Profiteering feared with govt rice

Petchanet Pratruangkrai

The Nation, Bloomberg

"Some rice traders may take this chance to buy the government's cheaper rice and profit from the difference in prices," said Vattana Rattanawong, president of the Thai Rice Mills Association.

The millers fear the government rice will be made available at Bt72 per 5-kilogram bag versus the going rate of more than Bt100.

The Cabinet approved the Commerce Ministry's proposal to release 2.1 million tonnes of rice from the government's inventory to help consumers reeling from the skyrocketing price of the staple. The cheaper-price campaign will be kicked off next month.

Commerce Minister Mingkwan Sangsuwan yesterday said the ministry would release  jasmine rice, Pathum rice, provincial jasmine rice, 5-per-cent, 10-per-cent and 15-per-cent white rice, and 25-per-cent super-white rice for sale to the public. Mingkwan said the rice - to be bagged as "Thong Fa Mahachon" - would be 20 per cent cheaper than prevailing prices. The bags will be sold from May to December.

Vattana said millers were ready to join the government's plan to purchase paddy directly from farmers as the best way to help reduce costs for the government.

Meanwhile, the International Rice Research Institute reported that the world's rice producers must raise yields by 0.5 tonnes per hectare, or 12 per cent, by 2018 to fill the production shortfall and reduce poverty. About 700 million people, or 64 per cent of the 1.1 billion earning less than US$1 (Bt31.60) a day, live in rice-growing Asian countries, it said.