Ministry turns to rice millers for help

The Commerce Ministry yesterday turned to rice millers for assistance, asking them to pay about half of the rice-pledging amount owed to farmers.

The ministry came up with the proposal after thousands of farmers rallied in front of the ministry's compound in Nonthaburi.

The caretaker government has failed to secure funds to pay the rice farmers taking part in the pledging scheme.

However, protesting farmers rejected the proposal and demanded the government pay them within three days.

Caretaker Deputy Commerce Minister Yanyong Phuangrach said the ministry would ask the Thai Rice Mills Association to accept the pledging tickets from the rice growers and pay about 50-60% of the amount owed to them.

Mr Yanyong said the government would absorb the interest payments. The rice millers were expected to charge 0-9% interest rates.

The farmers would pay the millers when they are paid full amounts by the Bank for Agriculture and Agricultural Cooperatives.

Mr Yanyong said the caretaker government would seek permission from the Election Commission to get 1.2 billion baht of central budget funds to pay the interest.

According to the minister, the proposal could be implemented this month if the millers agreed to help.

Manat Kitprasert, president of the Thai Rice Mills Association, initially agreed with the proposal, but noted the millers would have to discuss the matter in detail.

Prasit Boonchoey, president of the Thai Farmers Association, said he doubted the proposal could be implemented, saying the caretaker government is not authorised to act as a loan guarantor.

He said rice millers would need to seek loans from commercial banks and they would need the government as a guarantor.

"If the government can't sell the rice, it should resign within 15 days. I believe the funds will pour in," Mr Prasit said.

He said the farmers were not happy with their talks yesterday with senior commerce officials. The farmers demanded the government open the rice warehouses for stock checking and speed up rice sales.

Wutthichai Duangrat, deputy permanent secretary for commerce, said the ministry could not respond to the farmers' demand and it could only forward the matter to Commerce Minister Niwatthamrong Bunsongphaisan.

Mr Prasit said the farmers would stay put in front of the Commerce Ministry for three days pending the payments.

A group of farmers in the North yesterday submitted a petition to the Office of His Majesty's Principal Private Secretary seeking help after the government failed to make payments.