Major Thai oil and gas companies have jointly launched rice-selling programmes to help farmers who are struggling with low rice prices due to oversupply.
PTT Plc, the country's oil and gas conglomerate, has launched a project to allow small farmers to sell their rice at its more than 1,400 petrol stations nationwide, says president and chief executive Tevin Vongvanich.
"It is a collaborative programme aimed at helping poor farmers. We, along with owners of all petrol stations across the country, will come together to allow farmers to sell rice at our petrol stations. This will help farmers and farm cooperatives to sell rice at stations adjacent to their hometown," said Mr Tevin.
PTT will not charge farmers for the service, he said.
Selling rice at stations in their hometown will cut farmers' transport costs and allow them to have larger profit margins, said Mr Tevin.
Some farmers in the Northeast have expressed interest in the project, he said.
Good monsoon rains in major rice-producing countries, including India and Thailand, have brought about quality crops and excessive supply, lowering prices.
The export price of milled premium-grade Hom Mali rice dropped to around US$700 a tonne, well below the record high of more than $1,200 a tonne in 2008, when global rice demand surpassed supply.
This has dragged the price of paddy down much lower. The price of common grade paddy dropped to 6,000 baht per tonne, down from 15,000 baht the previous year.
The government on Tuesday agreed to a subsidy of 13,000 baht per tonne for Hom Mali paddy in a bid to stem potential protests from rice farmers who were dissatisfied with an earlier proposed subsidy of 11,525 baht.
Rice prices are expected to fall further over the next few weeks as Thailand is about to enter the harvest season of its major rice crop, with around 25 million tonnes of paddy set to flood the market.
To help absorb supply and sell rice directly to consumers in order to support farmers, PTT also plans to use the rice purchased from the farmers as New Year gifts, Mr Tevin said.
Bangchak Petroleum (BCP) is also preparing space in its oil stations in Bangkok and surrounding areas to retail rice in directly to consumers.
President and chief executive Chaiwat Kovavisarach said around 100 oil stations are preparing for the rice sale, to start on Nov 7.
The company expects to sell around 15 tonnes of rice in the first stages.
BCP will buy premium grade Hom Mali rice at 33 baht per kilogramme from farmers. It will sell the rice to consumers at 30 baht per kg.
BCP customers holding mileage fuel refill cards or Bangchak Gasohol cards can also use their card points in exchange for rice. Three hundred mileage points can be exchanged for one kg of rice.