Fewer farmers than hoped for have joined the government's rice-subsidy scheme, pledging only 62,000 tonnes since it started on October 7.

"The rice volume is lower than expected, largely because of the severe flooding," Finance Minister Thirachai Phuvanatnaranubala said yesterday.

As of Monday, 6,856 farmers have mortgaged their rice to the government, he said after meeting with the Bank for Agriculture and Agricultural Cooperatives (BAAC).

The government has lent Bt920 million to those farmers for pawning their rice. The farmers can redeem their rice later from the government but they never do.

The government has set up 218 trading points to accept rice from farmers in 33 provinces.

Only unmilled rice with moisture not over 15 per cent is eligible for pledging.

The government has promised to buy Hom Mali fragrant rice for Bt20,000 per tonne, ordinary fragrant rice for Bt18,000 per tonne, long-grain and sticky rice for Bt16,000 and 100-per-cent short-grain and sticky rice for Bt15,000.

Five-per-cent rice is worth Bt14,800 per tonne, 10-per-cent rice Bt14,600 per tonne, 15-per-cent rice Bt14,200 and 25-per-cent rice Bt13,800. Those rates are considerable higher than market prices.

The government will put in place a policy encouraging farmers in the flood-hit areas to plant only two crops a year instead of three. That would minimise losses from severe floods.

Farmers whose fields are completely inundated on a frequent basis should switch to other crops such as oil palms by planting them on the banks of canals. Several canals will be dug in the plains so farmers can grow palms on the higher spillways.

Critics claim that the rice-pledging programme will benefit only a few local farmers but many farmers in exporting countries such as Vietnam or India. They will gain from rising rice prices in the global market.

The BAAC has allowed flood victims to suspend debt instalments for three years. Each can get a new loan of up to Bt100,000 to rehabilitate their devastated farms. Those who lost their lives will have their debts forgiven and their families will receive compensation worth Bt10,000 from the BAAC. If their house is destroyed the bank will pay compensation of Bt20,000.

So far 412,354 families who are also customers of the BAAC have been affected by the floods, while 5.1 million rai (816,000 hectares) of rice paddies have been damaged, 451,058 rai of other crops have been washed away and 109,098 head of livestock have perished. And 46,912 rai of fish farms have been washed out.

Source: The Nation