Commerce Minister Kittiratt Na-Ranong has vowed to proceed with the Pheu Thai Party's election promise to buy paddy rice from farmers at 15,000 baht a tonne, while conceding it could increase the export price of Thai rice to US$800 a tonne, from $550 this week.

He asked consumers to support the scheme because it would raise incomes for farmers.

"Domestic rice prices might escalate, but be sure the government will assist consumers to cut expenses on other goods through Blue Flag shops," he said.

Blue Flag is a programme under which the Commerce Ministry has tried to encourage manufacturers and suppliers to sell products at lower prices in different locations and during different periods.

There are 4,300 Blue Flag food shops, and the ministry plans to raise the number to 6,000 this year.

Mr Kittiratt said the high cost of food and increased minimum wage might affect the real sector and export growth, which was projected earlier at 15%.

"It is not the end of the world if exports do not reach their projection," Mr Kittiratt told members of trade associations including the Thai Chamber of Commerce on his first day as commerce chief.

He believes that if Pheu Thai's economic pledges are implemented, the economy will expand by an additional one percentage point early next year.

He also downplayed the expectation of high inflation due mainly to rising food costs.

"A little rise in the inflation rate is acceptable. People have to change their attitude toward the matter," he said.

But with new support measures next year, he is confident exports will expand by 15% year-on-year.

Korbsook Iamsuri, president of the Thai Rice Exporters Association, asked the government to sell rice in its stocks regularly once the pledging programme is reinstated.

"Exporters prefer to see transparent rice deals from the government, as well as favourable conditions for small operators such as small lot sales, at about 5,000 to 10,000 tonnes," she said after meeting with Mr Kittiratt.

Pornsil Patcharintanakul, deputy secretary-general of the Thai Chamber of Commerce, encouraged support for businesses to offset higher costs from wage and salary hikes Pheu Thai is proposing.

Source: Bangkok Post