BANGKOK: The Thai
government has launched a new programme to help its rice farmers. But
with Thailand being a world leading exporter of rice, critics said the
move could hurt the country's position.
For over 30 years, Thailand has been the world's biggest exporter of rice.
This
year alone, the country is expected to produce over 20 million tons of
it, despite rising competition from its regional rivals.
But that could change soon.
One
of the key policies of newly-elected Prime Minister Yingluck Shinawatra
is a rice pricing scheme, under which the government buys rice from the
farmers at a price of 15,000 baht (US$480) - 50 per cent more than the
regular market price.
What is primarily aimed to help Thailand's
eight million rice farmers could have broader implications on the
domestic and international markets.
It was one of the factors that helped the Puea Thai Party win the elections last July, thanks to its rural supporter base.
But according to critics, not all farmers will equally profit from this scheme.
Dr
Nipon Poapongsakorn, president of the Thailand Development and Research
Institute said: "Those farmers who have rice to sell to the government
benefit. But farmers and consumers, particularly farmers who do not have
rice to sell, do not benefit at all."
Dr Poapongsakorn explained
that farmers who do not produce rice for their own consumption will
have to buy the staple at a higher price.
Thailand's Commerce
Ministry has tried to calm fears of spiralling costs for both the market
and the taxpayer, saying the pricing scheme will cost much less than
the estimated US$12.8 billion.
But opponents see too many fault lines and much prefer the price guarantee scheme of the previous Democrat-led government.
Niphond
Wongtra-ngan, former president of the Thai Rice Millers Association
said: "Under the price guarantee programme (of the Democrat-led
government), money went to the farmers faster. The guaranteed price was
10,000 baht per ton. Should farmers sell rice at 6,000 to 7,000 baht,
they will get compensated."
Furthermore, private rice exporters
accuse the government of monopolising the rice trade, as collusion among
a few exporters close to the administration and price fixing could
occur.
Internationally, the pricing scheme will also cause ripple effects on the market.
Dr
Poapongsakorn said: "I expect that the world price of rice will
increase, because we are one of the major exporters... But who benefits?
Our competitors - not Thailand!"
After all, the consumer could be the one who ultimately pays the bill, as the price of rice is set to increase.
As for the farmers, it has yet to be seen if they will really benefit from the new pricing scheme.
from cna
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jialat. we are the biggest importer of thai rice right?
At one time there was a Eat More Wheat Campaign. We could have that again.