Thailand's moves to safeguard its interests come in the wake of a Texas-based company's registration and sale of a rice product under the name 'jasmati', a term coined from the 'jasmine' and 'basmati' rice varieties.

This, agricultural and trade experts here say, is meant to mislead customers into thinking they are buying Thailand's famed fragrant rice, and may eat into rice exports at a time when the country needs all the dollars it can earn.

The same U.S. firm, RiceTech Inc, had obtained from the U.S. Patent and Trademark Office in September a patent for basmati rice, which have for centuries been grown in India and Pakistan.

Thais, including King Bhumibol Adulyadej, are worried that jasmine rice may be the next victim. The king has been quoted as saying Thais were sad to discover they might have to seek permission from foreigners to cultivate their own rice variety.

''I have been closely following this issue and have reported to His Majesty that 'jasmati' has no genetic relation with our jasmine rice,'' Mechai told a conference organised by the International Rice Research Institute (IRRI) and the Thai agriculture ministry last month.

Thus, the Thai government has begun work to obtain a patent on jasmine fragrant rice under the Hom Mali trademark -- before any foreign firm beats the country to it.

The agriculture ministry has also proposed a plant varieties protection bill to Parliament, in order to prevent what many experts call ''biopiracy'' that occurred in the case of RiceTech.

The agriculture ministry says RiceTech developed its strain for 'jasmati' from those obtained from the Philippines-based IRRI and made them suitable for growing in the southern United States.

But IRRI says that 'jasmati' was derived not from Thai rice but from della, a variety that originated in Italy and contained genes from fragrant-rice strains.

Nevertheless, Newin Chidchob, deputy minister of the agriculture ministry, said the plant varieties protection bill would require foreign companies needing Thai grain and plant varieties for commercial use to pay Thailand a royalty of at least 5 percent of total sales.

Meanwhile, quality certificates attesting to genuine Thai rice are being issued by the commerce ministry to guarantee that Thai rice is protected before the bill's passage. Newin also said Thailand was prepared to raise the issue with the World Trade Organisation for arbitration if needed.

Last month, hundreds of Thai rice farmers held a protest in front of the U.S. embassy here. ''Selling other rice varieties or even Thai jasmine rice grown in your country as 'jasmati' defames our farmers, destroys our rights and deceives your own consumers,'' they said in a letter to the U.S. ambassador.

To guard against commercial exploitation of strains by multinational firms, IRRI director-general Robert Havener has suggested that Thailand register a geographical trademark to make it clear that genuine fragrant jasmine rice came from Thailand and nowhere else.

He said precedents exist for champagne from France and for Scotch whisky.

While Thai officials are worried about the cultural value of jasmine rice -- they are motivated by a desire to prevent a loss of market share due to 'jasmati' and similar products in the future.

The economic downturn has made Thailand turn to agricultural experts to bring in foreign currency -- and rice is the first priority. The country is among the biggest rice exporters in the world, and jasmine fetches the steepest price among Thai rices.

Despite the crisis, Thai rice exports have soared and reached 3.6 million tonnes between January to mid-July 1998, up 37 percent from the same period last year. Officials said Thailand is looking at a 27.08 percent of the world market.

The government has been discussing with exporters to determine whether market prospects had been damaged by the proliferation of varieties like 'jasmati', said agriculture department director- general Ananta Dalodom.

If Thailand's export markets are affected, action should be considered against the foreign companies involved, he said.

But Witoon Panyakul from BioThai, a Bangkok-based NGO, says patenting might not help Thai farmers because only new inventions are protected under patent law.

''Jasmine rice is something invented long time ago by local farmers and it is considered community property. Patenting has nothing to do with protecting community's rights over it,'' he explained.

''What we need is a law that make sure that these rights won't be violated and that local communities would get benefit out of it,'' he added.

And while Havener says 'jasmati' was not derived from IRRI rice lines that had used Thai strains, he did say he was worried about duplication of plant varieties, jointly researched by IRRI and countries that own plant varieties, for commercial purposes.

Apart from having registered IRRI as trademark for its products since 1994, Havener said the institute was also trying to find other measures to protect plant varieties and ensure less duplication for commercial purposes in the future.

Thailand has donated 5,400 samples of germplasm to IRRI. Given the 'jasmati' row, agriculture experts say the government would seek an assurance from IRRI that Thailand would be protected from organisations wishing to patent rice varieties developed from germplasm originally from it.

Some local experts, however, dispute IRRI's explanation that 'jasmati' did not use the institute's strains.

Newin claimed that the United States had grown the IR 841 rice variety, which is a hybrid grain of IR 262 variety and Thai Khao Dawk Mali (jasmine rice) 105, and which was developed by IRRI.

IRRI used the Thai Khao Dawk Mali 105 to generate 1,480 cross- strains of rice which were later given for planting in at least 22 countries, he said. He added that Jasmine 85, a variety first developed at the IRRI in 1966, entered the US in 1989 and was later grown to compete directly with imported jasmine rice.

(END/IPS/AP-DV/PD/JS/98)