Guarantee prices for the second rice crop have been tentatively set at 12,000 baht per tonne of paddy, said Commerce Minister Pornthiva Nakasai on Tuesday.

She said the National Rice Policy Committee would make a final decision at a meeting on Thursday.

The 12,000-baht price is in line with proposals by farm groups. The government expects to spend 36 billion baht for up to 2.5 million tonnes of paddy from March 16 to July 31.

Exporters warn that high guarantee prices would jeopardise the industry, as international prices have fallen sharply due to the global crisis.

The Thai Rice Exporters Association on Tuesday set the benchmark price of 100% grade-B white rice at $634 a tonne compared with $631 last week. The price averaged $567 a tonne in March 2008.

The price of 25% white rice is $487 a tonne, compared with $485 a week earlier and $540 last year.

Source: Bangkok Post