CHIA MENG TO TAKE RICE COST HIKES IN ITS STRIDE

       Chia Meng Marketing, producer of Hong Thong rice, plans to maintain retail prices until year-end despite a surge in some operating costs, particularly global oil prices, which have affected transportation costs.
       Managing director Sopan Manathanya yesterday said the company's transportation and packaging costs were all linked to oil prices.
       Oil prices have increased more than 10 per cent since early this year. However, rice traders cannot adjust the retail prices of bagged rice, as they come under the price-control list of the Commerce Ministry.
       "Rice is on the ministry's product watch list. If producers want to increase prices, they must seek ministry approval.
       "Whether we adjust the retail prices of our rice will depend on the government's subsidy policy, as well. We'll consider the market situation before deciding," she said.
       Meanwhile, the government's policy of opening bidding for a big lot of rice through the Agricultural Futures Exchange of Thailand for the first round early this month made an impact on the market's jasmine-rice price. Traders offered high prices to win the bidding amid the rice shortage. Therefore, Chia Meng had to purchase jasmine rice at prices higher than normal.
       Chia Meng secured 100,000 tonnes of the total 300,000 tonnes of jasmine rice in the first round of bidding. The government will open a second round of bidding for jasmine rice tomorrow, and the company may join the bidding.
       Sopan said Chia Meng Marketing planned to increase promotion campaigns and marketing events, for which it usually joins hands with department stores, in order to boost sales this year. It has not decided on discounting the retail prices of rice for promotion campaigns this year.
       She said Chia Meng Marketing recently launched V-Life by Hong Thong, with three formulas: Gaba, Triple King and Pink Fragrant. V-Life by Hong Thong is targeted at health-conscious consumers.
       "We're interested in developing rice for health-conscious consumers, because Thais have paid more attention to this variety of rice. The market value of this segment last year was Bt450 million, up more than 30 per cent from 2007, while that of jasmine rice increased at a lower rate of 10 per cent," she said.
       The combined value of Thailand's bagged-rice market last year was Bt20 billion, of which Bt450 million was in the rice-for-health segment. Sopan predicts the market value of the new segment could reach Bt1 billion in three years. She added that Chia Meng Marketing now had an 11-per-cent share of the rice-for-health segment but expects to increase that to 20 per cent this year while doubling sales in the segment to Bt100 million after introducing V-Life by Hong Thong.