Thai rice exporters are calling for the government to release some of its stockpile quickly, to relieve skyrocketing domestic prices and the worsening supply situation.

Thai Rice Exporters Association president Chookiat Ophaswongse said the government must consider releasing its huge rice stocks, in order to address the supply shortage in the domestic market and for export.

"Releasing stocks to rice exporters and domestic packers via bidding would be an efficient way of relieving rising prices," he said.

Thai consumers have been forced to shoulder the burden of higher retail rice prices because domestic traders and exporters have had to compete to purchase rice from the market.

The stocks should be released in small lots, so as to prevent the rice price from dropping, Chookiat said, adding that he did not agree with the government selling at a low price to the market at this time, because that would interfere with market mechanisms.

However, he does agree that a subcommittee of the National Rice Policy Committee should allocate 30,000 tonnes of rice from the government's stockpile to help people suffering from natural disasters.

The subcommittee has asked the government to sell rice for Bt1 a tonne to the Public Warehouse Organisation for distribution to those hit by disasters like flooding during the present monsoon season. The stocks could be distributed in packs of 4 kilograms.

Internal Trade Department director-general Yangyong Phuangrach said the department would call for cooperation from millers nationwide to increase supply for rice packers.

He said rice millers should still have some rice stocks stored away. Releasing them should help relieve skyrocketing domestic prices.

The Commerce Ministry today will also consider releasing some of the stockpiles via bidding, said Yangyong.

As another strategy for releasing the stockpiles, Commerce Minister Porntiva Nakasai said the ministry would ask for parliamentary approval to sell rice under government-to-government contracts.
Initial demand for such contracts |is estimated to be 1 million tonnes, she said.

Source: The Nation