Bangkok, Aug 10 - Farmers in Thailand have asked the government to extend its rice-buying scheme to stem a collapse in prices since its intervention programme expired on July 31, the farmers association said on Monday.
"The scheme expired, but there's around 2 million tonnes of paddy rice left on the market that the government should take care of, otherwise prices will fall further," said Prasit Boonchuey, chairman of the Thai Farmers Association.
Paddy rice has fallen to around 7,500 baht ($220) per kg, well below the intervention price paid to farmers of 11,800 baht per kg, he said.
"Some groups of farmers have threatened protests if the government doesn't respond to the request," said one farmer in Ayuthaya province, Thailand's central rice-growing area.
Thailand, the world's biggest rice exporter, was estimated to have produced around 8 million tonnes of paddy in the second crop harvesting from March to July, according to Ministry of Agriculture data.
However, farmers in well-irrigated areas in central Thailand may have produced more than the government expected, Prasit said.
"The farmers' proposal is expected to be submitted to the National Rice Committee and the cabinet over the next few weeks," said a Commerce Ministry official.
The government usually sets up rice intervention schemes twice a year to drain supply out of the market.
It has in the past bought paddy direct from farmers and processed it into milled rice to be kept in stocks, waiting to be sold later.
However, it plans to introduce a revamped scheme in November under which it will set a benchmark price and compensate farmers if they sell their grain to millers for less than that.
The change is partly because its stocks have soared and it is costly to hold the grain. Stocks have risen to the equivalent of 7 million tonnes of milled rice, the highest ever, which could add to the downward pressure on market prices.