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Published on March 26, 2008

Rice, the staple food of Thais, may soon cost more as the Thai Rice Packers' Association plans to seek permission from the Commerce Ministry to increase the retail price by 10 per cent next month.

The price rise is to offset increasing production costs as the price in the world market has surged sharply this year because of shortages and high demand, Somroek Tangpiroonthum, president of the association, said.

"Last year, we [rice packers] bought one kilo of rice at Bt11, but now the cost has gone up to Bt18.5 per kilo because of rising export prices," he said.

According to the Rice Exporters' Association, the export price for 5 per cent white rice rose sharply from US$359 (Bt11,235) per tonne last year to $544 per tonne in March. The price of jasmine rice was up from $619 to $771 per tonne.

The rice packs are under the price control products of the Internal Trade Department, which needs approval for price increases.

If their proposal is approved, the price of domestic white rice will go up to Bt100 from Bt90 per 5-kilo pack, and Jasmine rice will be Bt140-150 from Bt130-140 per pack.

Somroek said the government must approve the price hike as production costs have surged but rice packers are having to sell at the former price.

To help low-income people, he suggested the government release some 2 million tonnes of rice in its stockpile by packing rice in small bags to sell directly to consumers.

The Commerce Ministry is also considering selling its rice stockpile of 2.1 million tonnes in the domestic market. The plan aims to alleviate the high cost of living.

Commerce Minister Mingkwan Sangsuwan said yesterday that the ministry would put the rice stock in five-kilo bags. It would consider selling it cheaper than the market price.

He said the ministry would announce its rice policy to establish fair practices for all, including farmers, consumers and exporters.

The Rice Exporters' Association reported on March 19 that a tonne of jasmine rice was quoted at $862, 100-per-cent B grade white rice at $580, 25-per-cent white rice at $548, sticky rice at $580 and parboiled rice at $612.

Domestic rice prices have also increased in line with export prices.

Petchanet Pratruangkrai

The Nation