Govt compensates BAAC for Bt91.8bn

business October 08, 2012 00:00

By The Nation

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The government has paid Bt91.8 billion to Bank for Agriculture and Agricultural Cooperatives (BAAC), as compensation for the rice-pleding scheme.


Boonthai Kaewkhuntee, an executive vice-president of the bank, said that of total Bt49.88 billion is part of the 2013 budget and the remaining Bt41.95 billion is reaped from stockpile releases. 
He assured that losses from the rice-pledging scheme would not affect the bank's operations, as this is part of the public service account which guarantees full government compensation in case of losses. PSA is set up to handle a specific government policy.
In the 2011-12 harvest year, 1.14 million farmers pledged 6.95 million tonnes of paddy rice with the bank, for an amount of Bt118.58 billion. For the second crop in 2012, 1.02 million farmers pledged 12.82 million tonnes for Bt190 billion.