April 3, 2008
Bangkok - 650,000 tons of rice from government stockpiles will be released and sold domestically at a reduced price in a bid to ease soaring local prices, according to Commerce Ministry.
Thailand is the world's biggest exporter of rice.
But soaring global prices have driven up the cost at home while raising fears of a shortage if growers cash in by selling too much overseas.
Other rice-producing countries such as India and Vietnam have announced export curbs to ensure domestic supplies.
The benchmark Thai variety, Pathumthani fragrant rice, was priced Wednesday at 930 dollars per ton, up 52 percent from one month earlier, according to the Thai Rice Exporters Association.
Commerce Ministry said the rice from government stockpiles would be priced below market value.
"We will set the price to relieve the burden on consumers," the ministry said in a statement.
High demand in Thai rice is because the rice exporters face tensions in global rice prices caused by droughts.
Ministry officials could not say exactly when the rice would hit the market.
Thailand keeps a supply of rice in emergency stockpiles equivalent to 10 percent of domestic consumption.
The government's stock currently stands at 2.1 million tons, the ministry said.
