Jasmine rice, or khao hom mali, is a distinctive variety native to Thailand with superior aroma and taste. The government wants to boost export volumes of it and build consumer loyalty.

The government has drawn up a strategic plan to ship more jasmine rice to both traditional and new markets. The established importers are Hong Kong, Singapore, Malaysia and China while the target markets are Japan, the European Union and the US.

In the past five years jasmine rice has enjoyed high average prices both here and abroad, about US$250 (Bt10,000) a tonne locally and $318 for export.

However, increasing the price of the rice will prompt minor importing countries to turn to cheaper varieties. Non-Asian consumers may never get the chance to experience the special quality and taste of jasmine rice. Price is their greatest concern in choosing sources.

Of the seven million tonnes of rice that Thailand exports on average, jasmine accounts for 2.2 million tonnes, worth $699.6 million.

The government believes that increasing the price of jasmine rice will pull up other rice prices.

But rice-traders want to see the government adopt a policy of stabilising the rice price rather than trying to expand export value and volume. They thinks price stability is the long-run solution to the problem of price drops.

The traders are also afraid that buyers will panic at a hike in the price of jasmine rice and shift to other, cheaper grades and to suppliers in other countries. The Commerce Ministry recently launched a plan to make jasmine rice prominent in global awareness, directly boosting the Kingdom's exports and maintaining its prestige as the world's biggest rice-exporter.

Thailand, however, stands to lose new export markets that would buy jasmine rice for its flavour but balk at steeper prices. The government should decide whether to just keep major importing countries or to develop new ones.

Rachane Potjanasuntorn, director-general of the Foreign Trade Department, says the intensive promotional plan in both domestic and overseas markets should make jasmine rice one of the most popular products.

The ministry's promotions are channelled through print, TV and billboards, and the message is also targeting tourists.

Rachane said the ministry's strategic plan would not only increase demand but also push up the price.

"The government has no set target for the price of jasmine rice. We believe that the higher it is the better," he said.

Jasmine rice already fetches $492 per tonne on the world market, and the ministry hopes for $550.

The private sector has responded enthusiastically to the ministry's promotional plan, saying that differentiating jasmine rice from other countries' products will increase recognition of it internationally.

Supranee Suriwong, manager of the Patara restaurant, says both foreigners and local consumers prefer jasmine rice and care less about the price than about taste and quality.

Patara, part of a chain run by S&P Global Co Ltd, goes through about 200 kilograms of jasmine rice per month.

Pairoj Kludboobpha, manager of a restaurant in the Sofitel Silom hotel, said foreign guests paid little attention to price but expected rigid standards.

"The price is not a problem for high-end consumers and foreigners, but it must be pure jasmine rice," he said.

At Bt50 a plate, the hotel sells more than 500kg of jasmine rice a month.

Although jasmine rice will always do well in niche markets, if the price jumps too high, small and medium-sized restaurants will probably be hurt.

Kanyathanikthon Ruangrit, manager of the Rabeing Makhong restaurant and guesthouse, said the government should cap the price of jasmine rice at Bt15,000 a tonne, which would safeguard loyalty for the rice.

She said that despite its policy of offering only jasmine rice, the restaurant would immediately switch if jasmine cost too much or quality was diluted with a lower grade.

"We don't want to sell mixed rice or have to keep an eye on our expenses," she said.

The restaurant orders 300-400kg of jasmine rice a month.

Sutin Ongpattanakit, president of the Sahapattana Rice Mill, said the government should control the price at a suitable level.

"If the price is too high, some consumers will be unable to afford it and opt for other kinds of rice," he said.

Satit Tapwongsirirut, general manager of Settakit Global Trading, which owns a rice mill in Surin, said that too high a price for jasmine rice might dampen demand.

The government must convince

foreign consumers of the unique

characteristics of Thai jasmine rice before trying to increase its price, he said.