Five-Nation Rice Industry Federation Planned for ASEAN

Thailand and Vietnam are preparing for the establishment of the region’s first federation of rice producers and millers, comprising five countries, during next month’s Asean Leaders Summit.

The idea would coincide with ASEAN’s plan to promote growth of the agriculture industry, boost incomes for farmers, and ensure food security in the region. Commerce Minister Boonsong Teriyapirom said Asean leaders were expected to announce the establishment of the federation at the summit in Cambodia. Rice-industry cooperation was a major topic of a meeting between Thailand and Vietnam this past weekend.

Thailand’s Foreign Trade Department will talk with Laos, Myanmar and Cambodia to secure cooperation under the concept as well, Boonsong said. Under the concept, Thailand will support investment in silos and warehouses in Vietnam to increase rice-stockpiling efficiency and bargaining power for Vietnamese rice producers. Because of Vietnam’s low rice-storage capacity, it has to ship rice quickly after it is harvested. Thus it has low bargaining power to boost prices in the world rice market.

Excerpted from The Nation, October 30, 2012

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