The Internal Trade Department is pushing for greater flexibility over the release of rice from the government's stockpile by granting the Rice Policy Committee the mandate to decide how the stock is distributed.
Previously, the decision to release rice from the stockpile rested with the cabinet, said Vatchari Vimooktayon, director-general of Internal Trade Department.
The cabinet takes too much time over deciding what to do with the stockpile and it cannot keep up with the volatile rice prices of the grain which have a direct impact on domestic rice and paddy prices, according to the department, which acts as the secretariat to the Rice Policy Committee.
Once the cabinet makes a decision, the news would be recognised worldwide, allowing international buyers to influence the prices.
With the rice cultivating season approaching, the government has to manage its 5.6-million-tonne stock in advance, she said.
Ms Vatchari said the government should help boost rice exports so they can compete with domestic rice purchases to help shore up paddy prices.
The government will continue to release its stock through a bidding process which allows for price negotiations, she said.
The government will also continue with its direct purchase of paddy from farmers through 150 points nationwide. It has already bought 142,000 tonnes of paddy.
The current price for white rice paddy with a 15% moisture content is 7,600 to 8,200 baht a tonne.
The committee will soon hold a meeting about the new crop option scheme, which farmers can start to register for this month.
Cultivation has been delayed until August due to drought.
The committee will also consider whether to increase the ceiling for eligibility for the scheme above the current 25 tonnes of paddy per family as its statistics show 20% of farmers are producing more than 25 tonnes of paddy.
Source: Bangkok Post
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