Rice millers seek higher warehouse rental fees

Rice millers yesterday proposed raising their warehouse rental fees for storing government rice by 20 baht to 75 baht per tonne in return for their participation in the government's rice-buying scheme. Kriengsak Tapananon, secretary of the Thai Rice Mills Association, said the millers were ready to participate in the state scheme if the government accepted their proposal. Millers claimed their income, particularly from rice polishing, has tumbled since the government replaced the long-used paddy-pledging programme with a price insurance scheme this year. They say they also have higher expenses from interest rates on loans for funds they have to place as collateral to the government if they participate in the rice-buying programme.Traders and rice millers mostly prefer the pledging scheme, due to their revenue from rice polishing and warehouse rentals for storing government rice. Yanyong Phuangrach, the permanent secretary for the Commerce Ministry, said the ministry would submit the millers' proposal to the premier and related agencies for consideration. To shore up paddy prices, the government has set up 42 buying units in 13 provinces. But so far only 12 mills out of 1,700 nationwide are participating. Thai rice prices, the benchmark for Asia, fell yesterday for an eighth week, to $538 a tonne, according to the Thai Rice Exporters Association. The price of 100% grade-B white rice declined 1.8% from $548 a tonne on March 3. The price of 25% broken rice was set at $450 a tonne, compared with $459 a tonne last week.