Thailand plans rice cartel

Prime Minister Samak Sundaravej yesterday invited Burma to join a Mekong rice cartel so that key producer countries could exert greater influence on the world market.

Samak said after meeting his Burmese counterpart Thein Sein that at least five countries in the region - Burma, Cambodia, Laos, Thailand and Vietnam - should group together to increase their bargaining power.

Rice prices have doubled in three to four months, with jasmine, the most expensive, topping US$1,300 (Bt41,100) per tonne.

Burma, once Asia's rice bowl, now grows enough for local consumption with little left over for export.

"We don't aspire to be like Opec [Organisation of Petroleum Exporting Countries], but we hope to be just a group of five to help each other in trading rice on the world market," Samak told reporters.

Thailand is the largest rice provider to the world, shipping out some 9 million tonnes annually, followed by Vietnam with 5 million tonnes.

Last year, Burma exported only some 180,000 tonnes of rice while Cambodia and Laos are still struggling to feed their own people.

Samak said Thailand stood ready to assist Burma and the other producers improve yields as they join the grouping.

Foreign Minister Noppadon Pattama, who also attended the meeting with visiting Thein Sein, said the government was eager to help set up the so-called Organisation of Rice Exporting Countries (Orec).

"Thailand has talked about this idea for a long time. I think it's time to do it, probably within the term of this administration. At least, the region's main rice producers should sit down to discuss the proposal," he said.

Orec would not act like a cartel that dominates the market, but would advise its member countries in production and marketing areas, he said.

Samak assigned Commerce Minister Mingkwan Sangsuwan to contact his counterparts in the region to enter into a formal discussion on the matter.

Samak also discussed infrastructure development schemes with Thein Sein.

The Cabinet is due to endorse a memorandum of understanding with Burma next Tuesday to join the Tavoy deep-sea port development project.

The agreement will let Burma work with Thai port developers in the following stage, Noppadon said.