Prime Minister Surayud Chulanont promised yesterday to suspend any move that would see indebted farmers' land auctioned off by state agencies or enterprises that hold mortgages as collateral for loans.

Currently, 330,000 indebted farmers are on the verge of losing their land because of mortgage loans they have been unable to repay.

Independent academic Somkiat Pongpaiboon said if the Farmers' Reha-bilitation and Development Fund was assigned to buy these debts from moneylenders, it would cost about Bt6 billion.

Surayud, however, explained that his government could take immediate action by suspending impending land auctions by state agencies or enterprises.

He said Deputy Prime Minister and Industry Minister Kosit Panpiemras would ensure the suspension through debt negotiation and other measures.

Surayud said most farmers owed money to the Bank for Agriculture and Agricultural Cooperatives (BAAC) and other government-owned banks.

Although the government had no authority over private banks, the PM believed the government would be able to ask for their cooperation to help some farmers who owed money. "In the meantime, we will also continue to look for other measures," he said.

Surayud admitted it was a shock to learn that more than 38 million rai of farmers' land had been mortgaged. He was speaking after more than 50 small-scale farmers from 15 provinces called on him to air their concerns. The premier, Kosit and Agriculture and Cooperatives Minister Thira Sutabutra met with the farmers' representatives for an hour.

On other planned measures, Surayud said the Farmers' Rehabilitation and Development Act should be amended to better respond to the current situation. He said the Agriculture Ministry would take care of the law amendment, while the fund's members could help the process.

In response to the farmers' plea and Surayud's policy, Kosit said guidelines would also be urgently laid down on how to replace board members for the Farmers' Rehabilitation and Development Fund, who are due to complete their term on December 2.

Son Roobsoong, who formerly chaired the fund's board, said a review on how to select new members was necessary. The board has seven members but only two are farmers' representatives.

Academic Somkiat said relevant authorities should look into the BAAC's operations. It was now Bt800 billion richer than when set up more than 30 years ago. "It has become much richer and it still continues to take land from farmers," he said.