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| Govt Prepares for Rice Price Intervention |
| UPDATE : 14 May 2008 |
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The government has released a plan to intervene in the domestic rice market, using a budget of 42 billion baht.
Deputy Prime Minister and Commerce Minister Mingkwan Saengsuwan said the government will purchase jasmine rice from farmers at between 19,000 to 20,000 baht per ton, round-shaped rice at 14,000 baht per ton, and sticky rice at 9,000 baht per ton.
He said the rice moisture must remain at 15 per cent, and the state will purchase sticky rice at 7,000 baht per ton if it contains over 25 per cent moisture.
Today, Mingkwan will lift a ban on rice transportation between provinces, in order to allow farmers to sell their stock to all rice mills around the country. Tomorrow he will attend a meeting of the National Rice Policy Committee to design a funding plan for the state's rice procurement.
Subsequently, the government will purchase rice from growers without limit.
A report from the Thai Rice Mills Association revealed that there are three million tons of rice in farmers' hands and the yields will be released to the market from late this month until early July. Therefore, the government will have to spend a budget of 42 billion baht if it decides to acquire all the rice at 14,000 baht per ton.
Regarding the state intervening in the rice price, Thai Rice Exporters Association President Chukiat Opaswong said such a move will have only a psychological impact to pressure rice millers to purchase rice at high prices.
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