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Published on April 14, 2008

As the world's largest rice exporter and a net food producer, there has been no domestic shortage of rice, but many farmers now hope their harvests can generate more profit in line with the rising global rice price.

As a result, domestic consumers - particularly middle-class people with a fixed income - will soon be hurt by higher food expenses.

Ladda Suansoong, 53, a vendor at the Trok Mor fresh market across from the Interior Ministry, says she had to raise her prices for the first time in five years - from Bt5 for two cups of parboiled rice to Bt7.

Rice prices are reaching Bt340 per 15-kilogram tank for 5-per-cent white rice, and Bt450-Bt500 per tank for jasmine rice - from the previous lows of Bt160 and Bt220 respectively.

"Despite consumer complaints, I couldn't maintain my business if I didn't hike prices now," Ladda said.

Most of Ladda's customers have a fixed salary so they complain about price increases.

Ladda is not sure why Thais have to pay more for rice as the country has long been the world's biggest exporter.

"I'm just a small retailer so I don't know about the government's policy on rice, but I could feel that it's more difficult to make ends meet for the common folks."

Ladda has been a food vendor for more than 15 years, steaming up 45 kilos of rice a day, but she has no surplus fund to stock up rice for a long period to avoid the unrelenting price rises.

Usaporn Lapphonepoon-tawee, another food retailer in Bangkok's Phra Nakhon district, said she had to increase the price of plain rice from Bt5 to Bt7 per plate this month as costs have climbed.

Last month, she only had to pay Bt990 per 50-kilo sack, but that soared to Bt1,100 in only one month.

"Some consumers understand why the price has increased, but they still grumble that they have to face a burden passed on by the sellers," she said.

Since low-income people are now having a tough time economically, she wants the government to help by controlling the domestic rice price.

Another food vendor in Nonthaburi province said his kiosk had to keep prices unchanged to keep customers, despite the higher cost of rice supplies.

"I don't know what the government is doing about the economy, but as a poor person I would like the government to take care of my plight. The government shouldn't just serve the rich, who are shareholders of large companies, or the farmers to win popular votes," he said.

Many Thais have also been confused about frequent policy changes as far as rice is concerned and hope that the interest of all stakeholders will be served.

Unfortunately, the plight of low-income consumers and small food vendors was hardly the focus of the Commerce Ministry's last meeting on the rice issue.

Petchanet Pratruangkrai

The Nation