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Published on February 22, 2008

The two countries will set export quotas for each, in order to ensure fair competition and maximise benefits for farmers from the current rising trend in world prices.

The global market situation has been reported as unusual, with demand high but supply from both countries low.

The Foreign Trade Department will hold a meeting with the Rice Exporters Association and the Vietnam Food Association in Bangkok next Wednesday.

If talks are successful, the rice price should be less volatile after climbing from Bt7,000 per tonnes last month to Bt8,200 this month.

The two countries will also focus on revising the rice-development plan that has been ignored since 2006.

Rice Exporters Association president Chookiat Ophaswongse on Wednesday said the meeting should come up with a concrete agreement to prop up prices, as exporters fear prices will plummet next quarter, when Vietnam's harvest enters the market.

The association said Vietnamese rice was priced US$30 to $60 (Bt975 to Bt1,950) below Thai rice.

The pact should help avoid price-cutting and lead to cooperation in raising rice-trading standards to make prices predictable and narrow the price gap between the two countries, he said.

Petchanet Pratruangkrai

The Nation