The Thai Rice Exporters Association has voiced support for the income guarantee policy while the Thai Farmers Association labels the income guarantee and pledging strategies as empty promises.

At a seminar discussing the new government's rice policy and its pros and cons, two major parties, the Democrat and Pheu Thai, were given the opportunity to lay out its rice pledging and income guarantee schemes. Representatives from the associations including the Thai Rice Exporters, the Thai Rice Millers, the Thai Farmers, and the Thai Rice Packers attended the seminar.

Democrat Party campaign strategist Korbsak Subhavasu said the Democrat's principle behind its income guarantee scheme is to find ways to cut losses for farmers by guaranteeing 40 percent of the production cost and profit. The party promised to push it to 50 percent plus increase the transportation cost to rice mills to 200 to 600 baht depending on the distance.

On the other hand, Pheu Thai party-list candidate and former commerce minister Wattana Muangsuk pointed out the party's pledging policy aims to help farmers by pushing the rice reference price to 15,000 baht per ton, compared to the current income guarantee scheme which gives farmers only 4,000 to 5,000 baht a ton.

He remarked that over the two years under the Democrat Party's rule, there have not been any hikes in rice prices, but if Pheu Thai wins the election, it promises to make positive changes for the rice sector.

Acting Thai Rice Exporter Association President Chukiat Opasawong commented that the two parties' policies have their own pros and cons. However, he personally believes the policies do not reflect the current agricultural and economic climate and could be revised to provide more direct benefits for farmers.

Chukiat went on to suggest the government must step in to prevent any distortion in the market since Thailand's rice industry is falling behind Vietnam, which is its main competitor. He stated that excessive government intervention may drive up rice prices and will affect Thai rice exporters. Chukiat feels that the price difference when compared with Vietnamese rice should be in the range of no more than 40 to 50 US dollars per ton.

Meanwhile, Thai Rice Farmers Association Chairman Prasit Boonchoey said the pledging and income guarantee policies are all tactics to attract votes. He called the policies 'dream projects' particularly the Pheu Thai's promise to increase the rice price to 15,000 baht per ton. Regarding Pheu Thai's farmer credit card policy, Prasit said it may lead farmers further into debt.

The chairman added that the Rice Millers Association, the Rice Exporters Association and the Chamber of Commerce will convene to discuss strategies to improve the rice sector which will be proposed to the new government for implementation.

Prasit warned an inquiry will be launched if the new government does not follow through with promises made to rice farmers during the election campaign.

Source : TANN