
The idea is to find a way to cushion the adverse effects of the fluctuating price of rice. It follows the model of the Organisation of Petroleum Exporting Countries (Opec).
In fact, there is a lesson to be learned from Adisai Bhodaramik's experience in attempting to form a similar cartel when he was commerce minister six years ago. Adisai then proposed holding an annual meeting of the same five nations in Thailand. The failure was largely due to an Indian minister's refusal. He said that India would not participate in any effort to form a cartel to set rice prices. India believed that the international community would not accept such a cartel because it would put the poor at risk of starvation, and thus make rice-exporting nations seem inhumane.
On April 27, Commerce Minister Mingkwan Sangsuwan dusted off the idea but Vietnam shot down the plan even before he officially proposed it to his counterparts. Over the past month, Pramote said the world saw the plan as going down the "devil's path" after rice-exporting countries decided to halt exports in what was taken to be a move to benefit from rising rice prices. This is despite the fact that these countries faced unforeseen problems. Vietnamese rice output was reduced due to plant disease. China faced drastic weather problems. Some other countries saw a reduction in rice plantations as farmers switched to alternative energy crops.
Pramote said that international agencies would naturally criticise the Orec plan and urge its countries to be compassionate.
He suggested that the countries that would have formed Orec should present the facts as well as the alternatives to the international community, emphasising that farmers in Asian rice-producing countries are still poor.
Despite the recent high price of rice, farmers face higher production costs, with oil, fertiliser and chemicals costing more, as well as unseen risks from natural disasters such as flooding, drought and disease. Many are in debt and lease their farms.
Would-be Orec countries should present an alternative by announcing standard costs of production for rice-farming and an appropriate rate of return for farmers. The rate may be calculated from the original source of production to the point at which the product enters the market.
An alternative must be found that ensures the survival of farmers, who account for the majority of the population.
Pramote said the fact remains that in order to ensure food security, everyone must accept that farmers must be able to survive in order to grow rice and feed the world's population.
Finally, rice-exporting countries should ask Opec to show its compassion for the world's starving and poor. This would provide proof that free trade comes with compassion and that globalisation can be achieved in a civilised manner.