The government's plan to raise prices in the Thai rice market is expected to stall in light of intensified political unrest.

The proposal was supposed to be reviewed today by the national rice policy committee, which is chaired by Prime Minister Abhisit Vejjajiva. However, the meeting would definitely be put off because of mounting tensions in the capital, said Commerce Minister Porntiva Nakasai.

Deputy Prime Minister Trairong Suwankhiri is also unavailable to chair the meeting on the premier's behalf, as he has been assigned to attend the World Nuclear Conference this week in Washington, which Mr Abhisit skipped because of trouble at home.

The government aims to buy as much as 900,000 tonnes of paddy from farmers to raise prices in the local rice market. Price pressure on rice is expected to escalate as an estimated 1.8 million tonnes of rice from the second-crop season are being released to the market.

The measures will also include incentives for millers and exporters to buy more paddy from farmers to bolster domestic rice prices, which have fallen steadily in line with softening foreign demand.

Exporters and millers who participate in the buying programme may be allowed to exchange new paddy bought from farmers with milled rice from government stocks.

Millers and exporters might also be permitted to sell to the government milled rice processed from paddy they bought from farmers.

But the government will oblige millers and exporters to pay farmers more than the current market price for paddy. The rate should match the government's benchmark price, said the minister.

The government's benchmark price was set on Thursday at 9,087 baht a tonne, while market prices for paddy are from 8,500 to 8,600 baht per tonne.

These measures need prior approval from the national rice policy committee.

Mrs Porntiva said she had directed Yanyong Phuangrach, the permanent secretary for Commerce, to study how to hold the meeting of the committee as soon as possible.

She suggested the premier could designate the agriculture minister to chair the meeting so that efforts could move ahead to shore up paddy prices.

In any case, But Mrs Porntiva said political conflict was likely to delay the government's plans to stage roadshows at international markets to sell rice in government-to-government deals.

The roadshows were originally planned to take place between April and September.

Source: Bangkok Post