Thai government ready to up rice prices under scheme in line with world prices

BANGKOK, June 22 (TNA) - Thai Prime Minister Yingluck Shinawatra says that her government will consider raising rice prices under its rice pledging scheme during the 2013/2014 harvest season if world market prices increased. Accompanied by several authorities concerned, including Lack Wajananawat, President of the government-run Bank for Agriculture and Agricultural Cooperatives (BAAC), Yingluck told the public during her weekly TV and radio address on Saturday morning that her government’s decision to slash rice prices under the rice pledging, from 15,000 baht per tonne to 12,000 per tonne effective from June 30, 2013, is aimed to create confidence in the Thai economy among international investors and monetary organizations and to also maintain the administration’s monetary and financial disciplines to limit a loss from the implementation of the scheme. Yingluck promised, however, if rice prices on the world market were increased later, her government would consider raising rice prices under the rice pledging scheme during the 2013/2014 harvest season, which starts late this year. Minister attached to the Prime Minister’s Office Varathep Ratanakorn acknowledged that the government has hired surveying companies to inspect every warehouse storing rice under the scheme in order to create transparency with severe punishment to be imposed on those found involving in any corruption. Besides, Varathep said, the Thai government is also considering encouraging local agriculturists to grow economic cash crops in areas considered more favourable than growing rice. According to the BAAC president, about four million Thai farmers have joined the government-sponsored rice pledging scheme during the past four rice harvesting seasons. The Thai Cabinet also resolved at its meeting last Wednesday to set the ceiling for rice purchases under the rice pledging scheme at 500,000 baht for each farmer household. (TNA)