The government will start its rice mortgage programme in November, Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong said on Wednesday.

Mr Kittiratt was speaking after arriving at  the Ministry of Commerce this morning for his first day at work.
He told reporters at the ministry that the government will confirm the rice mortgage scheme in its policy statement and that crop mortgage prices will be set at 15,000 baht per tonne for non-glutinous unmilled rice and 20,000 baht a tonne for Hom Mali (jasmine) unmilled rice.

The minister said the rice mortgage programme will be continued until  rice market prices are equal to or higher than the pledging prices.

He said his ministry may assign the Public Warehouse Organisation to purchase rice from farmers for government-to-government exports. The government has no plan to stockpile a huge amount of rice before selling it, as it could result in a drop in the market price.

Asked about the policy to minimise the dependence on exports to boost the economic growth, Mr Kittiratt said there would be no planned reduction in exports.

Exports would still be promoted but the government would increase dependence on domestic consumption to drive economic expansion.

“If the government can increase the daily minimum wage of workers and the minimum monthly salary for university graduates, and can raise farm incomes, as planned, it will help increase next year’s gross domestic product by one percentage point," he said.

On concerns that the govrnment's populist policies could lead to high inflation, Mr Kittiratt said inflation is not scary.

“Why should the low-income earners have to suffer for keeping inflation at a low rate? The Pheu Thai-led government will increase people's incomes. This might result in a higher inflation rate, but it is not damaging.
"We should be glad that people will have higher incomes,” the minister said.

His ministry would not use measures to reduce the price of goods, but would act to prevent exorbitant pricing.
"This means that the people will not have to buy goods at unreasonably high prices," he said.

Mr Kittiratt said he will work to ensure a good understanding with manufacturers -- that the government does not plan to please people too much, or to overlook the business sector.

"The government will oversee commerce to ensure suitable production costs and product prices," he added.

Prime Minister Yingluck Shinawatra said on Tuesday that strengthening the domestic economy and raising household incomes are the foundation of the government’s economic policies.

The cabinet meeting yesterday approved a policy platform including 10 economic priorities, including  the daily minimum wage increasing to 300 baht, a new 15,000 baht minimum monthly salary for bachelor degree graduates working in state agencies, and plans to raise farmers' incomes.

Source: Bangkok Post