The government may need to urgently review its intervention methods as the price of rice continues to tumble, hitting the lowest level in a year.

The Thai Rice Farmers Association yesterday submitted a letter to Prime Minister's Secretary-General Korbsak Sabhavasu, and Commerce Minister Porntiva Nakasai asking for help to shore up the price.

Prasith Boonchuey, the association's president, said that paddy rice price had fallen from Bt5,800-Bt6,300 a tonne for 25 per cent humid, to Bt4, 800-Bt5,500 a tonne this week. Farmers have been severely affected by the steep fall.

He said that farmers are facing difficulty in selling their rice as Thai traders have full stockpiles due to the sluggish demand in the world market.

"The government should urgently review its price-guarantee measure as it may not be efficient enough to shore up the price in the current scenario, said Prasith.

Commerce Minister Porntiva Nakasai said the government will soon seek additional measures to help shore up the price.

The ministry has also asked Prime Minister Abhisit Vejjajiva to call the National Rice Policy Committee meeting within this week to announcing additional measures to increase the price in the market.

Korbsook Iamsuree, president of the Thai Rice Exporters Association, said that the price had fallen gradually due to lower demand in importing countries and good cereal production in the European Union and Africa regions.

Moreover, India and the Philippines, which are the world's major rice consumers have full stockpiles this year.

She said that domestic rice price is expected to remain low in the next few months as exporters are unlikely to make purchases for exports.

The association reported that the export price of Thai rice has dropped continuously since early this year. Yesterday, 5-per-cent white rice was quoted at US$478 (Bt15,400) a tonne, down from $451 on April 7, while 100-per-cent white rice was traded at $482, dropping from $510 during the same period. Parboiled rice was selling for $466, falling from $510 a tonne.

Source: The Nation