The Commerce Ministry will propose to the Prime Minister additional measures to maintain the stability of rice prices in the rice price guarantee scheme, and believes it will help the government reduce the amount of compensation paid to farmers.

The National Rice Policy Committee, led by Prime Minister Abhisit Vejjajiva, asked the commerce ministry to find additional measures to increase the stability of rice prices in the rice insurance program for the next rice harvest.

Permanent Secretary of Commerce Ministry Yanyong Phuangraj revealed that the sub-committee of the National Rice Policy Committee has considered 3 more measures to maintain rice price stability in the government's rice insurance scheme.

He said that the 3 measures are, the release of government rice stock to specific rice markets at the beginning of the rice production season, a plan for rice stockpiles in each village and a plan to educate farmers about the new rice insurance program.

Yanyong believes that the measures to maintain rice prices for 2009-2010 will reduce the amount spent by the government in compensation to farmers across country.

Moreover, the government needs to have a policy that will allow it to quickly release rice stocks when market prices drop lower than the insurance price, as now they are at 1,000 baht per tons.

The Commerce Minister, Pornthiva Nakasai said that the government has approved a budget of 1.85 billion baht to maintain rice prices.

Source: TANN