The huge rise in the cost of rice in Thailand is also due to the Thai export policy.

While most rice exporters have introduced caps on exports, to shore up domestic stocks and slow inflation, Thailand remains the only exporter without controls.

Allowing the (so called) free market to rule results in ordinary Thai people paying the international market price for their staple food.

It should also be pointed out that there is a speculative element at play on the international rice markets. Again, some fat cats somewhere making a fast buck.

To this point there is no indication of the Thai rice exporters, or ministers, taking action to control the price of rice domesticaly. They defend this by saying that introducing controls will harm the long term market.

It should also be pointed out that the average Thai rice farmer will only benifit marginaly from the price increases. This is because they (generaly) dont own storage facilities and have to sell their rice as soon as it is harvested (when wholesale prices drop due to sudden market supply).

The price rises are now having a marked effect on many many Thai familes. There have even been stiring of industrial unrest (khorat) as workers are starting to demand pay increases to cover their food budget.