The retail price of rice will increase by at least 25 percent next month. A bag of 5 kilos of white rice will cost 120 to 130 baht and Hom Mali (jasmine rice) 180 to 200 baht. Somkiat Makcayathorn, president of the Thai Rice Packers Association, makes this prediction. The price increase is the result of the reintroduction of the collateral system for rice. In this system, farmers mortgage their white rice for 15.000 baht per ton and Hom Mali…

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The Pheu Thai government's plan to revive the rice collateral system was heavily criticized by Democrats on the second day of debate over the government's statement. The system is ineffective, it favors wealthy exporters, it burdens the government with heavy losses and it may violate World Trade Organization (WTO) rules. The system was introduced by the Somchai government in 2008 and…

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