Rice farmers despair amid low prices

No way out: Just as the rice harvest begins, farmers are caught in a trap, facing the lowest prices of the century, with worldwide demand still falling. (File photo)

Kneeling and sobbing before a top commerce ministry official, a Phichit farmer appealed to the government Sunday to help growers suffering from the fall in rice prices to 5,000 baht a tonne, the lowest level in decades.

Sanit Kaho, a 63-year-old farmer, held the legs of permanent secretary for commerce Wiboonlasana Ruamraksa, who visited Wangkrod Tai Tambon Administration Organisation (TAO) in Muang district to meet local authorities, farmers and rice millers to discuss ways to deal with the tumbling price of paddy.

The farmer said she wanted the prime minister to help. She can't afford to sell her Hom Mali rice now due to current prices, adding that mills are offering just 5,000 baht per tonne.

The crop will be ready to harvest this week, though farmers will not be able to survive with this price, she said.

According to Commerce Minister Apiradi Tantraporn, a new scheme will be proposed at a meeting today held by the national rice policy committee.

The scheme sets out a pledging price of no less than 10,000 baht a tonne for Thai Hom Mali paddy.

The measure is expected to be forwarded to the cabinet tomorrow for approval and will take immediate effect as one measure to help farmers.

Ms Sanit said most of Phichit farmers do not have their own barns and usually sell their rice immediately after harvesting it.

The government should come up with ways to address this problem, she said.

Mana Wuthiyakorn, head of the rice farmer network in Bang Mun Nak district, said the government should buy Hom Mali rice directly from farmers at 10,000 baht per tonne, insisting farmers would shoulder the cost of rice production.

He asked Ms Wiboonlasana to relay the concerns to Prime Minister Prayut Chan-o-cha.

He said farmers in the province's three districts are due to harvest their rice this week, but prices are still falling due to manipulation by middlemen and millers.

He said his group will close the Bang Moon-Tapan Hin road if nothing is done to solve the problem.

Mingkwan Pook-eiam, head of an unofficial rice milling club in Phichit, said it is impossible to force millers to buy rice from farmers at 10,000 baht per tonne as exporters buy rice from the millers at lower prices, adding the government should hold talks with exporters to find ways to deal with the issue.

Ms Wiboonlasana said falling global rice prices are to blame for the problem, noting that many rice-growing countries are undercutting Thailand.

As part of the scheme up for approval, the government is planning to set a quota of 50,000 tonnes at US$600 (about 21,000 baht) to countries and exporters interested in buying Thai rice, a measure that should shore up prices, says Ms Wiboonslasana.

The government will launch campaigns to boost domestic demand in rice, such as holding farmers markets specialising in rice, and seek more foreign markets, she said.

Government spokesman Sansern Kaewkamnerd insisted the government wants to solve the problem of falling rice prices in a sustainable way, while educating farmers and the public that domestic prices are determined by global pressures.