Rice-pledging scheme leaves farmers confused

WEDNESDAY, SEPTEMBER 07, 2011
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Rice-pledging scheme leaves farmers confused

Farmers are confused about the government's price-pledging policy as details reveal a wider range of rice and quality instead of just two types of rice and two pledging rates.

Farmers are yet to learn more on the scheme's conditions, which are different from the propaganda. The Pheu Thai Party had announced a pledging price of Bt15,000 for white paddy rice and Bt20,000 for jasmine rice. However, plans unveiled yesterday reveal many pledging rates for white paddy rice.

For instance: Bt15,000 for 25-per-cent white paddy rice with 15-per-cent humidity as standard pledging, Bt15,200 for 100-per-cent white paddy rice and Bt14,000 for 25-per-cent white paddy rice.

Only a few groups of people are aware of the various conditions.

Under the new price proposals tabled yesterday, the pledged price of 100-per-cent white paddy rice would be increased from Bt15,200 to Bt15,500 a tonne; the price of 5-per-cent white paddy rice would be Bt15,000, and the price of 10-per-cent white paddy rice would be lowered from Bt14,800 to Bt14,500; 15-per-cent white paddy rice would be down from Bt14,400 to Bt14,000, and 25-per-cent white paddy would be lower from Bt14,000 to Bt13,500 a tonne.

The price for jasmine rice would be quoted at Bt20,000, while provincial fragrant rice would be Bt19,500 per tonne. The price for sticky paddy rice would be Bt16,000, while Pathum rice would be at Bt17,000 a tonne.

The National Rice Policy Committee will today make a final decision on the price proposals for all kinds of rice grains.

Prasith Boonchuey, president of the Thai Rice Farmers Association, said the government must explain clearly about the wide range of pledging prices.

"Some farmers believe that they would get Bt15,000 a tonne for any grade of white rice. The farmers can accept the different price rates, but the government must be more transparent," he said.

Somkuan Kamnueng, a farmer in Nakhon Sawan, said farmers grew different grades of rice and normally got different rates of payment. However, the current government has campaigned on the policy that every farmer would get Bt15,000 a tonne.

He said the government should make clear whether it wants to encourage farmers to grow high-quality grains so that they will get good returns from the pledging.

Banjong Tangjitwattanakul, vice president of Thai Rice Millers Association, said it proposed increasing the pledged price for 100-per-cent white paddy rice from Bt15,200 to Bt15,500. On the other hand, it also proposed reducing the price of 25-per-cent white paddy rice from Bt14,000 to Bt13,500 per tonne.

On Tuesday, Commerce Minister Kittiratt Na-Ranong promised that the programme would start on October 7.

The National Rice Policy Committee will tomorrow call the first meeting on plans to prevent corruption and release of the government's rice stockpile. The meeting aims to minimise the impact of the policy on market price.

Deputy Commerce Minister Poom Sarapol said the government would seek cooperation from the Royal Thai Police, the Department of Special Investigation, the inspector-general of the Office of the Prime Minister, and the governor to inspect rice mills regularly to prevent corruption under the pledging project.

It is expected that about 1,000 millers will join the pledging programme this year. Each miller will get Bt500 for every tonne of polished rice and Bt55 for stocking rice every month.

The ministry will encourage millers to set up video-surveillance systems to prevent millers selling rice meant for the government and substituting other rice grains, such as rice from neighbouring countries.

The government will also consider gradually releasing rice stocks during the pledging period.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the pledging scheme would result in Thai rice exports dropping as buyers reject the skyrocketing prices.

As of yesterday, 100-per-cent white rice jumped from US$596 (Bt18,000) a tonne on August 31 to $629 a tonne, while the price of 5-per-cent white rice surged from $578 to $613 a tonne. The price of jasmine rice was up from $1,089 to $1,106 a tonne.