Thailand plans to team up with rice-producing countries in the region to set up rice-trading consortium to build up bargaining power and stabilise prices.

The consortium would involve members of the Ayeyawady-Chao Phraya-Mekong Economic Co-operation Strategy (Acmecs) group. It would seek ways to expand and strengthen the region's rice production base and food security and safety, Commerce Minister Porntiva Nakasai said yesterday in Bangkok on the sidelines of the 41st Asean Economic Ministers Meeting (AEM).

"Prime Minister Abhisit Vejjajiva has reiterated strongly that Thailand and Asean members have to take care of and protect their grains particularly to prevent exploitation by foreigners to take control of rice farming and arable lands," said Mrs Porntiva. "Once Asean has come up with a strong rice production base, the region would have greater bargaining power over rice buyers."

However, the minister expressed concern over a possible influx of low-quality grains from neighbouring countries after import tariffs on rice including paddy and other agricultural products are eliminated in January 2010.

She said the Thai Commerce and Agriculture ministries had worked out safeguards, notably stringent plant quarantine and sanitary standard measures.

The government also plans to encourage more local processing facilities using farm products imported from neighbouring countries prior to the Asean Free Trade Area (Afta) agreement on rice and other products taking effect.

Source: Bangkok Post