Rice Production, Prices and Related Policy in Thailand
Nongnooch Poramacom

Abstract
Rice is the major export product of Thailand. How did the two different schemes affect to rice? How well prices did transmits among price levels at different selling points? The objectives were to compare farmers’ perceptions regarding different schemes, to calculate the return from rice production and to analyze co-integration on rice prices, comparing 5% white rice and 100% grade 2 jasmine rice of Thailand. The results will benefit the Thai rice industry by providing an understanding of the price transmission among price levels at different selling points. The results showed that farmers preferred the income guarantee scheme to the pledging scheme during the period 20102012. Since 2003, farmers have received a positive return of rice production. This study applied co-integration analysis to 5% white rice and 100% grade 2 jasmine rice of Thailand using the farm price and the wholesale price, and using the farm price and the FOB price. The farm price was affected positively by the wholesale price and the farm price was affected positively by the FOB price. The estimated coefficients associated with the explanatory variable agreed with a priori expectations, and were statistically significant. Signs of all estimated coefficients agreed with expectations and were statistically significant.

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