(Faculty of Economics, Chulalongkorn University, Bangkok, Thailand)

Abstract: Rice is the most important agricultural product of Thailand. Thai government has been attempting to manipulate the rice market in order to lift Thai farmers out of poverty. Rice policies that have been used for decades (2010 to present), such as rice pledging and price guarantee, aims for the benefit of the farmer; however they significantly harm some participants. The purpose of this research is to introduce the new alternative policy to deal with this problem by analyzing the benefit of each participant in two cases; social maximization and individuals’ maximization. Linear programming and Goal Programming methods are employed in the study using data from various sources gathered mostly from 2012 to 2014 by a value chain study. The research results reveal that most of participants receive better benefits under the social maximization case. This research, therefore, suggests that the participants in Thai rice market; farmers, millers, and traders, should cooperate in determining the optimal amount of each type of rice productions so as to maximize their benefits.