As the world's largest rice exporting area, Asean should focus on three key areas of cooperation - networking among millers, the trading system and the elimination of trade barriers - to create mutual benefits and sustainable prices in the long run, a regional meeting was told yesterday.

"So far, the most important problem for rice trade in the region is the practice of price cutting, which directly affects farmers," said Commerce Minister Porntiva Nakasai.

At the meeting of the Asean Rice Millers Association hosted by the Thai Rice Millers Association in Bangkok, Asean millers agreed to seek closer collaboration aimed at strengthening their bargaining power in the world market.

 Asean is by far the world's biggest rice supplier, with 65 per cent of global trading. Production is mainly from Thailand, Vietnam, Cambodia and Burma. The regional grouping has a combined rice stock of more than 9 million tonnes.

Yanyong Phuangrach, permanent secretary at the Commerce Ministry, said the three core cooperation areas of miller networking, the trading system and trade barrier elimination would enable Asean to have a better trading standard and system that would do away with the need for price dumping.

Successful implementation would ease the problem of fluctuating prices for farmers and ensure the region's food security.

"Rice tariffs have been eliminated under the Asean Free Trade Agreement. However, each country still has nontariff barriers to hamper the free flow of lower quality rice grains. Thailand is also considering zoning rice milling, for imported paddy rice from Asean to be polished here," said Yanyong.

Charnchai Rakthananon, president of the Thai Rice Millers Association, said Asean must cooperate in setting fair selling prices based on production costs.

Member countries have similar rice farming costs, he said, adding that they should therefore start to join hands in setting up appropriate median prices as such a move would solve the problem of price cutting.

Vichai Sriprasert, honorary president of the association, said rice trading was currently on a downtrend, with exports by Thailand and Vietnam having dropped 8 per cent in the first half of the year.

Thai rice exports came in at 4.8 million tonnes in the period.

Source: The Nation