The government plans to increase rice purchases from farmers at assured prices by 60% as production rises.

The Rice Policy Committee, chaired by Prime Minister Abhisit Vejjajiva, yesterday overruled a decision the previous day by a panel chaired by Commerce Minister Pornthiva Nakasai.

Mrs Pornthiva had said buying another 1.5 million tonnes of second-crop paddy under the government price-intervention scheme was impractical, given the severe budget constraints it now faced.

The committee decided yesterday to go ahead with the plan to acquire an additional 1 million to 1.5 million tonnes of paddy in the second crop at 11,800 baht per tonne.

Mrs Pornthiva had said earlier that poor economic conditions would prompt the government to be more cautious in its spending plans

The government already plans to buy 2.5 million tonnes of paddy, including 100,000 to 200,000 tonnes of glutinous grain, in the second-crop season between March 16 and July 31, at a cost of 36 billion baht. The guaranteed price is also 11,800 baht per tonne.

Procurement of unprocessed rice may now be between 3.5 million and 4 million tonnes in the current season. Second-crop paddy output this season could be 8 million tonnes, compared to 6.5 million tonnes in the same season last year, according to the Agriculture Ministry.

The revised plan will probably be proposed to the cabinet next week.

Source: Bangkok Post