The authorities will revamp the Thai jasmine rice export standard into more grades in order to ensure export growth, following the loss of market share to other fragrant rice exporting nations due to the Kingdom's high prices.

At the "World Rice Standard Summit 2011" yesterday, government officials and traders agreed that the Kingdom needed to revise the export standard of jasmine rice if it wanted to boost exports at a time when the fragile global economy had led to lower purchasing power.

Commerce Ministry permanent secretary Yanyong Phuangrach said a new export standard would be drawn up to increase both the trading value and volume of Thai jasmine rice.

It will better serve the differing needs of consumers between export markets. Some markets may prefer a highquality grade of jasmine rice regardless of the price, while others will go for lower grades and bargain over price due to consumers' lower purchasing power.

Under the planned revision, Thai jasmine rice is being classified into four grades: 95percent jasmine rice, which is the highest premium grade, followed by 92percent, 80percent and 70percent jasminerice grains.

Each grade will be labelled differently. For example, 92percent jasmine rice will use the gold label, while the 95percent grade will have a diamond label.

Currently, the Foreign Trade Department only allows the export of premiumgrade jasmine rice, which is 92percent jasmine rice combined with 8 per cent of other rice grains.

The longrunning Thai jasminerice standard, introduced in 1973, has created difficulties for export competitiveness. Thailand has lost market share to Vietnam and Cambodia, who both have lower prices for fragrant rice.

Exported Thai jasmine rice is currently quoted at US$1,006 (Bt30,650) a tonne, while Vietnamese fragrant price is quoted at $670 a tonne.

Korbsook Iamsuri, president of the Thai Rice Exporters Association, said she supported the government's classification of more export grades to include 70 and 80percent jasmine rice, as it would enable exporters to compete more effectively.

However, she expressed concern that the upgrading of premium jasmine rice to 95 per cent would create difficulties for exporters, being a very high standard to achieve.

To promote jasminerice marketing, Korbsook said the export standard of 95 per cent should be voluntarybased, with the government guaranteeing the certification of such rice.

Prasert Golsalvitra, directorgeneral of the Rice Department, said the government would not only focus on revising the export standard, but also increase production quality for jasmine rice and other premium grades of rice in a bid to increase farmers' incomes.

Some highquality, premiumgrade rice could be promoted as GI (geographical identification) rice, as Thailand has varieties with a high nutrient value, he said.

Tng Ah Yiam, managing director of NTUC Fair Price Cooperative, which is Singapore's largest rice importer, said that as the price of Thai jasmine rice was too high, some consumers had shifted to the more competitively priced Vietnamese fragrant rice.

The setting of a variety of grades will create an alternative for middleincome consumers during a tough period in terms of economic growth.

The price gap between Thai and Vietnamese fragrant rice should not be larger than 20 per cent, otherwise consumers will opt for lowergrade, cheaper rice, he said.

He suggested Thailand might consider just a minor adjustment to its rice grading. However, he expressed concern that its prices may not be as low as expected, due to the cost of quality enhancement, and rising labour costs.

Thailand should also engage in clear marketing in order to communicate to consumers the differentiation of its jasminerice grading, he added.

Ken B, manager of Globe Gates, an exporter of Thai rice, said the introduction of more varieties in the export standard of Thai jasmine rice would be good for consumers.

However, the government must ensure that exporters are able to develop products in accordance with the new standard, as well as create clear differentiation for consumers.

Source: The Nation