The Nation news website reported that suspected insurgents had lured police to the scene by robbing and assaulting Wilawan Satikorakul, owner of a grocery shop in Narathiwat's Chanae district.
Police rushed to the scene only to find that Wilawan was already brought to a hospital nearby.
When police and villagers were standing at the grocery shop, a bomb exploded at 10:40 a.m. (0340 GMT), killing five at the scene and injured another 12. All the killed were local villagers living nearby, while 10 of the 12 injured were police.
Initial police investigation said that the explosive was hidden near a plastic vegetable bucket and the insurgents may have hidden near the shop and triggered the explosive after seeing police and villagers gathering at the scene.
Police said the bomb was assembled inside a cooking gas cylinder and detonated with a mobile phone.
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