At a seminar at Kasetsart University's Kamphaengsaen Campus, Thaksin told a group of 3,000 farmers that he would assign the Agriculture Ministry and Kasetsart University to find ways for them to produce more good quality milk at a lower cost.

Farmers might be organised into groups to raise cows and have a central milk powder factory, he said.

The director-general of the Livestock Development Depart-ment and financial experts would study the real cost of producing milk, Thaksin said.

Thaskin said the cost of milk production was Bt9 per kilogram when the central purchasing price was set in 1998 at Bt12.50 per kg. But the seminar was told that the cost was now Bt11.56 per kg, Bt2.96 more than last year, according to a January study.

Many of the farmers said they could not sell their milk at the set price.

"The government will quickly solve this problem so as to make the price just and the production circle completed with milk powder and butter factories," he said.

Thaksin said his government had been trying to help farmers stand on their own feet and improve their standard of living but the government had been distorted all along by certain people. He said he felt tired of critics alleging he had damaged the country and spent public money to please farmers and poor people in order to win votes.

Thaksin claimed this was in contrast to reality. The Bank of Thailand governor had said the economy had remained strong despite the oil crisis and political turmoil because the government had taken care of the economy's foundations - be it with the "Small Medium Large" [village fund] scheme or the prices of agricultural goods, Thaksin said.

"Today Thailand has become a lender instead of a debtor, but people still try to distort it all the time."