Two agricultural cooperatives and two exporters interviewed pointed out some weak points of the pledging
scheme; for example, the tendency for Thailand to lose its position as the top rice exporter in the world, and the
problems of rice stock management and selling. This study applied co-integration analysis to 5% white rice and
100% grade 2 jasmine rice in Thailand using the farm price and wholesale price, and using the farm price and
FOB price. The farm price was affected positively by the wholesale price and the farm price was also affected
positively by the FOB price. The estimated coefficients associated with the explanatory variable agreed with a
priori expectations and were statistically significant. The signs of all estimated coefficients agreed with
expectations and were statistically significant. The coefficients of the farm price with wholesale price and of the
farm price with FOB price were both higher for 5% white rice than for 100% grade 2 jasmine rice, indicated that
the price transmission in the case of 5% white rice was more efficient than for 100% grade 2 jasmine rice.