The Public Warehouse Organisation (PWO), a state-owned enterprise under the ministry, will be responsible for the bidding, which can be quoted in baht as well as US dollars. The PWO wants to form a state enterprise for marketing and will push its proposal with the new commerce minister.

The plan calls for the PWO to own 20 per cent of the joint venture, the Export-Import Bank of Thailand and PTT Plc to hold a combined 29 per cent and private companies to contribute the rest.

The ministry's deputy permanent secretary, Yanyong Phuangrach, said the new marketing firm should enhance accountability and transparency because all of its board members would come from the private sector. The Siam Cement Group, the Charoen Pokphand Group, Saha Pathanapibul Plc and Thai Beverage Co are expected to be private-sector shareholders.

Initially, a Bt500-million budget will be set aside to operate the unit.

Regional cooperation :Acmecs nations to work more closely

Members of the Ayayewady-Chaopraya-Mekong Economic Cooperation Strategy are stepping up contract-farming deals in the region in a bid to stabilise agricultural commodity prices.

Pinit Korsieporn, deputy secretary-general of the Agricultural Economics Office, said yesterday that the governments and private sectors of Burma, Laos, Cambodia, Vietnam and Thailand had agreed to develop more joint projects.

Members will publish a contract-farming handbook to improve understanding of how the concept works. The 10 commercial crops under the programme are sweet corn, maize, soybeans, green beans, peanuts, cashew nuts, castor-oil seeds, potatoes and eucalyptus wood.

The strategy is designed to ensure high prices and encourage farmers to concentrate on quality production, Pinit said.