Prime Minister Prayut Chan-o-cha recommended on Monday that small paddy fields be integrated and share resources to cut costs in order to sustain Thailand's status as the world's largest rice exporter.
Prime Minister Prayut Chan-o-cha wants growers of small paddy fields to share resources for lower costs to boost Thailand's rice competitiveness. (Photo by Krit Promsaka na Sakolnakorn)
Gen Prayut said that Thailand lost its rice-exporting championship due to competition from other rice-exporting countries that had lower production costs. Therefore, he said, Thailand needed to urgently lower its rice-production costs.
Industry analysts, however, have noted repeatedly that the actual reason Thailand lost its crown due to the previous government's failed rice-pledging scheme, which attempted to manipulate the international rice market by withholding stock to drive up prices. Competing nations took steps to unlock additional supply at lower prices.
The general recommended that small paddy fields share machines and equipment. Small farmers naturally bore higher costs, Gen Prayut reasoned.
How the government planned to convince farmers to break from tradition and provide services, such as harvesting, for free was not specified.
The prime minister also said that the government was promoting the cultivation of quality rice including jasmine and glutinous rice.
He estimated that Thailand would export 11 million tonnes of rice this year, compared with 9 million tonnes last year. He commented that its rice yield might drop slightly next year due to the limited water reserve that prevented the second rice crop.
Regarding the government's rice stock of 18 million tonnes, Gen Prayut said his government was investigating how to sell it pending an examination to contain the rice storage cost of about 2 billion baht per month.
Chukiat Ophaswongse, honorary president of the Thai Rice Exporters Association, earlier said Thailand had exported more than 8 million tonnes of rice in the first nine months of this year and the total export amount of 11 million tonnes would be possible if the country exported about 1 million tonnes per month in the rest part of the year.