are concerned over their eligibility and have yet to fully understand
the process.
A joint meeting between Commerce Minister Porntiva Nakasai and
representatives of farmers, millers and exporters decided Friday to put
off the scheme until Nov 1 instead of this month.
"Most farmers are not confident they will be entitled to the new rice
price insurance scheme, particularly the requirement that calls for
farmers' paddy to contain a ceiling of 15% moisture,'' said Prasit
Boonchoey, president of the Thai Farmers Association.
"Most farmers' paddy contains more than 15% moisture, so we want the
government to ease this requirement.''
Most farmers exceeded the moisture limit because of an overly rainy
season and a lack of equipment to dry the rice.
According to Mr Prasit, a majority of farmers are concerned over their
eligibility for the scheme, as up to 70-75% of Thai farmers rent
farmland to grow rice.
At the meeting, Mrs Porntiva was non-committal about the farmers'
proposal, but instead asked the millers to buy rice from the farmers at
a fair price with the government pledging to compensate them for
interest rates of up to 3% on their loans.
For the country's 2009-10 main crop season starting in November,
insurance prices under the scheme for Hom Mali paddy have been set at
15,300 baht per tonne. Prices for general provincial fragrant rice were
set at 14,300 baht, glutinous paddy at 9,500 baht and second-crop paddy
at 10,000 baht.
The benchmark is 10,000 baht per tonne for 15%-moisture white rice
paddy. Farmers' production costs are estimated at 6,000 to 7,000 baht
per rai for white rice and 11,096 baht for Thai Hom Mali. The buying
price covers all costs and allows around a 30-40% profit.
The government will guarantee the prices quoted. If farmers sell to
millers or exporters for less, the government will pay them the difference.
The Commerce Ministry will announce reference prices every 15 days to
allow farmers to evaluate whether to sell their products.
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