Farmers despair of ever being paid for rice

Farmers despair of ever being paid for rice

Farmers say they are giving up hope of ever receiving long-overdue payments from the government's rice-pledging scheme.

A group of rice growers spoke yesterday of their despair during their months-long rally on Chaeng Watthana Road against the caretaker government, saying they have little faith in an earlier promise by the Bank for Agriculture and Agricultural Cooperatives (BAAC) to settle the huge debts within a year.

The government owes farmers about 90 billion baht for rice pledged under the 2013/14 crop season which ended in February.

“The government cannot acquire enough money to pay us because of its caretaker status,” said Rawee Rungruang, leader of a network of farmers from western and lower northern provinces.

The government must take responsibility by resigning, which would pave the way for a new government to step in and raise money for farmers, he said.

Mr Rawee said farmers spend 5,000 baht to produce one tonne of rice, but fetch only about 5,500 baht from millers.

Despite the government offering 15,000 baht per tonne — about 40%-50% above market price — for grain under its pledging scheme, Mr Rawee said the programme is riddled with problems.

"Many growers claim there is huge corruption, and that few benefits go to farmers who join the scheme," said Kittisak Rattanawaraha, a leader of farmers from the North.

The 15,000-baht offer is generous, but such spending cannot avoid causing a detrimental impact on state coffers, he said.

Buai Duangdet, a farmer from Kanchanaburi's Phanom Thuan district, said the programme could be beneficial if it were free from graft, but she has nothing to do now except wait for the money owed to her and attempt to raise enough cash to plant a new harvest.

“We have no idea what to do about another career,” Mr Rawee said.

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