The government has agreed to raise guaranteed rice paddy prices in an attempt to ease pressure from protesting farmers blocking roads in Phitsanulok and Ayutthaya.

The National Rice Policy Committee, chaired by Prime Minister Abhisit Vejjajiva, yesterday agreed to seek cabinet approval for the new price guarantees.

Under the proposal, guaranteed prices for Pathum Thai I paddy would rise to 11,500 baht a tonne, up from 11,000 baht; regular paddy would be increased to 11,000 baht a tonne, up from 10,000 baht a tonne; and the glutinous rice price to 10,500 baht a tonne, up from 9,500 baht a tonne.

The maximum amount of guaranteed rice per family will be raised from 25 to 30 tonnes.

But farmers in Ayutthaya who are blocking a road near the provincial office said the new guaranteed prices are still far below what they are requesting, which is 14,000 baht a tonne, and vowed to continue and expand their protest.

Meanwhile, about 1,000 farmers in Phitsanulok blocking road No.117 were also dissatisfied with the resolution and they said they would intensify their demonstrations.

Tharadol Piempongsan, Mr Abhisit's deputy secretary-general, said farmers should agree to the new guarantees because the prices cover their rising costs.

The government is now expected to spend 30.4 billion baht, up from a previous budget of 19 billion baht, on the price guarantees for 9.51 million tonnes of this year's second rice crop.

Mr Tharadol said the Commerce Ministry also reported a decline in rice prices due to the depreciation of the Vietnamese dong, which has forced Vietnam to sell its rice at lower prices.

As of March, Vietnamese jasmine rice cost US$952 (28,900 baht) a tonne, down from $961 (29,200 baht) a tonne in February, while regular white rice was at $465 (14,100 baht) a tonne, down from $475 (14,400 baht).

The ministry insisted the falling prices were not due to the government's previous sale of 4 million tonnes of rice stocks.

Source: Bangkok Post