recommendation, so that Thai enterprises can enhance their competitiveness in a liberalised trade environment.

Yanyong said financial support should help develop business growth, because enterprises would manage the funding to develop their products and services.

All businesses should be facilitated to cope with the post-liberalisation scenario, he said, adding that without budgetary support, they would face trouble in developing their businesses as competition intensified.

The FTA Fund was established in May 2007 to help develop the competitiveness of agricultural and industrial businesses that would face tough competition under FTAs.

The fund currently has Bt31 million in its coffers, but another 11 projects are awaiting financial support, including two for rice-farming development, and one each for raw leather, oranges, lychees, herbs, cosmetics, tea, dairy milk and engineering services.

Enterprises in these sectors have asked for a combined Bt250 million in financial support.

Since the fund's inception, Bt181 million has been allocated for 24 projects. These include establishing electronic and electrical-appliance standards, increasing the efficiency of leather-goods manufacturing, developing food sanitation standards for powdered fish, increasing orange-planting efficiency in Chiang Mai province, increasing the number of staff in the pharmaceutical industry, boosting beef-cow feed competitiveness, campaigning for more beef consumption in Thailand and boosting the freshwater-fish industry.