Possible Cartel
Thailand has at times considered creating a rice cartel with Vietnam, Burma, Laos, and Cambodia. The purpose would be to control production and set prices similar to the OPEC cartel that controls production of oil. Thailand had even submitted a proposal to the other countries for the organization but it was retracted in 2008. Many analysts believe that such a price setting organization will not work due to the inability of cooperation between all of the countries and their lack of control over farmer’s production. Thailand is now looking at creating a more forum based international organization to discuss supplies and yields of rice. Noppadon Pattama, the foreign minister of Thailand, wants to call the forum the Council on Rice Trade Cooperation and was planning, as of May 2008, to invite; China, India, Pakistan, Cambodia, Burma, and Vietnam. Pattama has also said the potential new international forum will not replicate any of the work done by the International Rice Research Institute. The Institute was formed in 1960 to, “…improve the health of rice farmers and consumers, and ensure that rice production is environmentally sustainable” in the Southeast Asian region.
Read more about this topic: Rice Production In Thailand