In explanation of the Government’s
decision to cut the rice pledging price, Prime Minister Yingluck Shinawatra
said that the price reduction was aimed at creating economic balance in several
dimensions.
In the weekly program “Yingluck
Government Meets the People” on 22 June 2013, the Prime Minister referred to
the Government’s rice-pledging scheme and its decision to cut the pledging price
from 15,000 baht to 12,000 baht per metric tonne, starting from 30 June 2013
onwards.
She said that the concept for the
scheme came about before the Government took office, as her political party had
conducted a study on how to ease poverty among the people, especially farmers.
The study indicated that agricultural zoning would help ease poverty among
farmers in the long run. This means that certain crops should be planted in
appropriated areas for higher yields with lower costs. As for an immediate solution,
the Government came up with the rice-pledging scheme to help farmers facing low
rice prices. The scheme, which aims to shore up rice prices, was included in
the Government’s urgent policies to be implemented in the first year of its
administration.
The Prime Minister pointed out that,
apart from enabling farmers to receive fair prices, the rice-pledging scheme is
also intended to improve farmers’ quality of life and ease the problem of
non-conventional debts. She said that the scheme had given a boost to the local
economy, as shown in the figures quoted by the Office of the National Economic
and Social Development Board.
However, she said, the decision to
slash the pledging price was based on the global increase in rice supply,
especially from Thailand’s neighboring countries, and the stronger baht.
Moreover, the Government needed to maintain fiscal discipline and create
several dimensions of economic balance. This would create confidence among
investors, as well.
Taking into consideration global prices
and fiscal discipline, the National Rice Policy Committee proposed the pledging
price reduction. The Prime Minister stated that when the global rice prices
increased, the pledging price under the rice-pledging scheme would be adjusted
higher.
She also touched on the issue of adding
value to Thai rice, saying that farmers should pay greater attention to
planting rice of high quality to fletch better prices. The Prime Minister said
that organic rice is now in great demand in Europe. Other economic crops, such
as tapioca and sugar cane, could be produced into energy sources, which are
also in great demand. The Ministry of Agriculture and Cooperatives would offer
suggestions on other alternatives for farmers, so that they would receive good
prices under the agricultural zoning program.
She urged provincial governors to visit
local residents in their respective areas to listen to their grievances and
provide them with better understanding about the issue.
Meanwhile, Minister to the Prime
Minister’s Office Varathep Ratanakorn revealed that the Government posted
losses of 136 billion baht from the rice-pledging scheme during its first year.
The calculation of the amount was based on the market price on the closing date
of 31 January 2013.
(thailand.prd.go.th)