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Published on April 4, 2008

Rice exporters yesterday said they would ask the Commerce Ministry to set a minimum export price to help the management of overseas sales and prevent speculation.

Sompong Kitireanglarp, president of Ponglarp, one of the country's leading rice exporters, said companies were struggling to cope with wild price fluctuations, making it difficult to quote selling prices.

Korbsook Iamsuri, secretary-general of the Rice Exporters Association, said exporters were worrying over foreign traders' speculation in the Agricultural Futures Exchange, which could push prices up further.

The government should consider setting an export price or open bidding for exporters in order to ensure enough supplies to prevent speculation, she said.

Chookiat Ophaswongse, president of the Rice Exporters Association, told Bloomberg exporters were afraid of committing future deliveries while the cost of buying rice domestically remained high, meaning exports could fall.

"Rice exports this month may drop to about 700,000 tonnes from around 1 million in recent months. As I have predicted, there may be easing in the second quarter. Top-grade fragrant rice has already breached US$1,000 (Bt31,510) a tonne. It was at $1,009 yesterday," he said.

To solve the problem, Commerce Minister Mingkwan Sangsuwan plans to meet with 13 groups - including farmers, exporters, millers and rice packers - tomorrow.

In Parliament yesterday, Mingkwan said farmers should sell rice only when the price touches Bt30,000 a tonne. He urged them to adopt the stock investors' approach.

Petchanet Pratruangkrai

The Nation