Rice from the programme is expected to sell at Bt11-12 per kilogram, 40-per-cent lower than the current price of Bt18-22 per kg. Bids will be accepted on the condition that the rice is packed into 5-kg bags for the domestic market, and will be from the government's stockpiles of 2.1 million tonnes of rice from the 2004-2006 harvest seasons.The ministry will also send inspection teams at random to check the warehouses of rice millers who participate in the government rice-pledging programme in 18 provinces around the country.

Of the total stocks, one million tonnes is white rice, 300,000 tonnes is jasmine rice and the remainder is provincial rice and other rice crops.

Initially, about 30,000 tonnes of rice should soon be distributed to consumers in all provinces through the ministry's provincial offices and the Public Warehouse Organisation's network, Deputy Commerce Minister Wiroon Techapaiboon said yesterday.

He said that to help consumers the ministry would try to curb domestic rice prices by selling low-price rice this year. However, to ensure the highest benefit to farmers, it would not intervene in the export market.

The government will try to balance domestic and export market prices, though the export price will jump to US$1000 (Bt31,500) per tonne in a few months.

Wiroon said that consumers would inevitably have to pay more for rice.

Commerce Minister Mingkwan Sangsuwan said that Thai rice is expected to exceed Bt30,000 per tonne in the next three months with the high demand in the world market.

While urging rice-importing countries, in particular China , to import Thai jasmine rice now ahead of further increases, he told Thai farmers to think carefully before selling their rice now.

To help farmers increase the efficiency of their management of rice stocks and decrease pressure on farmers to sell their rice to millers, the ministry has asked the Bank for Agriculture and Agricultural Cooperatives to provide soft loans for farmers.

The ministry will also call a meeting with fertiliser traders and importers to convince them to sell at fair prices. The ministry has had many complaints of overcharging. Fertiliser is one product under the ministry's price controls. It has recently increased to Bt18,000 per tonne.

The ministry will also consider importing stocks of fertiliser.

Source: The Nation