Rice farmers from Ayutthaya rally

The Nation

As expected, more than 200 rice growers rallied at the Commerce Ministry yesterday, calling for the government to expand its guaranteed volume of rice for the second-crop harvest season and continue its pledging programme.

Rice growers from Ayutthaya province yesterday morning marched to the ministry, urging the government to increase the amount for the present crop-pledging scheme. They said the government's limited volume of 4 million tonnes of white paddy rice was too small compared with production and that it should increase it to 6 million-8 million tonnes.

As of yesterday, the programme had attracted 3.8 million tonnes of produce and will soon hit the target of 4 million tonnes. Meanwhile, the volume of paddy rice not yet pledged with the programme is estimated at 3 million tonnes.

Thai Rice Growers Association vice president Vichian Phuanglumjiek said the government should not limit the rice quota in the pledging scheme and that the government had no rice production figures for each province.

"We [farmers] are suffering because of quota limits on rice entering the pledging scheme. Millers buy paddy rice at Bt6,000 to Bt7,000 a tonne, but our production costs, including rental fees, exceed Bt7,000 a tonne," said Vichian.

The scheme's present guarantee price for 30-per-cent-moisture paddy rice is Bt10,800 to Bt12,000 a tonne.

In Ayutthaya, rice millers have refused to purchase rice from farmers under the pledging project, due to limits on both quotas and government financial support. Another 360,000 tonnes of rice will be cultivated soon, but the farmers cannot participate in the government's pledging scheme.

Vichian has threatened that more farmers from 46 provinces will rally at the ministry and Parliament if Prime Minister Abhisit Vejjajiva, Commerce Minister Porntiva Nakasai and the Cabinet refuse to help them solve the problem of excess rice.

"Rice growers from other provinces could lead thousands of tractors in sealing off the roads if the government cancels price-guarantee projects without any support measures," he said.

Vichian agreed with the government's plan to change its pledging system from buying the total volume of rice to establishing a minimum price for farmers to sell rice in the market. The government will have to compensate for farmers' losses if they cannot sell rice at an appropriate price.

However, he expressed concern about whether this government could stick to that policy, because the proposal had been discussed under many administrations but always failed in the end.

Deputy Commerce Minister Alongkorn Ponlaboot yesterday listened to the farmers on behalf of Porntiva. He said the government would discuss the matter after the premier and Porntiva returned from the Asean meeting in South Korea.

A rice-industry source said the government would continue to face more problems, because not only had farmers lost their incomes from the pledging scheme, but also millers, middlemen traders and local politicians.

"Some groups of rice farmers have been set up by millers and politicians, because they've lost their benefit from the pledging. The government must urgently come up with new measures to avoid conflicts of interest rather than focus on price guarantees, which are unsustainable in helping farmers," the source said.

Internal Trade Department director-general Yangyong Phuangrach yesterday said the department would call an urgent meeting with rice millers and exporters today to search for ways to solve the rice problems.