The Thai Rice Exporters' Association will soon submit a letter to the Commerce Ministry calling for fair treatment in the release of rice stocks after the government quietly released 1 million tonnes to only a few buyers.

Association president Korbsook Iamsuree said many exporters felt they were treated unfairly, as most of them were unaware about the government plan to release rice stocks.

"The government should increase its communication with exporters. As the major rice stock holder, any move by the government could have an impact on the competitiveness of rice exporters," she said.

The ministry recently sold 1 million tonnes of rice to three exporters. It is planning to release more of its stockpile gradually amid lower supply in the market.

According to the association's report on Wednesday, the export price of Thai rice has increased gradually from last week, although the government has released some of its stockpile to the market because of a shortage in the supply of rice in many countries.

The price for Hom Mali rice has grown from US$1,017 (Bt32,000) a tonne last week to $1,057 this week, while the price of 5 per cent white rice was up from $463 to $472 a tonne. The price of Pathum Thani rice increased from $787 to $791 a tonne.

In addition, Thai and Vietnamese rice exporters are scheduled to meet in Ho Chi Minh next month to tighten cooperation after an expected shortage in the supply of rice due to the natural disasters in many nations.

Korbsook said the price gap between Thai and Vietnamese rice had narrowed in the past few months as Vietnam's rice production had gone down. Moreover, Vietnam's price cutting policy would not benefit farmers.

Therefore, as the world's two largest rice exporters, the traders of the two nations should increase cooperation to create a sustainable price in the world market.

Source: The Nation