The prime minister has approved procurement prices for the state's rice guarantee scheme. However, he has referred certain measures back for revision with concern that the budget would be too high.

Commerce Minister Porntiva Nakasai revealed that the National Rice Policy Committee, chaired by Prime Minister Abhisit Vejjajiva, has endorsed procurement prices for the government's rice guarantee program in the 2009 and 2010 crop years.

The price of jasmine rice with moisture not exceeding 15 percent will be guaranteed at 15,300 baht per ton, while the price of local fragrant rice will be guaranteed at 14,300 baht per ton, white rice at 10,000 baht a ton and sticky rice at 9,500 baht a ton.

At the same time, Porntiva said Prime Minsiter Abhisit has ordered the panel to revise the rice quota in this program alloted for each farmer at 20 tons. The commerce minister said the premier is concerned about the quality of rice from different locations. He suggested that the maximum guaranteed quantity should not be fixed.

Regarding a proposal to increase the maximum payment to 350,000 from 250,000 baht for each farmer, the committee said the government will have to spend more in the project, from 2.5 billion baht to 4 billion baht. This issue remains inconclusive.

If the National Rice Policy Committee approves the rice price guarantee measures next week, the Bank for Agriculture and Agricultural Cooperatives, the Agricultural Extension Department and the Internal Trade Department will implement the scheme, using part of a Strong Thailand stimulus budget totaling 105.9 million baht for operation.

Source: TANN