This findings indicated that the price determined by market mechanism. However, the hospital has higher rice prices than normal prices. This the respondent’s
reason sells to hospital, another reason reason is because the location near from production price so can reduce the transportation cost. In various studies, farmers,
local assemblers and millers that they were price takers. The millers’ buying price was their expected selling price deducted by their handling cost and a certain profit
4.3 Rice Pledging Policy
This part will discuss about the kind of policy in term rice commodity in Thailand, the concept of rice pledging policy and the impacts of this policy. The study
revealed that respondent for information of rice pledging policy is a government officer at Department of Agricultural Extension DOAE in Ratchaburi province. The
name of respondent is Mr. Pathomchai Gajasuta as agricultural extensionist in DOAE.
4.3.1 Rice policy in Thailand This study revealed that policies in term rice commodity in Thailand are rice
pledging program that will discuss in next part, financial support to farmers who suffer disaster. For financial support, officer go to field for evaluating how much
farmer get loss. In term rice policy in Thailand, the government also has program about credit card for farmers. This program provides loan to farmer who follows the
program. In addition, the government also provide training as education program to farmers that aims to reduce production cost or increase efficiency input use.
4.3.2 Rice pledging program This findings indicated that the rice pledging program is policy to support the
selling price with sets the rice price at farm gate level is higher than market price. The farmer who under the program sell rice to rice mills that also under the program. This
program aims to increase the farmer income. There are 98 percent farmers in Ratchaburi province included the program and only the large scale rice mills that
included the program about 13-15 unit of rice mills. The study revealed the process to apply into program, especially for farmer.
The farmer who want to join the program, have to go directly to office at district level
for applying the document and register. After that, officer will prove the document and set up the meeting with farmers to inspection. Furthermore, the officer inspects to
the field for checking the number of land holding, the rice variety, cultivation time and harvest time of paddy. If farmers meet all requirements and inspection process already
finished, agricultural office provide a certificate to farmer that means farmer already become member of program.
4.3.3 The impact of rice pledging policy The study revealed that rice pledging program have destroyed rice marketing
system. The government has implemented this program to intervere in market mechanism. This program causes the government be the largest rice trader, because
many farmers sells their paddy to government. According to Poapongsakorn 2010, increasing pledged paddy can reduce the rice supply were handled by the market, thus
reduces the local traders and central paddy markets operated by private. This survey indicated that government has a large expenditure of rice pleding
program. The budget of program not only involves difference between pledged paddy price of program and market price, but also milling cost and storage cost also handled
by government. According to Isvilanonda and Kao-ent 2009 in Chulaphan, et. al 2012, increasing pledged paddy price 30 percent higher than market price results the
expenditure of program lost from US 0.24 billion in 2001 to US 1.31 billion in 2005.
This findings indicated that importing countries has stopped to purchase rice from Thailand. It buys from Vietnam. This program affects the competitiveness of
Thai rice. According to Poapongsakorn 2010, the higher pledged paddy price makes Thai rice more expensive than Vietnam rice. In addition, government did not want to
sell rice that it also affects to the Thai rice quality. The rice pledging program also decreases rice quality. It causes the paddy is too long storaged in warehouse. The
program gradually reduce the incentive to provide high rice quality.
4.4 Strengths, Weaknesses, Opportunities, and Threats of Rice Pledging Policy
