The Commerce Ministry's Foreign Trade Department will propose measures to reduce a possible impact of opening up the rice market early next year.

The Foreign Trade Department will propose measures to ease a possible impact after the Thai government agreed to open up its rice market to foreign traders under the ASEAN Free Trade Agreement, or AFTA, which will go into effect on January 1, 2010. The proposal will be submitted to the National Rice Policy Committee for approval.

The department's director general, Chutima Boonyaprapat, said rice importers will be required to register with the Business Development Department and the Internal Trade Department. They must also pass a standard and quality inspection and submit information, such as import plans and schedules.

She added that manufacturers must clearly state on their labels if any products are made from imported rice.

Chutima said that her agency will seek the Cabinet's approval for the proposed measures before the rice free trade takes effect.

She added that since all imported rice is of lower quality than Thai rice, it should not affect local consumption. Besides, she said rice will be imported in keeping up with demand.

Regarding the progress of distribution of farm products in the government's stockpiles, the Foreign Trade Department director general said the government has lowered its corn stock from nealy 1 million tons to 300,000 tons and tapioca stock from 2 million tons to 1 million tons.

She expected that the farm products will be released without trouble due to strong demand for alternative energy production and industrial usage. She added that the government has opened an auction for 600,000 tons of rice via the agricultural futures exchange while the distribution for the remaining rice stockpile totaling more than 3.4 million tons is under consideration.

Source: TANN