136 budget stores ready for launch

136 budget stores ready for launch

The government is set to introduce low-cost department stores next week in a bid to tackle the rising cost of living.

Commerce Minister Chatchai Sarikulya said 136 budget stores nationwide would open on June 19 as a pilot project to sell more than 30 consumer products at prices about 20% lower than similar products sold in general outlets.

The budget stores will be run and invested in by the private sector, while the Commerce Ministry will act as the coordinator with suppliers and wholesalers and handle public relations.

Gen Chatchai said the low-cost stores would offer an additional channel for consumers.

Normally, packaging and marketing costs represent 30-40% of a product's production costs.

Products sold through the budget outlets will be available in simple packaging and focus only on the quality of the products rather than attractive packaging.

Gen Chatchai said the government planned to expand the projects to cover every province but insisted the expansion would be cautiously run to prevent any impact on existing outlets.

The minister said the government was looking for ways to sell cheap packaged rice to the people as assigned by Prime Minister Prayut Chan-o-cha by using state rice stocks.

The Agriculture Ministry has been assigned to select rice cooperatives or rice communities to handle packaging, while the Interior Ministry will find the best ways to distribute the cheap rice to low-income earners. More details will be discussed at a meeting of the National Council for Peace and Order on Friday.

Gen Chatchai also insisted the government would try its best to prevent any negative effect on the normal market for packaged rice.

"This initiative is aimed at promoting social enterprises, as a group of farmers or cooperatives will be allowed to handle the rice packaging and learn distribution techniques," he said.

The government controls 16 million tonnes of stocks, down from 18 million tonnes accumulated from previous rice-pledging schemes.

Remaining stocks include 2.6 million tonnes of high-quality rice ready to sell and 13-14 million tonnes of substandard grains. The ministry has sold 2.1 million tonnes, fetching 22.4 billion baht so far.

The government plans to call bids for another 2.6 million tonnes of high-quality rice from state stocks between now and August while transferring low-quality and substandard grains to the industrial sector.

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