'We will never restrict exports,' Somsak Prisnanantakul told Reuters in an interview. 'We have ample stocks to meet our domestic demand and export commitments. The domestic supply situation is improving.'

Commerce Minister Mingkwan Sangsuwan said on Tuesday he was confident Thailand could export more than 9 million tonnes of rice this year, compared with 9.4 million tonnes last year.

But industry officials said Thai rice exports could slow in the second quarter because of high prices and would likely climb in the third quarter when prices ease to some extent.

Export bans by India and Vietnam have more than tripled rice prices in Asia more this year, triggering panic buying in some countries and social unrest in others.

'The panic in energy markets has also fuelled rice prices, which might encourage farmers to grow more energy crops, resulting in falling food output,' Mr Somsak said. 'When the panic subsides, Thai rice prices will fall further.'

Recent signs of an increase in Thai supplies have helped to cool the market slightly, with the benchmark Thai 100 per cent B grade white rice falling to $990-$998 a tonne this week, from last week's record of above $1,000 (S$1,350) a tonne.

US rice futures also tumbled 5 per cent on Wednesday as the easing of fears over supplies triggered an exodus of speculators from the market, which has lost 15 per cent of its gains in the past week. But the market rebounded slightly on Thursday.

Production outlook
Mr Somsak said Thailand would produce 30 million tonnes of paddy in 2008, about the same as last year, but the government would aim to increase rice growing areas in coming years to boost output of the staple.

Thailand is aggressively developing its irrigation system in a bid to expand rice production in crop area of up to 4.8 million hectares by 2010, from the current 4.3 million, Mr Somsak said.

'Increasing plantation and better irrigation systems will help Thai farmers to grow rice all year round as we don't need to rely on seasonal rains anymore,' he said.

Thailand said earlier this week the government would release additional rice stocks gradually in the domestic market from its stockpile of 2.1 million tonnes in a bid to cool prices.

However, Thailand would not aim to maintain a higher stockpile beyond 2.1 million tonnes at any point of time, despite expectations of higher production in coming crops, Mr Somsak said.

'A rice shortage in Thailand is impossible as we can grow plenty of rice every year. So I think stocks of 2.1 million tonnes are enough,' he said.

Despite increasing supplies coming onto the Thai market, Thailand will not join the Philippines' May 5 tender because the Thai government will not endorse private exporters, a senior Commerce Ministry official said.

Under the rules for the tender of 675,000 tonnes of rice, suppliers must either be a government agency or be endorsed by their respective governments, said Apiradi Tantraporn, head of the ministry Department of Foreign Trade. -- REUTERS