Vientiane to announce reference rice price soon
Vientiane to announce reference rice price soon
Vientiane will complete the establishment of a reference price for rice and other foods as one of measures to keep the inflation rate in the capital stable amid worries of rising food prices over the coming months, according to a senior trade official.
“The capital's Industry and Commerce Department will try to finish making reference prices for rice this month and other food this year,” the department's Domestic Trade Division Chief, Mr Nouman Bhodisane told Vientiane Timeson Wednesday.
He said that the officials have collected information on production costs of rice per kg, finding out that the price of the grain in the capital was ranging from 1,900 kip per kg to 2,670 kip per kg depending on who supplied the information to the officials.
“Farmers who do not borrow money from the bank and use their own labour force said that the cost of rice production is 1,900 kip per kg” he said, adding that one who borrowed money from banks and hired workers said the cost of rice production is 2,670 kip per kg.
Mr Nouman said that the trade officials would continue to consult with rice mills about the cost of rice production before coming to a conclusion. He said that once the officials know the production price, it will be easier for them to set up a reference price for rice, which the sellers have to follow.
“There will be three categories of reference price. The first o ne is the basic rice price, which farmers use to sell to customers; the second is the price which rice mills have to follow and third is the price which retail sellers have to use when selling to customers,” he said.
Mr Nouman said the officials are expected to meet this Friday to discuss the reference price of rice, hoping to reach an agreement this month.
Vientiane authorities will have to endorse the reference rice price before putting it into practice. Anyone who fails to follow the reference price would be warned and fined, according to trade officials.
Mr Nouman said that the dome stic trade officials would focus on setting up reference prices for other food this year before turning its attention to other goods. He said that it was essential for the government to keep food prices stable.
Another mechanism which the Vientiane authorities can use to keep the price of rice stable is to stockpile it and resell when demand from the market rises. Sufficient supplies of the grain in the market w ill help to keep the price low.
Economists urged the government to monitor rice pricing over the wet season after finding out that rice production will fall this year due to natural disasters, which destroyed many agricultural production bases in the country.
vientiane times
