Thailand floats ideas of OPEC-style cartel for rice-producing nations amid rising prices.
Thailand, the world's biggest rice exporter, said Friday that it wants to form an OPEC-style cartel with four of its Southeast Asian neighbors so they have has more control over rice prices, which have tripled this year.
Commerce Minister Mingkwan Saengsuwan plans to talk with his counterparts in Laos, Myanmar, Cambodia and Vietnam about the proposal. The price of rice has reached $1,000 a ton for 100 percent Grade B white rice, the regional benchmark.
"Though we are the food center of the world, we have had little influence on the price," said Thai government spokesman Vichienchot Sukchokrat. "With the oil price rising so much, we import expensive oil but sell rice very cheaply and that's unfair to us and hurts our trade balance."
Vichienchot said Prime Minister Samak Sundaravej brought up the idea during discussions Wednesday with Myanmar's Prime Minister Lt. Gen. Thein Sein in Bangkok. "The idea is that we can work together to improve yields and production and have some influence on setting the prices, making it a little more balanced," Vichienchot said.
Global rice prices have risen sharply this year amid global food inflation, poor weather in some rice-producing nations and growing demand that has outstripped supply. Some Asian countries, including India and Vietnam, have contributed to the problem by curbing rice exports to guarantee their own supplies.
Samak said Myanmar supported the idea, while officials in Vietnam said they are studying it and may support it. Officials in Cambodia and Laos could not be immediately reached for comment. Much like OPEC sets oil prices, the tentatively named Organization of Rice Exporting Countries would help set rice prices to ensure farmers benefit from increasing demand for the staple.
Thailand, the world's biggest rice exporter, said Friday that it wants to form an OPEC-style cartel with four of its Southeast Asian neighbors so they have has more control over rice prices, which have tripled this year.
Commerce Minister Mingkwan Saengsuwan plans to talk with his counterparts in Laos, Myanmar, Cambodia and Vietnam about the proposal. The price of rice has reached $1,000 a ton for 100 percent Grade B white rice, the regional benchmark.
"Though we are the food center of the world, we have had little influence on the price," said Thai government spokesman Vichienchot Sukchokrat. "With the oil price rising so much, we import expensive oil but sell rice very cheaply and that's unfair to us and hurts our trade balance."
Vichienchot said Prime Minister Samak Sundaravej brought up the idea during discussions Wednesday with Myanmar's Prime Minister Lt. Gen. Thein Sein in Bangkok. "The idea is that we can work together to improve yields and production and have some influence on setting the prices, making it a little more balanced," Vichienchot said.
Global rice prices have risen sharply this year amid global food inflation, poor weather in some rice-producing nations and growing demand that has outstripped supply. Some Asian countries, including India and Vietnam, have contributed to the problem by curbing rice exports to guarantee their own supplies.
Samak said Myanmar supported the idea, while officials in Vietnam said they are studying it and may support it. Officials in Cambodia and Laos could not be immediately reached for comment. Much like OPEC sets oil prices, the tentatively named Organization of Rice Exporting Countries would help set rice prices to ensure farmers benefit from increasing demand for the staple.
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