The government is being urged to speed up the implementation of measures to curb a sharp fall in price of Thai Hom Mali rice, particularly this year's pledging scheme for farmers with their own rice barns.
Vichai Srinawakul, vice-president of Thai Rice Millers Association, said they are calling on the government to step up declaring the exact time frame for the so-called rice barn pledging scheme for Hom Mali rice so that rice farmers can begin pledging their paddy with the Bank for Agriculture and Agricultural Cooperatives (BAAC).
The scheme, once announced, will encourage rice farmers not to rush in releasing their new harvested to the market.
"The government must clarify to rice farmers measures to encourage them to delay disposing their paddy and give choices to farmers who agree to delay their disposal," he said.
He cited the BAAC's plan to spend about 9.98 billion baht to pledge the farmers' barn rice at 11,700 baht per tonne plus storage fee at 1,500 baht a tonne for Hom Mali paddy and glutinous paddy, targeting a combined 2 million tonnes of paddy.
Domestic prices of Thai Hom Mali paddy fell yesterday to only 9,500 baht per tonne, the lowest in 10 years.
The fall was partially attributed to relatively low purchase prices set by rice exporters, at only 15,800-16,600 tonnes of milled rice per tonne. Normally, milled rice fetches a minimum of 20,000 baht a tonne.
Charoen Laothamatas, president of Thai Rice Exporters Association, said the price fall was mainly because the Hom Mali paddy released this period is mostly of poor quality, with as much as 30% moisture.
In a move to cooperate with the government in managing domestic rice prices, rice exporters last week agreed to buy 200,000 tonnes of Hom Mali rice and store it in warehouses during November and December, the period when new supply from the country's annual harvest season starts flowing into the market.
The cooperation came shortly after the government announced a pause in its efforts to dispose of state rice stocks to curb any adverse impact on domestic prices.
Exporters will ask for the government's financial support in interest rate subsidies and warehousing fees worth a combined 60 million baht.
According to a source from Commerce Ministry, Deputy Commerce Minister Suvit Maesincee called a meeting with millers yesterday to inquire into paddy trading development and paddy production so the government could introduce more measures to handle the impact of the new supply.