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Published on March 3, 2008

Association president Chookiat Ophaswongse said the idea would slow the increase of domestic rice prices and also deal with the supply shortage.

Without any price guarantee, farmers holding rice stockpiles for speculation would have to release them.

Suspension of the programme would also save the government billions of baht each year.

Domestic rice prices have increased Bt300 to Bt400 per 100-kilogram sack, due mainly to a supply shortage. The continued rising price will prompt both domestic consumption and export problems.

Chookait suggests suspension of the measures for the 2008-2009 harvest. Farmers would not be affected thanks to increasing demand in the world market, he said.

"The government should consider resuming price-intervention measures when the domestic price is lower than Bt7,000 per tonne, a price at which they can make a profit," he said, adding that farmers costs were Bt5,500 per rai.

If the government wants to set high rice prices of Bt12,000 to Bt15,000 per tonne for white rice and jasmine rice respectively it would hit both local and export markets, he said.

He said high local rice prices reduced export competitiveness and consumers inevitably shouldered higher costs.

"The government should subsidise other areas such as energy and fertiliser which would reduce farmers' production costs," he said.

Petchanet Pratruangkrai

The Nation