ABSTRACT
The rice export premium tax1 has been the subject of an ongoing debate in Thailand for the last two decades. It has also attracted attention from several economists, particularly as far as its incidence on the agricultural sector is concerned. This chapter analyses the rice price stabilisation policies in Thailand, with special reference to the export premium, during the period 1956-74. Since its introduction in 1955, the rice premium has been a specific tax, except during 1967-68 when it was experimentally converted to an ad valorem basis. The increasing frequent adjustments in premium rates, especially since the late 1960s, can thus be regarded as primarily designed for stabilisation purposes. The rice premium are designed to restrain intra-year price fluctuations due to seasonal factors. The rice premium also caused domestic rice prices to be more unstable than export prices.
