Rice purchases from farmers

"The measure is aimed at helping stabilise the rice price in the market amid a slight drop during harvesting of the second crop," Internal Trade Department director-general Yangyong Phuangrach said yesterday.

The government will offer Bt14,000 a tonne for 300,000 tonnes of regular paddy rice and Bt9,000 a tonne for 250,000 tonnes of sticky rice.

The ministry will open a purchasing centre next week.

Next Tuesday, it will also sell its second batch of 100,000 rice packs in 29 provinces, including Bangkok, for Bt120 each. A third lot of 100,000 packs is scheduled for May 30.

Under the procurement contract, the ministry will pay farmers the guaranteed price for paddy rice with not more than 15-per-cent moisture.

It will be the government's first step in intervening in the rice market after announcing it will not start up a pledging programme, due to high prices.

The ministry plans to export the rice it buys and campaign for consumers to eat more sticky rice.

The ministry's first issue of 100,000 packs is nearly sold out, with only 5,000 left. Demand was especially strong upcountry.

The ministry has also found that its consumer rice scheme has not roiled the market. For instance, the retail price of regular bagged rice has inched up from between Bt150 and Bt160 a pack to between Bt153 and Bt163.

To allow greater public access to the cheap rice, the department will allocate 3,000 packs per province, although Bangkok will receive 16,000 packs.