THAILAND

The price of rice and other basic consumer products is likely increase in the next three months due to higher operating costs and next year's pay rise for state officials, CP Intertrade chief operating officer Sumeth Laomoraphorn said on Monday.

"There is a tendency for rice prices to move up in the next three to four months. A five-kilogramme bag of rice could rise from 10-12 baht a kilo to 10-15 baht," Mr Sumeth said.

Reports said producers were keen to raise their  prices. They believed the Commerce Ministry would not extend  its freeze  prices as it would distort the market mechanism. The freeze is due to end on Sept 30.

Producers believed the government's approval of base salary increases for civil servants from  April next year  would increase their spending power.

Prices needed to be raised because of rising operating costs, particularly the increased minimum labour wage. Producers are expected to seek  the Department of Internal Trade's permission to increase their prices by the beginning of next year.

Internal Trade Department director-general Watcharee Wimuktayon said her agency will discuss the price of crude palm oil and vegetable oil soon, following producerss complaints about  rising global oil prices. The price  of crude palm oil had been raised from 22-23 baht per kilogramme to 25 baht per kilogramme.

"Producers are expected to ask for permission to raise their  prices once the price freeze ends next month," Mrs Watcharee said.