Rice prices may disappoint

Written by changthai11 on Tuesday, October 7th, 2008

AGRICULTURE

CHATRUDEE THEPARAT

Farmers who hope to obtain high prices in the next round of government rice purchases may be disappointed, as Prime Minister Somchai Wongsawat has acknowledged that the pledging prices should reflect current world prices.

Mr Somchai said yesterday that the government would announce details of the pledging programme shortly.

Deputy Prime Minister Olarn Chaipravat affirmed that the government was committed to going ahead with the pledging scheme to help enable farmers to enjoy reasonable prices.

But he suggested that the prices should reflect the present situation of the rice market, in which prices have fallen from records achieved in April. Pricing pressure is mounting as a massive global supply is anticipated this year.

A meeting chaired by Mr Somchai yesterday approved the Commerce Ministry’s proposal to accelerate sales of 2.1 million tonnes of milled rice and another 3.96 million tonnes of paddy bought under the pledging scheme for the second crop that ended on Sept 30.

The government said recently that it aimed to buy eight million tonnes of paddy from the main 2008-09 crop to be harvested from November in an attempt to prop up prices.

The buying would start from Oct 15 and run until Feb 28, but the Commerce Ministry said yesterday it might have to put off purchases as the Finance Ministry had not yet given it any budget support.

Under proposals made earlier, farmers were to be paid 14,000 baht per tonne of paddy of 15% moisture from the main crop, with Thai Hom Mali jasmine paddy at 16,000 baht and glutinous paddy at about 9,000 baht per tonne.

But current prices are only 10,500 baht for paddy, with Thai Hom Mali jasmine paddy at 12,000 baht and glutinous rice at 6,000 baht.

Commerce Minister Chaiya Sasomsab insisted yesterday the pledging price for the main crop should not be below 14,000 baht, as the prices of the government’s existing stockpile would be affected.