Thailand: Commerce minister says rice exports will grow as targeted

Commerce Minister Krirkkrai Jirapaet voiced confidence that Thailand's rice exports this year will grow as targeted because the demand for Thai rice in world markets remains high. The minister expressed his satisfaction over the average paddy prices in the crop season this year are Bt300-400  higher than those of last year although there are droughts in many areas.

The problem of offering advance prices of crops to farmers at lower than market rates -- a kind of rice mortgage -- are still being pressed by rice mills or other entrepreneurs. However, the minister said he had instructed local officials to strictly oversee the matter and to help farmers in areas under their jurisdiction.

With strict measures taken by the government, corruption among such local officials had lessened and farmers are able to deposit paddy rice at good prices. In the 2007 crop season, the offering prices of paddy rice average Bt6,000-6,600 per ton, Bt200-300 higher than those of last year.

At the same time, prices of export rice at present are averagely at least US$25 higher than those of last year. Regarding the farmers' call for the state to help oversee higher costs of fertilizers, insecticide and other related products.