Since competition has become tougher over the past few years, the Commerce Ministry has drawn up a five-year national rice-trading strategy aimed at increasing exports by at least 20 per cent a year.

The plan, which was approved by the National Rice Policy Committee last week, will be implemented from 2011 to 2015 to coincide with the Agriculture and Cooperatives Ministry's strategy to make the quality of rice better.

Under the plan, the volume of rice exported by Thailand should reach an average of 8.5 million tonnes, worth between Bt4.4 billion and 4.95 billion per year.

The ministry's permanent secretary, Yanyong Phuangrach, said the plan was not focused on driving export volume, but was aimed at the price instead. He said that more revenue would be generated if the quality of rice exported becomes better.

"Rice will no longer be a common commodity, but will have added value so it does not just sustain the local export industry, but also the farmers," Yanyong said, adding that it should also not be hit easily by fluctuating prices, price-cutting practices, or supply and demand factors.

The plan will also promote the development of better, organic rice. In addition, the ministry is planning to hold roadshows in order to boost the consumption of rice among emerging countries. It hopes to increase the export value of jasmine, Pathum Thani, and parboiled rice by 20 per cent a year and white rice by 10 per cent a year.

 Laddawan Kunnoot, director of the Agriculture Ministry's Bureau of Rice Products Development, said the ministry would also focus on increasing the production of premium rice, now that people are becoming more health conscious
.
The ministry will encourage farmers to grow more good-quality crops by increasing yields and cutting down the cost, she said.

However, exporters say that the government should not just increase the value of rice, but also boost the production and quality, as well as make the price sustainable in the long run.

Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said that though Thailand was one of the leading exporters of rice, its trading and production abilities have developed far too slowly.

"Our production and trading capacity has remained unchanged, while our rivals have developed their production and trading system significantly," he said.

He pointed out that focusing on the value of rice was not enough, because consumers may opt for wheat, potatoes or corn if rice is far too costly. Therefore, the price should be stabilised so that trading in the grain is more sustainable.

 Chookiat added that many countries had joined the global rice-trading system, and consequently, Thailand's rice exports have been narrowed in terms of volume and value over the past few years.

Therefore, he said, just increasing the value of rice was not enough. The government should also develop rice production, keep costs competitive by concentrating on yield development, logistics and irrigation.

He added that the government should also allocate bigger budgets for research and development. At present, there's very little money put aside for the development of rice even though Thailand is the world's biggest exporter of this grain.

Source: The Nation