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Published on April 25, 2008

Watcharapong Thongrung

The Nation

But Dr Nipon Paupong-sathorn, dean of Thammasat University's Faculty of Economics, said the government should neither interfere with market mechanisms nor curb exports. It should, instead, consider giving food coupons to the poor to subsidise their rice purchases.

Speaking at a seminar held by the Thai Rice Foundation under Royal Patronage, he said rice should remain expensive on the world market because supply was insufficient to meet rising demand.

He said the government should also support the grouping of small rice farmers and agro-industrial firms to boost yields and spend more on research and development.

Dr Somporn Issavilanont of Kasetsart University, said high farm commodity prices had resulted from bio-fuel policies in the US and European Union.

In addition, global rice stock had fallen to 60 million tonnes last year from 140 million tonnes in 2001.

Somporn said farm prices should remain in an up-trend at least for 3-5 years during which demand for bio-fuels is expected to remain strong.

Apiradee Tantaporn, director-general of Foreign Trade Department, said farm prices are undergoing structural changes so the ongoing up-trend is unlikely to be short-lived.

Thailand, the world's biggest rice exporter, should employ a strategy to benefit from the commodities boom, he said.