Rice scheme must go on hold, govt says

Rice scheme must go on hold, govt says

Further help for farmers in doubt

The caretaker government cannot continue its rice-pledging scheme in the main harvest 2013-2014, as it no longer has the authority to oversee the scheme, caretaker Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong says.

Mr Kittiratt suggested the next government take care of the scheme to help farmers nationwide.

The minister on Friday testified as the last witness in a hearing before the National Anti-Corruption Commission (NACC) in Nonthaburi province.

Mr Kittiratt insisted the scheme was accountable and transparent and that caretaker Prime Minister Yingluck Shinawatra, as  the chairwoman of the National Rice Policy Committee, had done everything by the book. The NACC is investigating whether she overlooked complaints of corruption.

The chairman of the Thai Farmers Association, Wichian  Puanglamjiak, has asked the government to withdraw an additional 40 billion baht from the central budget to cover farmers' overdue payments.

Caretaker Deputy Commerce Minister Yanyong Puangrat has agreed to Mr Wichian's proposal, though Mr Kittiratt insists cabinet has yet to discuss it.

Earlier, the Election Commission (EC) approved the withdrawal of at least 20 billion baht from the central budget to pay the farmers.

Caretaker Deputy Finance Minister Thanusak Lekuthai said he personally backed Mr Wichian's proposal, but agreed the caretaker government had no authority to approve the budget.

Should the caretaker government be willing to consider the request, the matter would have to go to cabinet and be then submitted to the EC for approval, he said.

Mr Thanusak said the government had yet to acquire 90 billion baht in loans to pay farmers who sold their paddy between December 2013 and January 2014. The period concerns the main rice harvest season, which ran from October 2013 to February 2014.

"If the caretaker government can really withdraw an extra 40 billion baht from the central budget, it will be a good thing. But the question is, how can we seek the other 50 billion baht to pay farmers?'' he asked.  

Meanwhile, Northern  Farmers Network chairman Kittisak Rattanawaraha said farmers in the North were complaining about payments by the Bank of Agriculture and Agricultural Cooperatives (BAAC).

Mr Kittisak said the BACC has offered a six-month debt moratorium for farmers affected by delayed rice payments, but some northern farmers claimed the bank has failed to abide by its offer.

It deducted their debts from the amount of money allocated by the caretaker government to them through the bank.  

"Instead of receiving 200,000-300,000 baht from selling rice to the scheme, some farmers were left with only a few thousand baht after the bank deducted their debts. They told me the money they have left is not enough for them to pay off the loans they took out from loan sharks,'' he said.  

Mr Kittisak said many farmers are still struggling. If the government languishes in caretaker administration mode, some could end up in desperate straits.

BACC's deputy managing director Somsak Kangtheerwat said the bank was deducting debts in some cases, but only with farmers' consent.

The six-month debt moratorium offered by the bank can be applied only to farmers who have not yet received any money under the scheme. BACC staff had discussed the debt deduction proposal with farmers and they understood what was involved.

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