U.S. asked to halt rice subsidy

U.S. asked to halt rice subsidy

Nopporn Wong-Anan, Reuters, Bangkok

Thailand, the world's largest rice exporter, will urge the
United States, the third largest rice exporter, to cease subsidy
schemes to shore up global rice prices, Thai Prime Minister
Thaksin Shinawatra said on Saturday.

Thaksin said in his weekly national radio address he would ask
U.S. President George W. Bush during a visit to Washington at the
end of this month to stop subsidizing its rice farmers in order
to help boost rice prices worldwide.

Thaksin is due to meet Bush in Washington on November 30 to
discuss bilateral relations and fights against terrorism.

"A worldwide price slump this year is due to price cutting
among rice producing countries, so there have been talks among
major producers on how to shore up the prices," Thaksin said.

"When I visit the United States, I would ask them not to
subsidize rice because the U.S. rice subsidy is a cause of global
price drop."

Rice traders say a global surplus has depressed the price of
low grade rice this year and this is likely to continue into next
year.

Thaksin said if Washington agreed to cease its domestic
subsidy schemes, global prices would eventually rise since
Vietnam, the world's second largest rice exporter, had already
fully cooperated with Thailand.