Rice policy: a problem for both sides

The government's troubled rice-pledging scheme is becoming a delicate issue for both sides in the current political conflict.

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Rice farmers from five provinces block the Pitsanulok-Nakhon Sawan road in protest at the caretaker government's failure to pay them for rice pledged long ago. THITI WANNAMONTHA

Rice policy: a problem for both sides

The government's troubled rice-pledging scheme is becoming a delicate issue for both sides in the current political conflict.

For the caretaker government, it is a major headache. Rice farmers, unpaid for rice they pledged months ago, are demonstrating, blocking roads and threatening to escalate their protests. In some cases they say they may even join the anti-government People's Democratic Reform Committee (PDRC) movement in Bangkok.

The PDRC could risk angering the farmers as well, however. Thaworn Senneam, Victory Monument rally leader, yesterday led protesters in laying siege to the Government Savings Bank (GSB) head office in the Saphan Khwai area to prevent the government from using the GSB's money to repay farmers under the rice-pledging scheme.

Thaworn Senneam, Victory Monument rally leader, meets with Government Savings Bank (GSB) official at thier head office in the Saphan Khwai area yesterday. PORNPROM STRABHAYA

Mr Thaworn and a group of protesters entered the bank to ensure all bank staff stopped working, and held talks with bank representatives for a half hour. "We will not allow the government to use people's money for the corrupt project," he said.

Mr Thaworn said the PDRC was not trying to prevent farmers from getting payment for their pledged rice, but the government should borrow the money from commercial banks and financial institutions rather than taking the money from the state-owned GSB. It is not yet clear what the unpaid farmers think of that.

Meanwhile, no quick solution seems in sight for the farmers' plight.

Caretaker Commerce Minister Niwatthamrong Bunsongphaisan said the government has received annual budget allocations approved by parliament, as well as loans from various sources to finance the rice-pledging scheme.

But the payments require EC approval as the constitution bans a caretaker government from making any decisions which could impose financial burdens on the next government.

Under the current 2013-14 main crop, which runs from October to the end of February, about 55 billion baht has been paid to farmers, Mr Boonsongphaisan said.

The government still needs to borrow another 130 billion baht to pay farmers who pledged paddy from the current main crop, he said.

About 180 billion baht is needed to finance the current crop.

Includes information from Post reporters.

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