Rice money talks with govt falter

Rice money talks with govt falter

Farmer leaders walk out of crunch meeting

Negotiations between protesting farmers and the caretaker government over long-overdue payments under the rice-pledging scheme collapsed yesterday with the farmers threatening to block rice warehouses and prevent any attempts to tamper with stockpiles.

About 500 farmers rally at the Office of the Permanent Secretary for Defence, where caretaker Prime Minister Yingluck Shinawatra came to work yesterday. The farmers later sent representatives to negotiate with the caretaker government on failed payments for their pledged rice. Negotiations failed after many farmers walked out. Chanat Katanyu

The talks took place at the Office of the Permanent Secretary for Defence after hundreds of farmers marched from their base at the Commerce Ministry to the office which serves as a temporary office for the cabinet, to step up the pressure.

Some 20 farmer representatives sat down with the government’s team headed by caretaker Commerce Minister Niwatthamrong Bunsongphaisan.

Mr Niwatthamrong was joined by caretaker Deputy Commerce Minister Nattawut Saikuar, caretaker PM’s Office Minister Varathep Rattanakorn and defence permanent secretary Gen Niphat Thonglek.

Some of the farmer representatives broke off talks with the government after it could not say when the government could pay off the debts.

At one point in the 30-minute talks, Mr Niwatthamrong called on the farmers to ask financial institutions to release the loans so the government could pay off the debts.

He said that the Finance Ministry was ready to sign loan deals with the banks but there were attempts to block the borrowing plan.

His remark drew jeers from the farmers who said it was the government’s job to secure the funds.

However, Mr Niwatthamrong said the cabinet will today consider the National Rice Committee’s proposal to allocate 712 million baht for the farmers.

He said about 3,900 farmers are expected to be paid. However, the budget allocation needs endorsement from the Election Commission first.

Kittisak Rattanawaraha, a farmer leader from the northern region, told the meeting that farmers need to know when the government can pay.

''From now on we’ll do what we are good at. We will surround the rice warehouses across the country and keep the government from messing up with the stock,'' Mr Kittisak told the farmers after leaving the meeting room.

A farmer rose during the negotiations and told the government to return the pledged rice if it could not pay.

''I am a red-shirt supporter. I heard the government is willing to return the rice. I want mine back, all 21 kwian of it.

''When we can’t count on the government, why should I vote for you? I am ready to bring the scale,'' said the farmer.

Rawee Ruangruang, a farmer representative, called on the government to sell the rice to secure funds to pay the protesting farmers.

If the government did not release the stocks to raise funds, the problems would get worse as the new crop is due in four months.

Another farmer said if there is really nothing the government can do to help the farmers, it should step down and let a new administration handle the problem.

While Mr Nattawut was trying to explain the rice-pledging scheme process, some of the representatives walked out.

Later at the press conference, Mr Niwatthamrong called on the farmers to plead with the banks and unions to approve the loans for the government.

He also said the cabinet will not consider allocating 1.2 billion baht of central budget funds to pay the interest for the farmers who seek loans from rice millers.

The ministry last week floated a proposal in which it would ask the Thai Rice Mills Association to accept pledging certificates from the rice growers and pay about 50-60% of the amount owed to them.

The government would absorb the interest payments as the rice millers were expected to charge 0-9% interest rates.

The commerce minister said yesterday the proposal has yet to be tabled to the cabinet for consideration because the rice millers can proceed with the scheme.

He rejected the farmers’ call for the caretaker government to resign.
''If the government resigns, it may violate the constitution and it will be long before a new administration is formed. So there is no resolution over when the money can be paid.

''It doesn’t mean the money will come right away when the government quits. The constitution says a government must come from an election,'' he said.

He added that he expects to hold talks with another group of rice growers today and this group may have other useful suggestions.

Caretaker Prime Minister Yingluck Shinawatra reportedly followed the negotiations at the Office while farmers returned to the Commerce Ministry to plan their next moves.

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