The National Rice Policy Committee plans to launch special low-price packs aimed at helping consumers stymied by rising retail prices stemming from a supply shortage.

The retail price for a 5-kilogram pack of rice has increased by Bt10 to Bt20 recently, adding to consumers' burden amid an already poor economy.

Rice traders and exporters are finding it difficult to buy from the market, because the government has 6 million tonnes squirreled away.

"These low-price rice packs are a strategy for reducing the government's huge stockpile, but one that's aimed at protecting consumers rather than directly competing with rice traders," Foreign Trade Department director-general Chutima Bunyapraphasara said yesterday.

The Commerce Ministry will order its marketing arm, the Public Warehouse Organi-sation, to run the project.
Internal Trade Department director-general Yangyong Phuangrach admitted the retail price of rice packs had increased recently in line with rising costs.

The department will closely monitor retail prices. If any unfair prices are found, a meeting will be called with the rice packers.

Chia Meng Marketing, a major distributor of bagged rice, will raise its Hong Thong brand by Bt10 to Bt20 next month, due to tight rice supply stemming from the government's stockpile.

Managing director Wallop Manatanya said the government's pledging programme to support rice prices had harmed market mechanisms. Since 1 million tonnes of the government stocks is jasmine rice, this has raised the retail price of a 5kg bag Bt10 since last month, and it could increase another Bt10 to Bt20 next month.

Thai Rice Packers Association president Somroek Tangpiroonthum said if the government delayed releasing its stocks, rice packs would continue to increase in price.

"Rice traders, packers and exporters are all competing to purchase rice from the market, which is pushing up prices and causing a serious supply shortage," he said.

Somroek also said modern trade operators had also marked up their profit from rice packs, from 4-6 per cent before to 10 per cent.

Source: The Nation