Thailand, Other Asian Nations Mull Formation Of Rice Cartel

Bangkok, Thailand (AHN) - Thailand has proposed the creation of a rice cartel so countries producing the staple can dictate the price of the commodity in the world market amid concerns of a global food shortage.

The idea came from Thai Prime Minister Samak Sundaravej, who claimed that Laos, Cambodia, Myanmar and Vietnam are supporting the proposal. But Vietnam, the world's second-largest rice producer after Thailand, is still exploring the idea.

The Bangkok Post quoted Vietnamese Deputy Minister of Industry and Trade Nguyen Thanh Bien as saying on Thursday, "The Thai side planned to come to Vietnam late last month for talks over the issue, but they haven't come yet."

Meanwhile, the Associated Press quoted Laos Foreign Ministry spokesman Yong Chanthalansy as saying the Laotian government would "seriously consider" the idea of creating a cartel to gain "bargaining power."

AP also quoted Cambodia's chief government spokesman Khieu Kanharith as saying, "By forming an association, we can help prevent a price war and exchange information about food security."

Ironically, local Thai rice exporters believe the monopoly would be hard to implement, saying that rice is a politically sensitive commodity.