Bt28 billion marked for rice pledging

"Following the completion of the procedures, we will notify millers who need to register to participate. We'll also work with provincial governors to speed up the process," BAAC president Thirapong Tangthirasunan said yesterday.

The pledging procedures will be ready for the approval of the National Rice Policy Committee today, the BAAC's board on Monday and the Cabinet on Tuesday, he said.

The government hastily proposed the programme on Wednesday, after farmers threatened to stage protests over rice prices falling in recent weeks.

At the guaranteed price of Bt14,000 per tonne, BAAC expects to accommodate 2 million tonnes to be harvested this month while expecting the market price to move up soon.

Pramote Vanichanont, honorary chairman of the Thai Rice Millers Association, welcomed the initiative, saying it would help shore up prices. White rice costs Bt23,000 a tonne, up from Bt19,000 just two days ago.

Prasit Boonchuey, chairman of the Thai Farmers Association, said farmers would scrap the planned rallies so that the programme could start on schedule. However, rice is already being reaped in some areas such as Sukhothai, but farmers could sell the paddy rice at only Bt8,000. He called for the BAAC to take immediate action.

Deputy Commerce Minister Banyin Tangpaporn said Prime Minister Samak Sundaravej also asked the ministry to cancel the government's distribution of cheap bagged rice, saying it served to drag down the paddy price.

The ministry is reportedly split on the merits of the bagged-rice scheme. Some say that since it was launched, there is no longer a shortage, while others insist it distorts the market pricing mechanism and the extra supply would pull down domestic prices.