State rice deals urged
PHUSADEE ARUNMAS

Rice millers are calling for government-to-government deals to prevent a fall in domestic rice prices.

The Thai Rice Millers Association will make the proposal to Commerce Minister Mingkwan Sangsuwan today.

Pramote Vanichanont, the association's honorary president, said the first step would be for Thai authorities to propose a government-to-government rice deal with Malaysia.

Malaysia intends to buy 500,000 tonnes of Thai rice, and the two countries agreed last week on 200,000 tonnes at market prices. Another 300,000 tonnes could be bought by June at market prices.

According to Mr Pramote, local rice prices are currently relatively volatile.

The price of 5% white rice was 2,700 baht per 100 kilogrammes on April 25 but declined to 2,250 baht as of May 6-9.

Mr Pramote said price pressure was anticipated as second-crop output, estimated at three million tonnes of paddy, enters the market until August.

''The market mechanism is not the answer for all situations.The government's assistance to help negotiate deals is also necessary,'' he said.

Prime Minister Samak Sundaravej said in Manila yesterday that he would discuss offering rice to the Philippines in a government-to-government deal if the subject was raised in talks.

Chookiat Ophaswongse, president of the Rice Exporters Association, said world demand remained strong despite price volatility. The price of 100% B grade white rice was $1,030-50 per tonne, up from $1,000 last week. It reached an all-time high of $1,080 in April.

By Bangkok Post On 23 May 2008

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