rising farm incomes, low prices, high fiscal cost

The magazine wanted to get his thoughts on his argument that when oil prices started to skyrock¬et, the government should have increased publicservice salaries to match those of the private sector and should not have stepped in to hold prices at current levels, but should have allowed market mechanisms to take their natural course.

He said this would lead to high¬er produce prices and farmers' incomes would go up, their spend¬ing of which would benefit all.

Forbes Asia did not dwell on the details of the theory, but focused on Dhanin's views on how to main¬tain rice prices. In a paragraph, Dhanin said rice prices were intentionally low to benefit urban peo¬ple.

"Seventy to 80 per cent of Asia's population is engaged in agriculture. So, ending poverty in Asia must start with agricultural prices. In Thailand in particular, rice farmers are poor because the price of rice has been intentional¬ly kept low so that the urban population can consume inex¬pensive rice," he said.

However, some economists disagree.

It's easy to see that wins a lot of support because farmers can sell rice to the government at higherthanmarket rates.

It is interesting. Amid budget constraints, how will the government address this debt? Certainly, the amount is sufficient for the construction of a new electric train line or a highway.

But that's the government's problem.