By PETCHANET PRATRUANGKRAI
THE NATION
The government is considering opening the local market to paddy rice from neighbouring countries under the Asean free-trade accord, though the move was strongly resisted earlier out of concern about circumventing the domestic subsidy programme.
Now Thai rice exports face tough competition after Vietnam started allowing paddy rice imports from Cambodia early this year to increase its export capability.
Despite being bound to Afta, Thailand has not allowed all rice types to be brought into the country. Only broken rice can access the domestic market, and must go directly to the food industry.
Thailand wants to open up the market to all types of rice rather than discriminate, as it hopes to strengthen its export competitiveness in the future.
Yanyong Phuangrach, permanent-secretary to the Commerce Ministry, said last week that Thailand will face a flood of rice and grains after the market is liberalised.
According to the Thai Rice Exporters Association, the country's exports dropped by 9.18 per cent to 5.06 million tonnes as of August 20. Vietnam's rice exports reached 4.6 million tonnes in the first half.
Under Afta, import duties on rice were cut to zero early this year among Asean countries, with the exception of Indonesia, Malaysia and the Philippines. However, Thailand has not allowed paddy rice imports out of fear that it would be used in the pledging project of the government instead of locally produced rice.
Now that the guarantee scheme, which requires every farmer to register for the scheme, has replaced the pledging scheme, the country should not be afraid of the circumvention practice any longer, he said.
The ministry will soon submit the agreement for the National Rice Policy Committee's approval after the Board of Trade of Thailand and the Thai Chamber of Commerce understand the need for rice trade liberalisation.
To ensure that local farmers are not affected by falling prices after paddy rice imports are allowed, the ministry will issue a clear time frame and conditions for allowing paddy imports. Initially, paddy rice will be imported for export only. After rice millers polish the rice, they must transfer it to exporters within a limited period. The government will not allow imports of paddy rice during the harvest season.
The government will also impose additional standards to protect the quality of Thai rice and its prices.
An industry source said Thai rice exports should increase when neighbouring countries send over more rice. Vietnam's exports surged in the first half of the year, as almost 1 million of its 4 million total exports came from Cambodia, the source said.
Prasith Boonchuey, president of the Thai Rice Farmers Association, said farmers support allowing paddy rice imports since Vietnam has taken up price-cutting to compete with Thai rice in international trade.
"Due to lower production costs in Cambodia, Vietnam can dump its fragrant paddy rice at Bt11,000-Bt12,000 a tonne, while Thai Hom Mali is quoted at Bt15,300 a tonne," he said. Clear quality-control measures are needed to ensure that Thai rice is not mixed with inferior rice, he added.
Now Thai rice exports face tough competition after Vietnam started allowing paddy rice imports from Cambodia early this year to increase its export capability.
Despite being bound to Afta, Thailand has not allowed all rice types to be brought into the country. Only broken rice can access the domestic market, and must go directly to the food industry.
Thailand wants to open up the market to all types of rice rather than discriminate, as it hopes to strengthen its export competitiveness in the future.
Yanyong Phuangrach, permanent-secretary to the Commerce Ministry, said last week that Thailand will face a flood of rice and grains after the market is liberalised.
According to the Thai Rice Exporters Association, the country's exports dropped by 9.18 per cent to 5.06 million tonnes as of August 20. Vietnam's rice exports reached 4.6 million tonnes in the first half.
Under Afta, import duties on rice were cut to zero early this year among Asean countries, with the exception of Indonesia, Malaysia and the Philippines. However, Thailand has not allowed paddy rice imports out of fear that it would be used in the pledging project of the government instead of locally produced rice.
Now that the guarantee scheme, which requires every farmer to register for the scheme, has replaced the pledging scheme, the country should not be afraid of the circumvention practice any longer, he said.
The ministry will soon submit the agreement for the National Rice Policy Committee's approval after the Board of Trade of Thailand and the Thai Chamber of Commerce understand the need for rice trade liberalisation.
To ensure that local farmers are not affected by falling prices after paddy rice imports are allowed, the ministry will issue a clear time frame and conditions for allowing paddy imports. Initially, paddy rice will be imported for export only. After rice millers polish the rice, they must transfer it to exporters within a limited period. The government will not allow imports of paddy rice during the harvest season.
The government will also impose additional standards to protect the quality of Thai rice and its prices.
An industry source said Thai rice exports should increase when neighbouring countries send over more rice. Vietnam's exports surged in the first half of the year, as almost 1 million of its 4 million total exports came from Cambodia, the source said.
Prasith Boonchuey, president of the Thai Rice Farmers Association, said farmers support allowing paddy rice imports since Vietnam has taken up price-cutting to compete with Thai rice in international trade.
"Due to lower production costs in Cambodia, Vietnam can dump its fragrant paddy rice at Bt11,000-Bt12,000 a tonne, while Thai Hom Mali is quoted at Bt15,300 a tonne," he said. Clear quality-control measures are needed to ensure that Thai rice is not mixed with inferior rice, he added.
7 comments:
Please boycott all thai products and services.
That's right folks, Vietnam has been bebefiting from border conflict between Cambodia and Thailand.
Abhisit's gov't has been dragging Thailand backward. Keep this up and the Vietnamese rice export will surpass Thailand in a few short years.
Bad attitude toward neighbors will only lead to economic lost. You can take that to the bank.
Now the Siem is nervous that Vietnam will overtake them as the leading rice exporter.
Cambodia farmers have been sending their unprocessed rice to the east which help boost Vietnam's export.
Thailand PAD's pleasing policy will ruin their economy, if it does not change.
Welcome to the 21st century Siem.
Political conflicts domestically and internationally, with Cambodia, do have economic costs.
The markets is interconnected these days. Keep isolating yourself from the rest of the world and you will be poor.
Cambodia's economy is no longer so heavily depended on Thailand. Cambodia can move on to other trading partners, and can survive just fine without the Siem.
Thai Jasmin rice company buy Khmer rice from Banttabong and stuff in there campany name bag and shipped to sell around the world.
Yea why dont Cambodia Government limite or boycott all Vietname and thai products and services. CCP suck
be careful, cambodia. thai always want business monopoly with cambodia i.e. they buy khmer rice and called it their rice to sell overseas in the international market. cambodia should make sure thai or siem don't abuse or exploit cambodian rice and then called it theirs. be watchful, really!
i think cambodia should look into selling our khmer rice directly to foreigners or overseas markets, this way we call our rice khmer rice, not siem or youn rice with middle men or whatever!
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