Thailand ask RI to lift rice ban

Thailand ask RI to lift rice ban

Bloomberg/Bangkok

Thailand will ask the Indonesian government to lift its ban on
rice imports, noting the policy will have a strongly negative
impact on Thailand's rice export target for this year, Thai
Commerce Minister Thanong Bidaya said on Monday.

"We have to urgently resolve this problem to prevent it (the
ban) from affecting our export target for this year," Thanong
said.

Thailand, the world's largest rice exporter, is targeting this
year to export 8.5 million metric tons of rice.

Indonesia has decided to extend its rice import ban until the
end of this year from June 30 because domestic rice stocks are
still sufficient.

The Indonesian government initially imposed the ban from
January 2004 to July 2004, then extended it in August of that
year until the end of 2004, due to expectations of robust
domestic output. In December 2004, the government extended the
ban to June 2005, due to official assessments of sufficient
stocks and a good rice harvest.

Indonesia was among the main buyers of Thai rice before
implementing the import ban policy. In 2003, Indonesia imported
763,690 tons of rice from Thailand but purchased only 155,739
tons from the country in 2004.

Thanong said Thailand's Prime Minister Thaksin Shinawatra will
discuss the issue of Indonesia's rice import ban policy along
with other economic and political issues with Indonesian
President Susilo Bambang Yudhoyono when the two meet in Bangkok
on Friday.

"We have studied (the market situation) and found that
Indonesia's rice stocks have declined. So why does the Indonesian
government continue to maintain the ban?" said Thanong.

According to Indonesia's Minister of Agriculture, Anton
Apriyantono, the rice import ban policy will be reviewed at the
end of the year, to see whether it will be extended again.