A proposal to set up a business institute to handle sustainable rice production management, focusing on research and development (R&D), is scheduled to go before the National Rice Policy Committee for vetting this month or next.
Commerce permanent secretary Chutima Bunyapraphasara said the new institute with initial funding of 600 million baht would play a vital role in upgrading Thailand to become a manufacturer and exporter of value-added rice products.
"The institute's R&D will focus on value-added products that match the demands of global consumers," she said. "It will also work on convincing the private sector to optimise and make use of available research."
Ms Chutima said previous rice-related research was mostly shelved as the private sector did not want to put up the investment needed.
The institute would study and propose non-tariff barriers Thailand should exercise against imported grains, she said.
In related news, the government was unlikely to persuade China to sign a new government-to-government rice sale this month, as Chinese authorities yesterday asked to postpone a joint meeting on the matter. A new date is undecided.
In May, Commerce Minister Apiradi Tantraporn said Thai officials asked China to consider signing a deal for 1 million tonnes of rice at a meeting for a rail cooperation panel hosted by Thailand on June 17.
Thailand wants China to buy newly harvested grains as it tries to cope with output from the next harvest season.
Thai officials and their Chinese counterparts signed a memorandum of understanding (MoU) in December 2014 for 1 million tonnes each of old and new rice along with 200,000 tonnes of rubber. The MoU was part of the high-speed rail plan. Delivery was scheduled for this year.
The two parties signed an agreement late last year for the first million tonnes of rice.
Ministry officials said the government has already delivered 1 million tonnes of rice sold to China by the Yingluck Shinawatra government.
Duangporn Rodphaya, director-general of the Foreign Trade Department, said the department's officials led by the commerce permanent secretary would fly to South Africa and Mozambique next month to pursue more rice sales to African countries.
The government holds 10 million tonnes of rice in its stocks, down from 18.7 million accumulated under previous subsidy schemes that bought rice from farmers at prices 40% above market rates from 2011-14.
Since the May 2014 coup, some 6.12 million tonnes of rice has been sold via 15 auctions, fetching 64 billion baht.
The government is calling a 16th bid for rice stocks, this time for 2.24 million tonnes, the biggest proposed sale since the National Council for Peace and Order took control. Rice stocks put up for auction will comprise 16 rice types including Hom Mali rice, white rice, glutinous rice and broken rice now kept at 173 warehouses in 35 provinces.
Bidders were allowed to inspect rice quality from June 6-10 and submit bid envelopes on June 15.