The Thai government should buy another 1.5 million tonnes of rice under its intervention scheme that ends in July, farmers said on Thursday, and traders said they expected the government to comply for political reasons

"I'm afraid that the government's target to buy 2.5 million tonnes of rice may not be enough to help support domestic prices," said Prasit Boonchuey, president of the Thai Farmers Association.

"We will ask the government soon to buy 1-1.5 million tonnes more," he added.

The government has bought around 1 million tonnes of paddy from farmers in its latest buying scheme from mid-March, 40 percent of the 2.5 million it aimed to buy, an official at the Ministry of Agriculture said.

It is paying farmers 11,800 baht ($334) per tonne for paddy. It also held 5.2 million tonnes of paddy bought from farmers in the previous programme that ended in November, when it paid farmers 12,000 baht per tonne, the official said.

Traders and exporters said they expected the government to agree to buy more eventually, in order to pre-empt protest movements at a delicate time, following violent anti-government protests in the capital.

"At this moment, I think the government should not trigger any anger, especially among farmers," one exporters said.

However, some exporters said any additional government intervention buying would simply add to the downward pressure on export prices, because foreign buyers would see that stocks were rising and wait for an inevitable fall in price before buying.

Farmers' leaders have been in contact with the government, but ministries are still on holiday, with the three-day Thai New Year holiday extended until the end of the week to allow the government to restore law and order after the protests.

With many people enjoying the extended holiday, trading in Thai rice was sluggish on Thursday, and benchmark 100 percent B grade white rice was quoted at $550 per tonne, traders said, unchanged from last week. ($1=35.38 Baht)

Source: Bangkok Post