Thai PM mulls farmers' proposed rice pledge price

BANGKOK, June 20 (TNA) - Thai Prime Minister Yingluck Shinawatra says that her government is considering a proposal by local farmers to raise the paddy pledge price to 13,500 baht per tonne, from 12,000 baht per tonne based on the Cabinet's resolution on June 19. In response to local farmers’ call for the Thai government's paddy pledge price of 13,500 baht per tonne, instead of the Cabinet's resolution on the reduced paddy pledge price from existing 15,000 baht per tonne to 12,000 baht per tonne, effective from June 30, 2013. Yingluck told journalists on Thursday that she has assigned the National Rice Policy Committee to consider the proposal, saying that the consideration will be based on the financial discipline, farmers’ actual costs, rice varieties and quality and rice prices on the world market. Yingluck acknowledged that she has ordered provincial governors, the National Rice Policy Committee and relevant ministers to, in the meantime, explain the Cabinet's decision on cutting the rice pledge price to local farmers. According to the Thai prime minister, the Thai Cabinet’s reduced rice pledge price decision on June 19 takes effect on the second rice crop and is aimed at reflecting global market prices, while maintaining the national financial discipline. The prime minister promised that her government would raise the pledge price if global rice prices increased, insisting that her administration will continue the rice pledging scheme to help local farmers, and that the government wants to see a reform of the Thai farm sector in the long run, covering a agricultural zoning. Asked how the government would help rice farmers, the Thai premier said she has ordered the Ministry of Agriculture and Cooperatives and provincial governors to persuade farmers to grow other plants, namely energy crops like cassava and sugarcane with high market demand, so that local farmers could make more profits from such crops. Meanwhile, government-run Bank for Agriculture and Agricultural Cooperatives (BAAC) announced that it will provide financial support to local rice farmers, including a cut in lending rates, extended periods for their existing loans and even an approval of new loans for them. (TNA)