Losing proposition
Re: "PM eyes rice hike plan with Vietnam," (BP, May 28).
Hopefully, Thailand and Vietnam will come to their senses and avoid wasting time and effort trying to control or influence the global price of rice.
It's pure folly to think that these two countries -- which together export far less than one-third of the total rice currently traded globally and a much smaller share of total production -- will be able to set higher prices.
Since there are many alternative exporters of rice, Thailand's efforts to set higher prices will inevitably result in buyers shifting to other suppliers, especially India and Pakistan, and continual erosion of market share for Thailand.
It's a naive and losing proposition to think that Thailand and Vietnam, with their relatively small market share of exports, can set prices to their liking in a global marketplace.
Authorities would be better advised to work with Thai rice farmers to help them shift to alternative livelihoods and higher-value crops, including organic and niche products, if they want to help the industry.
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