World's Major Rice Exporting Nations to Co-Stabilize Price: Report

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Last updated at: (Beijing Time) Wednesday, December 05, 2001

World's Major Rice Exporting Nations to Co-Stabilize Price: Report

World's six major rice exporting nations, namely Thailand, Vietnam, China, India, Pakistan and Myanmar, have agreed in principle to form a cartel to strengthen their roles and stabilize world rice prices, the Commerce Ministry said Wednesday.

The main objective of the bloc, which will account for 70 percent of the world's rice exports, is to have fairer prices with fewer fluctuations in the global rice market and benefit rice farmers in member countries, the ministry said in a report.

However, the new organization will be functioning like a price-setting and market-manipulation body like the Organization of the Petroleum Exporting Countries (OPEC). Thailand is the world's top rice exporter, shipping about 6.6 million to 6.7 million tons abroad last year. Next is Vietnam, with about 3.4 million tons; China, with 2.9 million tons; the United States, with 2.7 million tons; Pakistan, with 2 million tons; India, with 1.3 million tons; and Myanmar with 300,000 tons.

Thai officials said after Thailand and Vietnam first agreed on such cooperation earlier this year, their rice export prices started stabilizing.

The new organization's first meeting is expected to be held here early next year.