The government plans to push the average price of exported rice to US$700 a tonne and reap revenue of 200 billion baht by focusing on quality over quantity, says newly appointed Commerce Minister Boonsong Teriyapirom.

Thailand shipped 10.6 million tonnes of rice last year, up by 18% from 2010, with a total value of 190 billion baht, up by 13%. The average export price was $595 a tonne, up by 0.7%. The top five importers were Nigeria, Indonesia, Bangladesh, Iraq and Ivory Coast.

Mr Boonsong yesterday convened a meeting with related government and private-sector groups to discuss rice policy.

Yanyong Phuangrach, the commerce permanent secretary, said the government will release stock for bidding in the low-price market and under the no-bidding method for the high-end market.

The ministry will open the bidding for 200,000 tonnes of broken rice with an aim to raise prices, not focusing on fair treatment.

It will also seek cabinet approval for continuous implementation of the paddy mortgage scheme at the same price.

It was noticeable that only some rice exporters - Chaiyaporn Rice and Food Products, CP Intertrade, Asia Golden Rice - were invited to the meeting, while key executives of the Rice Exporters Association, which opposed the mortgage scheme, were left out entirely.

Prasit Booncheuy, president of the Thai Farmers Association, said the government has failed to boost rice prices in the market with its mortgage scheme implemented last October, as white rice paddy remains about one-third below the guaranteed price of 15,000 baht a tonne.

He said the current price of paddy with 15% moisture content is 9,500 to 9,800 baht a tonne, but the price may be as low as 7,800 baht a tonne for paddy with higher moisture content.

The Internal Trade Department reported a white rice price Thursday of 9,600 to 10,200 baht a tonne in Nakhon Sawan province.

"The project is not successful, as the market price is still low even though the government has announced to accept all grain to its mortgage scheme," said Mr Prasit.

The association also detects corruption in the implementation. Mr Prasit said the flood cut down the registered amount of paddy production by some farmers, creating a loophole as millers pledged their own paddy under farmers' names.

"Millers pay 1,000 baht a tonne to use the farmers' right to mortgage their paddy." he said.

"The practice is supposedly widespread in Lop Buri."

Even so, the association wants the government to continue the paddy mortgage programme, as farmers who have begun cultivating rice will be able to harvest their paddy in May.

Source: Bangkok post