Separately, rubber planters are also calling for help from the government as they feel the impact of significant price drops of the commodity in recent years.
"Thai rice exporters have been travelling overseas to sell Thai rice on futures contracts to prevent a drop in prices.
Under the exporters' proposal, they will buy newly harvested rice from the market for delivery under the futures contracts. But if prices fall below the future prices before delivery, they call for government compensation of state rice stocks.
"We're not asking for money, but rather compensation of rice stocks or a discount once we buy rice from state stocks," said Mr Chookiat.
He said there was plenty of demand for new rice, not only from
Sermsak Kuonsongtum, the association's vice-president, said
The global rice market received a jolt a couple of weeks ago when the junta decided to auction off the 167,000 tonnes of rice the government stockpiled over the past two years during the expensive rice pledging scheme. Although the bidding drew an active response from bidders, the military regime only sold 73,000 tonnes for
In a related development, Jintana Chaiyawonnagal, director-general of the
Paddy rice production for the 2014-15 second crop is estimated at 28 million tonnes, while output for the 2015-16 main crop is estimated at 26-27 million tonnes.
In the meanwhile, associations representing rubber planters in 63 provinces are due to meet their governors today to pass their request to the new cabinet for the government not to sell 210,000 tonnes of rubber in its stock to the market in help avoid further price falls.
The stock has also lessened the bargaining power of Thai sellers in the global market, they said. The government should instead use the stockpile for road construction, futsal pitches and kindergarten playgrounds.
Rubber prices have dropped sharply from a peak of
Related search: commodities, rice
(c)2014 the Bangkok Post (Bangkok, Thailand)
Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com
Distributed by MCT Information Services