Industry urges rice federation

Industry urges rice federation

Roadshows, phone hotline planned

In order to restore the image of Thai rice, the government is being urged to set up a rice federation including all parties that would tackle the falling reputation in both domestic and global markets.

All parties in the rice industry need to work together to restore the reputation of Thai rice, says Mr Somkiat. APICHART JINAKUL

The federation would include millers, traders, packers and exporters collaborating with the government to repopularise Thai rice after recent consumer concerns over its quality.

State rice stockpiles exceed 17 million tonnes, with some stored for several months under the rice pledging scheme, leading the public to worry about quality and chemical contaminates.

Somkiat Makcayathorn, president of the Thai Rice Packers Association, yesterday said he will push for the establishment of a Thai Rice Federation at his next meeting with the government.

The government is scheduled to meet and discuss rice quality with operators and governmental agencies soon.

"This will be kind of a brainstorming panel to find effective measures to restore the image of Thai rice over the long term," said Mr Somkiat.

The proposed federation could be an independent body but have the government spearhead any crisis by launching public relations campaigns.

Roadshows to foreign countries is one effective strategy that can be carried out right away without waiting for federation establishment, said Sumeth Laomoraphorn, the chief executive of CP Trading Group.

He said the government should also assure consumers of grain quality by inspecting the state's stockpile as often as they can.

While waiting for government measures, local rice packers said they plan to set up a call centre to allow consumers to make complaints if they bought substandard rice.

Laboratory tests will be conducted to check the grain quality following consumer complaints.

Mr Somkiat said the measures could restore consumer confidence in bagged rice, which has a market value of 30 billion baht, with 80% of that amount from the 128 members of the association.

Thais consume 6 million tonnes of rice per year, with 20% of the total from packed rice.

The rest comes from conventional trade, where traders often sell rice in jute sacks based on consumer demand.

CP Trading, which sells 1 million tonnes of Royal Umbrella packed rice a year, plans to use 80 million baht on marketing to restore its brand.

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