Pridiyathorn calls for abolition of rice scheme

 

He said the higher-than-expected losses could lead to a sovereign rating downgrade by rating agencies. 

"A one-year loss would not lead to a rating cut, as the public debt level remains low. What concerns me is how much losses the 2012/2013 harvest year will cost and what will happen in the next years. If the project continues, Moody's may assume that the scheme generates annual losses of Bt200 billion. The rating would be consequently cut," he said.

Moody's Investors Service last week voiced its concern on the losses, reportedly at Bt260 billion for the 2011/2012 harvest year. 

Pridiyathorn, a former deputy prime minister, said that the government should come up with a new scheme which will fully benefit farmers. He said that only 40 per cent of the cost falls into the hands of farmers.