EDITORIAL
Commerce Minister Mingkwan Sangsuwan should be applauded for selling nearly half of the 2.1 million tonnes of rice in government stockpiles at cost.
The move will help shield Thailand from soaring international rice prices due to tight global supplies with production falling in Vietnam and India.
Now the ministry must be diligent in ensuring that the rice actually gets to low-income earners who need it most. This is no sure thing.
The government's central storehouses contain about 1.964 million tonnes of rice, while another 145,000 tonnes were contracted for storage with rice millers. About 13,000 tonnes went missing as rice millers sought to sell it for high rates. The government must ensure that none gets pilfered along the way. Last year, weaknesses in the storage system were on full display when one million tonnes of government rice was stolen from a warehouse in Phichit province.
The government must also upgrade its warehouses and diligently monitor private sector partners to make sure that no leakage occurs. Millers who store government rice must be inspected frequently to ensure they do not sell when prices are high and then refill the stocks just before government investigators show up. Anyone caught doing this should be punished severely, as it could have implications for the country's food security.
At the same time, Thais must adjust to higher prices. Whether it means smaller meals or less time in cars, we must realise that price controls are not the answer in the long term. Though consumers may benefit in the short term, price controls usually hurt the economy in the long run. Indeed, the goal now for policy-makers is to ensure that rural poor farmers can actually capitalise on the higher prices instead of just the millers and traders.
As an exporting nation, Thailand is in a much better position than other countries in the region that need to import rice. The government must do all it can to make sure the benefits are widespread.
To do that, the government should invest in irrigation systems and logistics networks to bring down transportation costs in remote areas. It should also help farmers organise so they can have the correct market information and store paddy in warehouses instead of being forced to sell cheaply immediately after harvesting.
The current crisis also shows the plus side of keeping rice stockpiles at a certain level. Rice may be expensive to store, but it's good insurance for times like now when oil and commodity prices are going through the roof.
While other countries like Cambodia, India and Vietnam have banned rice exports, Thailand is supplying the world. The rice stocks allow the government to hold down local prices while still allowing farmers, millers and exporters to sell at record prices.
Finally, police and prosecutors must throw the book at anyone who steals crops. It's sad to hear reports of farmers staying awake all night to protect their fields. We must be able to ensure that farmers in rural areas can enjoy the fruits of their labour. In this way, we can ensure that the commodities boom turns out to be a blessing for the entire country rather than simply a windfall for a few.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Next
Deep link provided by Citebite
