(Xinhua)
Updated: 2008-05-08 20:57

Lao Foreign Minister spokesman said his country would seriously consider the idea, saying a cartel would give the group of countries "bargaining power."

After meeting with visiting Myanmar Prime Minister Thein Sein last Friday, Samak told media that Thein Sein has approved in principle of the thought.

Vietnam has also made its stance clear that it can join the OPEC-like body if the future organization ensures the harmonization of interests of both Vietnam and the international community.

ARGUMENT OVER PLAN

Despite the major rice-exporting nations' enthusiasm for the plan, the Philippines, the world's biggest rice importer, slammed Thailand's proposal as a "bad idea."

Edgardo Angara, chairman of the Philippine Senate's Committee on Agriculture, worried that a small group of producers could control the  staple food and price it beyond the reach for millions and millions of people. Senior officials of the island country blasted the proposal, warning it would aggravate hunger and poverty.

The Asian Development Bank (ADB) also came out against the idea of setting up an OPEC-style rice cartel. The bank's president Haruhiko Kuroda suggested it would be better to allow market forces to operate freely.

In a time when the global food market is experiencing continuous price hikes, hoarding and panic buying, raising the proposal is inappropriate and may not be beneficial to the rice exporting countries and their farmers in long term, said He Changchui, regional representative for Asia and the Pacific of the Food and Agriculture Organization (FAO).

Even inside Thailand, the Rice Exporters Association tried to explain to the premier why OREC is technically impractical. They said unlike oil, rice is renewable and sustainable, and it can grow pretty well anywhere. They added that the rice-exporting countries can't fix price as OPEC does because they can't control their production.

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