Phusadee Arunmas
Bangkok Post
Asean members agreed yesterday to set up an Asean Rice Millers Federation in a move to forge closer co-operation and curb price competition.
The new co-operative venture involves seven countries excluding Singapore and Brunei which have no rice production of their own.
The members aim to upgrade the quality of the milling process, strengthen rice management and create more of an integrated rice production network among Asean members.
Asean is the world's leading rice producer, with Thailand and Vietnam alone making for more than half of the global rice trade totalling about 30 million tonnes of milled rice a year.
Commerce Minister Porntiva Nakasai said the presence of the new rice federation would also ensure Thailand's current status as a global rice producer and establish the country as the Asean rice trading hub in the future.
The participants in the new venture also aim to curb smuggling of paddy from neighbouring countries, especially through overland borders.
Despite the zero tariff under the Asean Free Trade Area (Afta) on 23 farm products including rice, maize, soybeans, sugar,and garlic in effect since January this year, paddy continues to be smuggled from neighbouring countries.
The initiative should be a boon for Thai millers, who are utilising only 30% of their relatively high capacities, while highly efficient rice mills are in short supply in countries such as Cambodia.
Thailand currently has milling capacity of up to 100 million tonnes of paddy a year, while the country produces an average of 30 million tonnes of paddy a year.
Charnchai Rattananon, president of the Thai Rice Millers Association, added the initiative would benefit regional rice trading and optimise benefits from the free trade agreement.
Closer ties are also likely to reduce price competition among the bloc, he added.
"If paddy imports from neighbouring countries are legalised, it would help raise Thailand's milling capacity which is now still far underutilised," he said. "Thailand in the future may focus on shipping premium products, while other member countries ship lower-grade grains."
Prasit Boonchoey, president of the Thai Farmers Association, welcomed the initiative but urged the government to work out effective import measures to prevent any impact on local rice.
The new co-operative venture involves seven countries excluding Singapore and Brunei which have no rice production of their own.
The members aim to upgrade the quality of the milling process, strengthen rice management and create more of an integrated rice production network among Asean members.
Asean is the world's leading rice producer, with Thailand and Vietnam alone making for more than half of the global rice trade totalling about 30 million tonnes of milled rice a year.
Commerce Minister Porntiva Nakasai said the presence of the new rice federation would also ensure Thailand's current status as a global rice producer and establish the country as the Asean rice trading hub in the future.
The participants in the new venture also aim to curb smuggling of paddy from neighbouring countries, especially through overland borders.
Despite the zero tariff under the Asean Free Trade Area (Afta) on 23 farm products including rice, maize, soybeans, sugar,and garlic in effect since January this year, paddy continues to be smuggled from neighbouring countries.
The initiative should be a boon for Thai millers, who are utilising only 30% of their relatively high capacities, while highly efficient rice mills are in short supply in countries such as Cambodia.
Thailand currently has milling capacity of up to 100 million tonnes of paddy a year, while the country produces an average of 30 million tonnes of paddy a year.
Charnchai Rattananon, president of the Thai Rice Millers Association, added the initiative would benefit regional rice trading and optimise benefits from the free trade agreement.
Closer ties are also likely to reduce price competition among the bloc, he added.
"If paddy imports from neighbouring countries are legalised, it would help raise Thailand's milling capacity which is now still far underutilised," he said. "Thailand in the future may focus on shipping premium products, while other member countries ship lower-grade grains."
Prasit Boonchoey, president of the Thai Farmers Association, welcomed the initiative but urged the government to work out effective import measures to prevent any impact on local rice.
