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Published on March 31, 2008

Fertiliser now commands Bt18,000-Bt20,000 per tonne, compared to Bt5,000-Bt6,000 a few years ago, while the cost of diesel has increased by more than 8.6 per cent this year to Bt31.44 per litre.

Other agricultural material prices have also jumped, leading to production costs soaring to Bt7,000-Bt8,000 per rai from Bt3,000-Bt4,000.

"Despite satisfactory rice prices, farmers' living standards and way of life are still the same," said Suwan Kathavuth, an adviser to the Thai Farmers Association.

Rice has become so precious that farmers now have to guard their paddy fields day and night against theft, he said.

Phetchaburi farmer Pimjai Chansamut, 43, said rural folk had been left out of the rice boom as they have to sell paddy rice at Bt5,500 per tonne, despite the government's guaranteed price of Bt6,509, to settle debts falling due. If they fail to repay their obligations now, creditors may not lend them working capital for the next crop.

"Farmers cannot survive solely by growing rice. The government should find ways to ensure farmers gain maximum benefits from surging rice prices as well as any state subsidy programme," she said.

A government survey has found that the average age of farmers is 55 years. By 2013, the workforce in the agricultural sector will have shrunk by 37 per cent.

The rice export price will likely be jacked up to US$1,000 (Bt31,500) per tonne soon, which will drag the domestic price up to its equivalent, Bt30,000, Commerce Minister Mingkwan Sangsuwan said.

This is a golden year for rice. The export price of jasmine rice surged to $755 per tonne on March 12, while white rice was quoted at $556.

The Agricultural Economics Office predicts the Kingdom's total rice production will reach nearly 20 million tonnes this year. Of the total, the main harvest will reap 15.49 million tonnes and the second harvest 4.42 million tonnes.

The office said the country's annual domestic consumption was between 9 million and 10 million tonnes. Exports will reach 8.75 million tonnes.

It expected more than 7 million tonnes would be stockpiled.

Achara Pongvutitham,

Petchanet Pratruangkrai

The Nation