EDITORIAL
With reason seemingly abandoned, the country now must simply hope that the government will abandon its attempt to form an increasingly awful cartel to set world rice or food prices. Prime Minister Samak Sundaravej was unwilling to take the pointed hint of India, currently the world's number three rice producer, on what a bad idea it is. Mr Samak seems blinded by the populism of it all. He sees Thai rice farmers exchanging bags of rice for bags of gold and cash. He must slow down and consider the ramifications of what he is doing and decide, like most countries, what a bad idea it is.
Mr Samak came up with the idea of a rice cartel just last month, as he watched local and world prices of the food staple rise. He has unabashedly fallen in love with the idea, as head of the Thai government, to raise them higher on a whim. After two speeches bashing the United Nations and the Organisation of Petroleum Exporting Countries (Opec) for high oil prices, Mr Samak suddenly decided he wants to be the head of the Organisation of Rice Exporting Countries, which he even will call Orec. Like Opec, he wants to turn rice prices on and off, because that would make Thailand powerful and maybe give farmers much higher income.
First, Mr Samak needs to think about how the world views Opec and its leading member, Saudi Arabia - indeed what the premier himself thinks of this oil cartel. The prime minister is correct to strongly criticise Opec for doubling and tripling the cost of oil in countries like Thailand at the turn of their tap. He also is right to criticise the United Nations, World Bank and others for turning a blind eye to the market manipulations of a necessary commodity like oil. What he has not done is consider that if Thailand arrogantly controlled rice prices, Mr Samak's Orec would earn this country many times the criticism currently given to Saudi Arabia and Opec.
Mr Samak may not mind making Thailand an object of world criticism or hatred - but its citizens do. If high-priced and scarce oil imperils the Thai economy and threatens inflation so high that poor people can barely eat, what would high-priced, scarce rice do to nations around the world? If Thailand were to sit on millions of tonnes of rice like Saudi Arabia and Iran sit on their oil, waiting for higher bidders while people starve, the image of Thailand would be destroyed overnight, and the country never would recover.
Last week, the Rice Exporters Association tried to explain to the premier why Orec is technically impractical. For one thing, unlike oil, rice rots. Mr Samak appeared deaf, as did Deputy Prime Minister and Commerce Minister Mingkwan Saengsuwan, who has appointed himself chief Orec organiser. For another, rice is renewable and sustainable. Oil sits under Saudi Arabia, but rice can grow pretty well anywhere. Until 20 years ago, the United States sold rice to the world. Mr Samak should think of the law of unintended consequences, because if Thailand tries to withhold food from the market, the rest of the world will simply grow food and compete.
Competition: There is a word. Thailand has brilliantly boosted fragrant, jasmine (hom mali) rice throughout the world. It can increase its market through dozens of methods - from bringing neighbours into cooperatives in the region, to exporting dishes, markets and restaurants worldwide. Now is the time to abandon talk of a rice cartel, and renew the effort to sell Thai food and cuisine everywhere. It is tested, it is moral and it can be more and more profitable.
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