Energy price restructuring a priority for NCPO
The junta has vowed to accelerate energy price restructuring as one of its key economic platforms, saying its first move will be to appoint new members to the National Energy Policy Committee (NEPC) this week. The NEPC would be tasked with accelerating the overhaul of the energy price structure and promoting renewable energy. The junta stressed the need to please the public about energy prices.
Rosana Tositrakul, a former Bangkok senator who is also one of 11 members of the newly established Thai Energy Reform Watch, requested that the NCPO urgently nullify the Somchai Wongsawat government’s November 2009 resolution, which she claims caused the unfair distribution of local LPG supplies that benefited the petrochemical industry instead of prioritising households. LPG for industry is 30 baht per kg, 21.40 baht for transport and 22.10 baht for households, but only 16 baht is charged to the petrochemical industry, said Ms Rosana. However, petrochemical producers argue that the lower price they pay is due to bulk purchasing contracts between each petrochemical producer and LPG suppliers. “The NCPO should at least bring the price for the household sector down to that of the transport sector,” Ms Rosana said, adding that the NCPO should distribute LPG to households first, before other sectors.
Meanwhile, a junta working panel expects to spend two months gathering the public' s views on reform before submitting its findings. Public forums will be an essential way to hear the people's views. Ways to end the political divide, combat the use of violence and resolve double standards within the judicial system are some of the issues to be discussed.
Thailand set to recover position as world's No.1 rice exporter
Rice exporters and academics are still divided over ways to raise paddy prices, which have now tumbled to only 7,500 baht per tonne, half of the 15,000 baht offered by the Yingluck Shinawatra government in the controversial rice-pledging scheme. It is estimated that as much as 15-16 million tonnes of rice are now kept in state rice stocks, with exporters expected to take 3-5 years to dispose of these stocks.
Experts say that the state should do a nationwide rice inspection and inventory of the rice stock, assessing the amount of pledged rice, the amount exported, the amount withdrawn from state warehouses, the amount of good-quality or rotten rice, the amount that has disappeared and the total expenses incurred. Once the exact amount of rice stocks is clear and available to the public, it will help disperse market speculation and ultimately raise rice prices.
There are calls for a rice board with representatives from rice farmers, millers, rice packers and traders, exporters and state officials, that would take care of the country's rice management system and formulate ways to cut rice farmers' production costs. Rice policy has normally been used as a political tool and exploited by political parties which in the end distorts the rice market.