Thailand must soon consider whether to open up its rice market or put off eliminating tariffs under the Asean Free Trade Agreement early next year.

The Commerce Ministry will ask the National Rice Policy Committee to make a final decision soon about whether to commit to Afta's schedule for trade liberalisation in rice.

The ministry pointed out two major effects expected from liberalisation. First, a free flow of rice would cause quality-control problems, because different varieties of rice and rice seeds could enter the Kingdom.

Second, if Thailand withdrew from its zero-tariff commitment for rice, the country would lose its leadership role.

A source with a subcommittee of the National Rice Policy Committee yesterday said the committee, chaired by Prime Minister Abhisit Vejjajiva, must make a final decision about the commitment to Afta.

"A meeting has not yet been scheduled, but important agenda items will include not only making a decision on the matter, but also how to prevent a flood of low-quality rice from neighbouring countries from entering the Kingdom," the source said.

Under Afta, import duties on rice among members - except Malaysia - will be eliminated by next January 1. Rice is now subject to a 5-per-cent import tax. Thailand and other Asean members agreed in 1992 to liberalise agricultural products, including rice, but the rice industry awoke to the liberalisation only this year.

Thai Rice Exporters Association president Chookiat Ophaswongse said Thailand must commit to liberalisation of its rice trade with Asean.

"If the government breaks the agreement, it will damage the country's image. Instead, the government should find ways of protecting the rice-farming and -trading system," he said.

Chookiat complained the government was very slow to tackle this problem, as rice exporters first learned of the impending market liberalisation early this year.

He also expressed concern that imported rice might be mixed with genetically modified strains, due to a shortage of officials at the borders.

To prevent a flood of imported rice, the subcommittee will propose the government allow importation of only broken rice, which has the backing of rice-manufacturing industries.

Acting Commerce Ministry permanent secretary Yanyong Phuangrach said the government would propose the committee set up a rice farmers' fund designed to increase efficiency in growing.

In addition, the ministry will also accelerate the release of its huge stockpile via more government-to-government contracts.

A Commerce Ministry source said the government would approach the Philippine government about taking 100,000 tonnes of white rice. It also plans to export to Russia.

Source: The Nation