The government should implement a clear policy on development of local industry besides take measures to prevent the free flow of rice when Asean kicks off seamless trade early next year, exporters said yesterday.

They said import protection would not last long. The government must strengthen the rice industry to ensure its future competitiveness.

Vichai Sriprasert, honorary president of the Thai Rice Exporters Association, said to promote sustainable growth in the industry and higher income for farmers, the government should formulate plans to improve crop quality, yields and irrigation systems.

The Foreign Trade Department will enforce strict measures to stop low-quality rice from entering the Kingdom after Asean liberalises trade next year.

Under the Asean Free-Trade Agreement (Afta), duties on rice among members - with the exception of Malaysia - will be eliminated next January 1. Rice is now subject to a 5-per-cent import tax.

The government should be concerned not only about neighbouring countries flooding Thailand with their rice, but also Thailand's export markets, he said.

Some neighbouring countries do contract farming for foreign countries. They would prefer to send their harvests to those countries rather than to Thailand, which has its own high-volume production, he said.

In the future, the neighbouring countries may start producing superior-quality rice, thanks to technology transfers from foreigners.
The government should expand irrigation, introduce new technology and upgrade crop quality, in order to ensure future competitiveness, because market-protection measures alone are not enough, he said.

Low-quality imported rice would not be a threat to Thai rice, because importers can only use such rice for processing into flour or vermicelli, he said.

Banning low-quality rice from neighbouring countries should be only for a short period, as Thailand could not refuse to open its market, he said.

The Commerce Ministry will set up a committee on rice-import management under Afta to monitor rice imports.

Foreign Trade Department director-general Chutima Bunyapraphasara said the committee on National Rice Policy on Marketing, led by Commerce Minister Porntiva Nakasai, would soon call a meeting to consider the import measures in detail, in order to ensure fair and efficient management.

The ministry is confident it can implement the measures before rice-trade liberalisation takes effect next year. The measures will require Cabinet approval.

The framework includes stringent control of rice-importer qualifications. Rice importers must be rice processors registered with the Business Development, Foreign Trade, Industrial Works and Internal Trade departments.

The processors must have a clear objective for their rice imports and issue a certificate of origin for their products. They must have a traceability system to track each shipment.

The government will also put sanitary measures in place to keep out rice containing insecticide, plant disease or genetically modified organisms. The government may also designate a cross-border checkpoint to allow high standard rice to be brought into the Kingdom.

Source: The Nation