PWO president Pisut Chalakornkul said yesterday that the name-change would not only highlight the organisation - which celebrated its 52nd anniversary yesterday - as a trading arm, but also enhance its status as an efficient agency.

A final decision on whether to change its name will be made by the PWO board by the middle of the year.

"The PWO has many businesses - such as warehouses, cold storage and piers - that could generate higher income if well managed. Yet it concentrates entirely on rice stocking and price intervention," Pisut said.

The PWO's main task is to stock crop surpluses, which can cause a fall in price, prompting the government's intervention programme. Rice is its main crop, with the agency currently storing more than 3.3 million tonnes in its warehouses.

In fact, the PWO can become an efficient trader and distributor through its own facilities, said Pisut.

The organisation will take on more professional management to ensure the efficiency of its response in all areas: the pledging programme, storing of crops, trading and marketing, packaging and logistics.

"The new outlook of the organisation will allow us to use the ministry's facilities to strengthen our operational efficiency," he said.

During the Thaksin Shinawatra regime, the PWO's former board of committee drew up a restructuring plan, which focused on the establishment of a subsidiary to ensure high working efficiency in terms of marketing and trading.

However, the plan was dropped due to a corruption scandal involving officials and rice surveyors under the government's rice-pledging programme.

Pisut said the organisation would still implement the plan, but might not need to set up a subsidiary. Instead, it will focus on a more professional approach, which will enable it to make profits.

The PWO normally records a trading deficit from its operations. However, Pisut targets balancing the accounts this year as a result of the restructuring plan. It is expected to generate about Bt1 billion in revenue this year.

"The organisation should increase income by the following year, as it will focus on promoting its own rice brand to international markets and seeking income from warehouse and cold-storage operations," he said.

In addition, Pisut said the organisation would urgently release 3.3 million tonnes of rice in the government stockpile in order to lower its operating costs.

The government will concentrate on promoting exports to countries with a high demand for rice. These include Indonesia, the Philippines, South Africa and Vietnam.

Vietnam needs rice for re-export after a drought this year, he said.

Pisut added that the government was considering releasing rice stockpiles on a government-to-government basis.

Petchanet Pratruangkrai

The Nation