Government seeks to extend low-cost shops scheme

WEDNESDAY, APRIL 11, 2012
Government seeks to extend low-cost shops scheme

The government will ask for another budget next year to continue the Raan Thook Jai retail project as inflation continues to threaten consumers.

The Commerce Ministry yesterday unveiled a Raan Thook Jai prototype. The shops will sell staples at low prices to help consumers crushed by the cost of living.

The government plans to spend Bt1.32 billion to set up and operate 10,000 Thook Jai outlets this year.

Commerce Minister Boonsong Teriyaphirom said the government now wanted to extend the project in the following years after realising that alleviating the cost of living is the measure the public desires the most.

Although the government has to allocate a large budget to the project, it should save consumers Bt6 billion a month on their living expenses.

The second year of the project would need a lower budget or less than Bt1 billion to operate the shops. After the government helped defray some of the costs of the project’s partners in establishing the shops in the first phase, the shops should be able to run smoothly.

The project was originally planned for only six months or until the end of this year, but since the shops will offer only 20 items at a discount of 20 per cent from market prices, it should be continued, Boonsong said. The government wants to reduce the pressure on consumers from inflation.

After the launch of the first Thook Jai shop on April 20 in Bangkok, about 2,000 will be introduced through next month in the capital and 15 other provinces. In the remaining months, 8,000-10,000 stores will be rolled out nationwide.

About 700 shop owners have applied to join the project.

Under the long-term plan, the government will make its own house-brand products for direct sale to the public. For the time being, consumer-goods manufacturers have been asked to sell their merchandise inexpensively at Thook Jai shops.

However, some companies will be asked to make products with the Thook Jai label so that consumers can easily see the difference between the government brand and others.

To protect the government’s intangible assets, the ministry plans to register its Thook Jai trademark with the Intellectual Property Department soon.