PM's Office Minister Varathep Rattanakorn has admitted for the first time that the 130-billion-baht loss estimate by a subcommittee overseeing the rice pledging scheme's accounting under the Finance Ministry for the previous two crops is valid.
Commerce Minister Boonsong Teriyapirom holds a meeting of the National Rice Policy Committee. PATTANAPONG HIRUNARD
But it remains to be seen whether an additional 80 billion baht in losses from the 2012-13 main crop will emerge, Mr Varathep said after meeting representatives from the Commerce Ministry, the Bank for Agriculture and Agricultural Cooperatives and the subcommittee.
Mr Varathep has been assigned by Prime Minister Yingluck Shinawatra to compile information from all relevant agencies amid a looming rift between the Commerce and Finance ministries, which have reported far different loss estimates for the scheme.
The subcommittee has estimated losses of almost 137 billion baht from the first two crops - the 2011-12 main and second harvest crops - well above the 34.84-billion-baht figure of the Commerce Ministry.
The subcommittee's loss estimate of more than 200 billion baht for the previous crops led to strong criticism, while Moody's Investors Service warned that such huge losses threatened Thailand's credit rating, although the company later walked back the comment.
The current rice pledging scheme was begun by the Yingluck administration to fulfil promises made during the 2011 election campaign.
The state guarantees the purchase of every single grain at a price of 15,000 baht a tonne for white rice paddy and 20,000 baht for fragrant Hom Mali paddy, which are 40-50% above market prices.
An unnamed source at the Finance Ministry insists there is no plan to change accounting methods for estimating the scheme's losses as requested by the Commerce Ministry.
The Commerce Ministry has asked the subcommittee to revise the accounting methods for the scheme, especially the calculation of losses from stockpiled rice.
The subcommittee, headed by Supa Piyajitti, the deputy finance permanent secretary, calculated losses from rice stockpiles by comparing the average price per tonne from the recent sales of stockpiles with the government's buying price plus expenses related to rice milling, storage, interest and other factors.
The Commerce Ministry has excluded current stockpiled rice, saying it has yet to be delivered and cannot be calculated, as well as rice sold under the state's low-cost food programmes.
The figure calculated by the Finance Ministry's subcommittee may be more realistic in determining the scheme's outlook.
After reports of potential heavy losses from rice pledging, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong on Thursday said the buying price could be cut to reflect the current circumstances.
The decision ultimately rests with the National Rice Policy Committee.
