Rice-Pledging Scheme to Provide Income Security for Farmers

(07/10/2011)

People involved with the Government’s rice-pledging scheme have been urged to monitor the project closely, so that farmers would fully benefit from the scheme. Prime Minister Yingluck Shinawatra said that the project is part of the Government’s urgent policies to be implemented in its first year in office in order to provide income security for farmers and improve their quality of life. She pointed out that the project would ease poverty and bring about a balanced economic structure for the country, so that Thailand would not heavily depend on international trade. Moreover, farmers would also have higher purchasing power. The rice-pledging scheme for the 2011/2012 production year was launched on October 7, and it will continue until February 29 next year. As for the southern region, the scheme will begin on February 1 and end on 31 July 2012. The redemption period is four months as of the month when the rice-subsidy program begins. Prime Minister Yingluck stated that rice is one of Thailand’s major cash crops, and 3.7 million families, or about 20 million people, are engaged in rice farming. The pledging price for paddy with moisture not exceeding 15 percent is 15,000 baht a metric tonne, and that for the Hom Mali paddy price is 20,000 baht a tonne. During her meeting with provincial governors and representatives from various agencies on October 6, Prime Minister Yingluck called on the people involved with the scheme to ensure transparency and prevent corruption by strictly complying with the criteria of the scheme. She said that the Government attached greater importance to rice releases and exports, as well, in order to ensure a balance between domestic and foreign markets. The objective is to provide farmers with the maximum benefit. She also stated that the Government is ready to listen to comments and consider suggestions on the project in order to improve this policy. Meanwhile, Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong said that the Government had prepared a fund of 430 billion baht to buy rice from farmers under the rice-pledging scheme. He said that, as many people needed better understanding about the project, the Government would proceed with its plan to give more explanations. It believes that the project will boost rice prices rather than bring huge losses, as believed by some people. In this regard, rice traders and exporters have been told to continue their business as usual, since the Government reaffirmed that it would not allow the rice-pledging scheme to affect their business at all.