To protect against a flood of low-quality rice from Asean next year, Thailand will allow the import of only broken rice for use in manufacturing.

The National Rice Policy Committee made the decision last week, and the proposal will be put to the Cabinet soon to ensure that the government can put in place an action plan for implementing the measure.

Previously, the government had seemed likely to withdraw from its zero-tariff commitment if it could not find a measure to protect the rice sector from an influx from other Asean countries.

However, the government has since moved ahead with the commitment and turned its focus on control measures.

Asean members are obliged to open up the market for rice trading under the Asean Free Trade Agreement (Afta) by next year.

Vichak Visetnoi, acting director-general of the Foreign Trade Department, said the committee had agreed that the blocking of other rice grains into the nation was the best and fairest practice to prevent low-quality rice flooding into the Kingdom.

"The government will draw up an action plan as soon as the Cabinet approves the measure to prevent an influx of low-quality rice into the nation. A subcommittee on managing rice imports from other Asean countries will also be set up," said Vichak.

Only rice-product manufacturers will be able to import rice, with specific volumes declared to the government. Importers must have a clear objective for importing each rice stock from neighbouring countries, so that the government can ensure that imports are not combined with Thai rice grains.

The government is also drafting other import-control measures focusing on sanitary standards, rules of origin, pesticide use and quality contamination. It is also taking steps to ensure GMO (genetically modified organism) crops are excluded.

The Commerce Ministry has identified two major effects of trade liberalisation. First, a free flow of rice would cause a quality-control problem because different varieties of rice and rice seeds could enter the Kingdom.

Second, if the Kingdom withdrew from its trade commitment, the country would lose leadership and have to compensate other Asean member states.

Under Afta, import duties on rice traded among members - except Malaysia, Indonesia and the Philippines - will be eliminated on January 1. Rice is currently subject to a 5-per-cent tariff among the majority of member states.

Thailand and other Asean members agreed in 1992 to liberalise agricultural products.

The Philippines has categorised rice as a highly sensitive good, and committed to reduce its import duty from 40 per cent to 35 per cent by 2015. Malaysia will reduce its import tariff to 20 per cent next year, while Indonesia will cut its rice tariff to 25 per cent.

In addition, the National Rice Policy Committee approved the establishment of a Thai Farmers Development Fund to help rice farmers develop their productivity and quality.

Source: The Nation