To shore up the domestic rice price and farmers' income, the government yesterday hiked its compensation to rice growers from Bt926 to Bt1,282 per tonne.

The increase was made effective as of last Monday, said Yanyong Phuangrach, permanent secretary of the Commerce Ministry.

Under the government's income guarantee policy, farmers will receive the difference between the guaranteed price of Bt10,000 a tonne and the reference price. The market price has fallen gradually since last month, so the government had to lower the reference price to ensure that farmers would not suffer.

The reference price for this week is set at Bt8,718 a tonne, down from last week's Bt9,074. The current market price for paddy white rice is quoted at Bt8,700Bt9,100 a tonne.

The Thai Rice Millers Association had called for the government to increase its payment to millers for storing rice from Bt55 to Bt75 a tonne, as they are facing higher interest and operating expenses.

Yesterday the government approved that request.

Kriengsak Tapnanont, the asso?ciation's secretarygeneral, said millers also want the government to tell them how long it will keep rice in their warehouses.

Rice millers, which allow the government to rent their warehouses to stock its rice inventory, need to know the exact period for stocking so that they can manage their business, he said.

The ministry's Internal Trade Department will today meet with modern traders and consumer goods manufacturers to call for their cooperation in maintaining business as usual during the redshirt demonstration this week.

Director general Chutima Bunyapraphasara said the department would closely monitor price movements during this tense period to ensure fairness for consumers.

It will also inspect traders' stocks to prevent hoarding and price speculation.

Source: The Nation