The cabinet is yet to discuss proposals to reduce the pledging price of rice, because it is waiting for the National Rice Policy Committee to provide further details on the existing scheme, Prime Minister Yingluck Shinawatra said.
The premier said on Tuesday that the cabinet had acknowledged proposals from the rice policy panel, but had directed it to come up with additional information on the rice scheme, and report back, before any decision on the future of the scheme is made.
Ms Yingluck said that a central committee would be set up to survey the amount of rice remaining in storage alongside a team from the Royal Thai Police.
The cabinet meeting on Tuesday acknowledged a report detailing financial losses from the rice scheme.
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The report said that figures on the amount of rice in the scheme and losses projected by the Ministry of Commerce and the sub-committee overseeing the rice scheme do now match up.
But there is still confusion over the quantity of rice left in stockpiles. Commerce Minister Boonsong Teriyapirom said he had authorised the rice policy panel and the sub-panel to once again double check the amount of rice and report their findings to the cabinet for consideration.
Asked about the possibility that the ceiling price of pledged rice in the next harvest season could be lowered due to the losses incurred by the scheme, Ms Yingluck did not reply, but said the initiative could only be deemed to have made a "loss" in accounting terms.
"In reality, we have to accept that the government’s rice scheme had helped increase income for farmers and mobilise the economy," she said.
PM's Office Minister Varathep Rattanakorn said that as of Jan 31, 2013, the government had incurred total losses of 136.92 billion baht for the main rice crop of 2011/12 and the second crop of 2012.
He said the government had taken a total of 13.42 million tonnes of milled rice into the system, or 21.78 million tonnes of unmilled rice. It has paid 337.3 billion baht to farmers. Government recorded the value of rice in stock at 155.97 billion baht, while the sold amount was valued at 59.14 billion baht.
PM's Office Minister Varathep Rattanakorn (right) holds a press conference to detail the losses incurred by the rice scheme. Photo by Chanat Katanyu.
Questioned whether Mr Boonsong should be removed from his post, the premier said the commerce minister will continue to perform his duties and that she will oversee and monitor works of all ministries.
“I will inform the public when it is necessary to make any change in the cabinet,” she said.
It was reported on Monday evening that the rice policy panel agreed to seek the cabinet's approval to reduce the ceiling price of pledged white rice to between 12,000 and 13,500 baht per tonne, instead of the current 15,000 baht.
The committee also wants to limit the amount of rice entering the scheme, a significant change from the current policy which accepts all harvested rice into the system.
Meanwhile, the Democrats attacked the government for attempting to cover up the losses made on the rice pledging scheme.
Democrat Party leader Abhisit Vejjajiva said the 139 billion baht loss figure quoted by the PM's Office Minister Varathep Rattanakorn was unclear. He said he believed losses for three harvest seasons would stand at around 260 billion baht.
Mr Abhisit warned that any move to solve the problem by lowering the rice pledging price, would minimise benefits of the scheme to rice farmers, while limiting quotas of rice in the programme would prevent some farmers from joining the scheme.
Democrat spokesman Chavanont Intarakomalsut said the admission of 136 billion baht losses by Mr Varathep showed that the loss figure cited by Mr Abhisit and his party is correct.
He said Mr Varathep had tried to lower the loss figure by admitting losses for only two harvest seasons, and omitting 84.07 billion baht losses posted in the 2012/2013 harvest season.
In addition, the government has allocated 30 billion baht to pay for loan interest incurred by the operation of rice scheme over the past two years, so including other management costs, the total loss figure could be well over 260 billion baht, Mr Chavanont said.
He urged the government to admit the larger loss figure, and resolve problems of corruption and a lack of transparency in the scheme. If the government decides to cut the rice pledging price or rice quota for the programme, the policy of offering 15,000 baht a tonne for all rice seeds will have failed, he said.