The Commerce ministry will move forward with its price guarantee program, which will replace its rice pledging scheme, as the new plan has been deemed to provide more benefit to farmers and to reduce government's burden.

Yanyong Phuangrach, Director-general of the Internal Trade Department revealed that the government is going ahead with its price guarantee scheme for rice, although farmers have condemned the program, saying they want the government to resume the pledging program.

He said that the ministry, along with the Bank of Agriculture and Agricultural Cooperative, will have to clarify to farmers how the new price guarantee program works by providing more information and outlining the benefits they will receive from the scheme.

In addition, Yanyong said that the ministry has agreed to propose 7 measures to National Rice Committee in order to deal with the rice price.

He said that the 7 measures will be implemented after the government's official announcement of their price guarantee program.

The first measure will allow the rice mills to get low-interest loans to buy rice at market prices, while at the same time the government will encourage Public Warehouse Organizations, Marketing Organizations for Farmers and Agricultural Cooperatives to buy rice from for government stock at the appropriate time.

Also, the pledging program will be partly utilized with Jasmine rice in order to encourage farmers to keep rice in their barns, while the government stimulates rice exports to be competitive in the market as well as induces exporters to focus on rice exports.

Yanyong added that the government will establish a rice market in each part of the country to prohibit middle men from purchasing rice from farmers. He also said that the government will enact a policy to increase the rice export stock to more than 500 tons to encourage exporters to buy and keep more rice in their reserves.

He said that the measures will support the government's price guarantee program and will stimulate the price of rice in the market.

Source: TANN