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Published on February 16, 2008

The president of the state-owned Public Warehouse Organisation, Pisut Charakorn- kul, announced yesterday he would resign from the position effective this month.

Pisut cited personal problems with his family as the reason for the resignation. However, it is likely also due to strong pressure over the illegal rice problem involving President Agri Trading, which occurred during the former Thaksin regime.

Pisut said he decided to quit the position without political pressure. The decision was due to his being unfamiliar with the government's working system after being there for almost a year. Pisut took up the post on March 7 last year. His resignation was approved by the board of the PWO on Wednesday and will take effect on February 25.

The PWO is a key agency handling the default of the government rice-pledging programme.

President Agri Trading failed to remove a huge rice stock of 1.7 million tonnes from the Commerce Ministry's warehouse. although it won the contracts.

The cash-strapped company has been investigated and saddled with a huge fine of about Bt24 million a day. However, the case has not been finalised. The company shut down its operation last year.

There has also been concern over the new government's policy to increase the high guarantee price for the coming pledging programme under its populist policy. A pledging price that was too high would cause trouble for the market in the long run.

For instance, if the government set too high a guarantee price under the rice-pledging programme, it would face a higher burden for rice stocks of Bt200 to Bt500 a tonne.

A source from the ministry said that the current government is planning to increase the pledging price by Bt1,500 to Bt2,500 a tonne for the new rice harvest season. The previous government set the guaranteed rice price at only Bt300 above the market price.

Pisut is the 32nd president of the organisation. He followed Nobpasul Angkathavanich, who was dismissed in 2005 for violating ministry rules by awarding contracts to four rice inspectors.

One achievement under Pisut's tenure was his help for the government in saving more than Bt60 million by suspending the second-crop rice pledge this year, as the price of rice in the market was very high.

Petchanet Pratruangkrai

The Nation