The Rice Exporters' Association yesterday called for the government to revamp the Kingdom's rice policy, in order to make the industry more stable and avoid distorting market-price mechanisms.

They said the government should pursue a short-term rice-pledging programme while devising a long-term sustainable development plan that would stabilise rice prices and benefit both farmers and traders.

The association's representatives met with Commerce Minister Krirkkrai Jirapaet at the association's offices yesterday. After the hour-and-a-half meeting, Krirk-krai said the ministry would try to find the best way to help both farmers and rice traders.

"I will not separate 'others, you or me', because rice is one of the Kingdom's key agricultural products. The government will try to help stabilise the rice price and seek a sustainable measure to help farmers," he said.

Krirkkrai also said the ministry would gradually release its stockpiles to help exporters, after a shortage was recently experienced in the market. The government has about 3.3 million tonnes of rice from the 2005-06 harvest in its stocks, a million tonnes of which is jasmine rice.

Krirkkrai said he would hold discussions with the Rice Policy Committee next week on setting a suitable price for this season's rice-pledging programme that will not hurt rice exporters.

For the 2005-06 rice-pledging programme, white rice was bought at Bt7,000 per tonne and jasmine rice at Bt10,000 per tonne.

Association president Chookiat Ophaswongse said the government had traditionally pegged prices at levels much higher than those fixed by the country's competitors.

"The policy has eroded Thailand's export competitiveness, because the intervention price has pulled the local price up higher than exporters' valuations," he said.

Currently, the Thai export price runs US$30 to $60 (Bt1,100 to Bt2,200) a tonne higher than that of Vietnam, the Kingdom's main competitor.

The price difference is considered acceptable, because Thai rice is considered better quality than Vietnamese rice.

However, Chookiat warned that if the price gap became too large, importers would stop buying Thai rice. He suggested the government purchase unprocessed paddy rice, which could be stored more easily and at less cost.

Vichai Sriprasert, honorary president of the association, suggested the government help farmers pay packing costs. He said the government should increase private-sector participation in the rice market while giving financial support directly to farmers.

Meanwhile, Prime Minister Surayud Chulanont and Krirkkrai will visit Indonesia tomorrow to discuss rice trading under a government-to-government project.

 Petchanet Pratruangkrai

 The Nation