Rice pledgin scheme.

PM defends pledge scheme, blames graft on loopholes

• Published: 15/09/2012 at 03:06 AM
• Newspaper section: News

Prime Minister Yingluck Shinawatra yesterday defended the government's rice pledging scheme, saying it was by far the right policy even though it was not corruption-free.

Prime Minister Yingluck Shinawatra checks grains of rice as she takes part in a tour to inspect the rice pledging scheme process at Thanawat Pheutpol Rice Mill in tambon Plug Rad of Phitsanulok’s Bang Rakam district yesterday. PHONGTHAI

She said the government had rolled out a number of measures to tackle graft but some groups had sought out loopholes and capitalised on them.

The prime minister was speaking while inspecting rice stocks and the rice pledging scheme for the 2012/2013 season in Phitsanulok's Bang Rakam district.

She was also shown how the pledging process proceeded step by step. Ms Yingluck handed bai pratuan, or registered tickets to be exchanged for cash from state banks, to 10 farmers who pledged their crop yesterday.

Boonchu Sribua, a farmer, praised the pledging scheme, saying it was better than the Democrat-led administration's income guarantee policy.

Under the rice pledging scheme, the government takes rice from farmers as pledges. The pledging price is 15,000 baht a ton, but the price may be lower if the paddy contains high moisture.

The farmers can redeem the rice from the government if they can sell the produce at higher prices in the market.

In the previous administration's income guarantee policy, the Democrat-led government would set guaranteed prices on paddy, based on the market prices.

If the farmers sold their produce at prices lower than the guaranteed levels, then the government would pay the difference to them.

Ms Yingluck insisted Thailand would retain its rice export market position and said the government would not solely concentrate on market share.

"We will also make sure to focus on the prices to make sure that farmers are enjoying better prices," the prime minister said.

Ms Yingluck also vowed to look into problems related to the pledging policy and would ask the Commerce Ministry to adjust the pledging season to suit the farmers' second crop farming.

She said the government was also studying a grain storage system in Australia which is said to help maintain the quality of stockpiles for 10 years.
Ms Yingluck said that with current technology rice quality would deteriorate if it is stored for longer than two years.