Commerce Minister Kittiratt Na-Ranong has rejected claims that the Pheu Thai-led government's rice mortgage scheme will cost the country hundreds of billions of baht.

Mr Kittirat said yesterday he was ready to explain the details of the mortgage scheme to its opponents, including former deputy prime minister MR Pridiyathorn Devakula and renowned economist Ammar Siamwalla from the Thailand Development Research Institute.

"I would like to meet MR Pridiyathorn and Dr Ammar and other economists who disagree with the rice mortgage programme so I can hear their views and also help them understand [how the policy will work]," he said.

MR Pridiyathorn said taxpayers could be hit with a 250-billion-baht bill under the government's return to what he called a "loophole-ridden" rice mortgage subsidy programme.

The programme could also result in Thailand losing its status as the world's top rice-exporting nation, he said.

The Yingluck Shinawatra government next month will launch the rice mortgage programme offering 15,000 baht per tonne for unhusked white rice and 20,000 baht per tonne for hom mali jasmine rice.

Prime Minister Yingluck said yesterday recent criticisms over the scheme were likely based on old perspectives on the price mortgage scheme.

The policy resumed by this government is aimed at directly benefiting farmers without involving middlemen, she said.

Mr Kittiratt, however, said the government would improve the rice mortgage process to ensure transparency.

The 4-billion-baht budget which will be used in the rice mortgage scheme will come from revolving funds which will not affect the fiscal budget.

On opposition leader Abhisit Vejjajiva's comment that many farmers would not harvest enough rice to enter the mortgage scheme because of the widespread flooding, the deputy prime minister said the government was ready to assist flood-affected farmers.

"I assure that the government has improved practical processes for the scheme to ensure transparency," he said, adding that the National Rice Policy Committee's supervisory sub-committee has been established.

Members of the sub committee include members of the Royal Thai Police and the Department for Special Investigation.

He insisted that the minimum mortgage price of 15,000 baht per tonne of paddy is reasonable, reflects production costs, and is aimed to helping farmers attain a better quality of life.

"The [Democrat Party's rice price guarantee] policy offered very low returns to farmers, but I don't want to criticise it. I'm confident that this government can successfully implement the mortgage policy," he said.

He insisted the scheme would not violate the World Trade Organisation's rules because the mortgage scheme is not a subsidy measure for farmers and producers but rather a way to offer farmers more reasonable prices.

Phairote Isaraseripong, a Pheu Thai MP for Bangkok who was assigned by the party to explain the scheme, said that in the 10 years of the rice mortgage scheme, introduced in 1999 by the Chuan Leekpai government and revoked in 2009 by the Abhisit administration, a total of 140 billion baht was spent on financing the scheme.

However, the scheme covered several kinds of farm products. For rice in particular, only 8 billion baht a year was spent.

Source: Bangkok Post