Simmering row comes to the boil

The simmering conflict between Commerce Minister Mingkwan Sangsuwan and Finance Minister Surapong Suebwonglee appears to have worsened following the government's latest attempt to shore up paddy-rice prices.

Sources close to the commerce minister said Mingkwan was now under intense pressure as Prime Minister Samak Sundaravej apparently took away his responsibility for the multibillion-baht rice-pledging scheme while the minister was abroad.

Mingkwan returned home on Thursday from Peru, where he had attended the Asia-Pacific Economic Cooperation forum's ministerial conference.

Prior to his return, the premier announced that the Bt28-billion scheme would be handled by Bank of Agriculture and Agricultural Cooperatives (BAAC), which is under the finance minister's jurisdiction.

Finance Minister Suraphong is understood to be backed by the ruling People Power Party's largest group of MPs, led by Newin Chidchob, who is currently banned from politics.

The sudden change of rice policy has also confused the rice export sector, with some orders already cancelled.

"There's a signal that our clients are changing their mind. Some orders have been cancelled abruptly including one with Nigeria, though delivery was being prepared," said Chookiat Ophaswongse, head of the Thai Rice Exporters Association.

He said the latest announcement that 1.1 million tonnes of government rice stocks would be unloaded had also prompted buyers to delay new purchases, expecting a falling price.

He said the association would seek a meeting with Mingkwan to discuss the problem, as the minister was absent when the Cabinet hastily approved the rice-pledging programme, which requires the government to release its existing stock.

Yesterday, the National Rice Policy Committee also stopped the distribution of cheap bagged rice, as initiated earlier by Mingkwan, claiming that the programme could hurt rice prices.

Finance Minister Surapong, who is also deputy premier, said the programme was no longer necessary.