The government has extended its rice-pledging programme in a bid to maintain high local prices for the next main crop in November.

It also plans to open a special subsidy programme for non-seasonal rice production with an estimated volume of 1 million tonnes of paddy soon. The plan will add to the already high government rice stockpile, now at about 11 million tonnes of paddy.

Commerce Minister Boonsong Teriyaphirom said the plan would soon be proposed for approval from the National Rice Policy Committee to further the programme for 2012-13 rice production at the same prices, Bt15,000 per tonne for 100-per-cent white rice and Bt20,000 for jasmine rice.

"This price-pledging programme should be carried on to promote domestic rice prices even though the government has to handle overstocking and a drop in exports," Boonsong said.

Some operating practices and conditions will be adjusted to increase the efficiency of the programme to ensure farmers directly benefit from the highly subsidised prices, he said.

Moreover, the government will consider expanding the programme to out-of-season production that farmers have to grow to avoid damage from floods. About 1 million tonnes of out-of-season rice is expected to enter the pledging scheme next month. The ministry reports that the rice price has increased during the pledging project.

Paddy jasmine rice price is quoted at Bt15,242 per tonne, up from Bt13,107 at the same time last year. Paddy white rice is now at Bt10,720, up from Bt8,300 per tonne last year. However, rice exports dropped significantly, by 45.61 per cent year on year, to 3.38 million tonnes in the period from January 1 to June 27.

Boonsong will visit Vietnam today and tomorrow to tie up cooperation with that country on strengthening Asean as a trading centre for rice and to promote more investment between the two nations.

At the Joint Trade Committee meeting in Hanoi, Boonsong and the Vietnamese trade and industry minister will discuss how to increase trade facilitation for investors as well as boost cooperation in many areas.

Boonsong said Thailand would focus the discussion on tightening cooperation on increasing rice quality and stabilising the global rice price.

Moreover, both nations will cooperate in promoting investment and create networking for various industries including petroleum, automobiles and parts, electronics, and farm production.

Source: The Nation