Under the plan, farmers have been encouraged to focus more on selling polished rice instead of paddy rice.

Moreover, rice will not be sold in a traditional 100-kilogram sack any more but will come in a smaller, colourful package under the brand Khao Por Pieng (sufficiency rice).

BAAC president Thiraphong Tangthira-sunan said the project was designed to ensure that farmers will be freed from middlemen and traders and instead sell their rice directly to market.

The government will try to create an integrated "from farm to market" network through 74 Agricultural Marketing Cooperatives (AMCs) nationwide. The bank will provide knowledge in farm management, quality control and marketing to members.

AMCs will also manage other crops, depending on local production. The BAAC plans to gradually launch different marketing campaigns for AMCs in each province.

The pilot project has been launched in Surin, which is one of the best areas for growing jasmine rice, and farmers will only plant organic rice. Only AMCs with rice-polishing machines will be allowed to take part in order to ensure quality control.

Thiraponkg added that farmers will learn about His Majesty the King's philosophy of a  "sufficiency economy", quality control, pricing and marketing.

"The project will not only create more income for farmers but also encourage them to learn more about production quality and value-added management," he said.

 Thai Agribusiness (Tabco) will handle all marketing. The company is negotiating with Tops Supermarket, Tesco Lotus and Big C.

Initially, the project targets to sell 5,000 tonnes of rice, which will normally come in a five-kilogram bag at a price of Bt110. Tabco has introduced a smaller one-kilogram package for use as a New Year present.