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Published on April 5, 2008

The Commerce Ministry today will meet with 13 rice-industry and related groups to restore normalcy in the retail and export rice markets.

Previously, the government appeared to have bungled by emphasising the domestic rice price, resulting in chaos for exporters and retailers.

Thai Rice Millers Association president Pramote Vanichanont yesterday said it was not possible for the government to help exporters by setting minimum and maximum prices for rice.

Exporters have complained they cannot fulfil foreign orders, because they cannot secure supplies at an acceptable price.

Today's meeting called by the Commerce Ministry will include representatives from millers, exporters, fertiliser distributors and other related parties.

Besides the chaotic export trade, the rice issue has also hit domestic consumers. Some have begun hoarding the grain for fear of higher prices and shortages.

Tesco Lotus, the largest hypermarket chain, yesterday reported frantic sales of rice at its stores nationwide, jumping threefold in the past two weeks.

Tesco Lotus senior vice president Darmp Sukontasap said some consumers were panicking following rumours of possible shortages and that prices would continue to increase, because households have been stockpiling rice beyond usual amounts, said Darmp.

The price of a 5-kilogram pack of rice has topped Bt100, due to families hoarding, he said, adding that daily sales now totalled 6,000 packs, up sharply from a daily average of 2,000.

Darmp said Tesco Lotus would ensure that rice did not disappear from its shelves and urged the government to send the right signal to the market and consumers as far as supply and price were concerned.

Previously, the Commerce Ministry said the rice price could top US$1,000 (Bt31,600) per tonne, prompting some farmers, millers and others in the supply chain to start hoarding. However, Darmp said retail chains like Tesco Lotus had no policy of hoarding to take advantage of the price uptrend.

"All modern retailers thrive on efficient stock management, so they keep inventory at a minimum and for the shortest possible time, in order to save on costs and use space efficiently."

"We now have only 20-30 per cent of our orders for packed rice, which is usually about 10,000 packs from 20 suppliers every four or five days. We're told there is a shortage," he said.

Petchanet Pratruangkrai, Kwanchai Rungfapaisarn

The Nation