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

Analysts say that even if the five countries agree on a broad price band, it would be difficult to enforce since buyers could turn to  elsewhere to purchase.

They pointed out that maintaining rice prices would please large-scale rice farmers and traders in countries like Thailand and Vietnam, but it would enrage nations which rely heavily on imported rice.

REPLACEMENT SUGGESTED

To replace the short-lived rice cartel proposal, Nappadon said Tuesday that he favored the creation of a Council of Rice Trading Countries (CRTC) to discuss boosting rice production, exchange of technology and improving rice quality.

The foreign minister invited ambassadors from India, Pakistan, Cambodia, China, Vietnam and Myanmar to appoint representatives for the council in the next few months.

Cambodia, however, still insisted that an association of rice exporting countries could still be helpful to avoid fierce competition which will threaten the livelihoods of people in the region and beyond.

The country's Information Minister Khieu Kanharith said they would pursue discussions about forming such an association at a meeting in Vietnam later this year.

After the Philippines scrapped its largest 675,000-ton rice tender of the year, Thai rice prices dipped by some 5-10 percent Tuesday. But experts forecast that Thai rice prices are expected to remain strong as the current fall is not a big deal compared with the price surge over the last few months.

The ADB announced last week emergency funding to help poor countries grappling with spiraling rice prices. It warned that price for staple food could keep rising and it would stifle economic growth in the region.

The benchmark Thai variety, Pathumthani fragrant rice, was priced two weeks ago at 998 dollars per ton for export, up from 512 dollars in January.

Thailand is world's No. 1 rice exporter and it shipped an estimated 9.5 million tons of rice overseas in 2007.

   1 2 3   

   1 2 3