Commerce Minister Boonsong Teriyaphirom yesterday asked the public to ignore export figures and other evidence indicating that government-to-government rice contracts are not real, while reiterating that the government next year could generate Bt260 billion in sales proceeds for spending on the agricultural price-pledging policy.

The government can gain Bt260 billion by next year by selling up to 11 million tonnes of its stockpiled rice, of which 7.32 million tonnes would go to four countries under G2G deals and the rest to Thai rice traders, he said. It will also make money from selling 2 million tonnes of tapioca chips to China worth Bt20 billion and releasing other crops that come under the pledging projects.

As an urgent step to promote Thai rice exports because of a sharp reduction in the first nine months, Boonsong will meet with exporters tomorrow to discuss the export problem and brainstorm ways to stimulate rice trading.

According to a report by the Thai Rice Exporters Association, rice exports fell sharply by 44 per cent to 5.04 million tonnes in the first nine months of this year. Exporters claim the drop in shipments was due mainly to the exorbitantly high pledging price of the government.

The ministry could not reveal the exact volume and value of the G2G contracts to the public as it is a sensitive issue for partner countries, Boonsong said.

However, the government has signed rice deals with four countries - China, Indonesia, Bangladesh and Ivory Coast - under six G2G contracts for a combined 7.32 million tonnes for shipment within a year, he said.

However, the sales volume will not come out from the government's side as it has sold the stocks on an ex-warehouse basis. Private exporters will be responsible for rice-quality adjustment and shipping charges, he said.

Boonsong refused to give the exact G2G price for each nation, saying only that the prices had to satisfy both sides.

The government's method of quoting rice prices at the warehouse door has not promoted any profit for a particular rice trader, he said. However, some rice companies may be able to export more rice this year as they have won contracts under the G2G deals to improve rice quality and ship to partner countries.

During his visit to rice millers in Ratchaburi, Boonsong said the government would impose strict measures to prevent rice farmers, millers or officials from cheating the rice-pledging project.

The Science Ministry in cooperation with the Interior, Commerce and Agriculture ministries will within two months set up a satellite survey of the country's paddy fields so that farmers will not be able to overstate their rice-pledging areas and harvests.

The government will continue to inspect rice and other agricultural pledging projects stringently to eliminate corruption by officials, farmers and traders, Boonsong said. So far, 25 cases of corruption in rice pledging have been reported by the Department of Special Investigation.

Boonsong showed no surprise when the Constitution Court turned down the complaint of academics over the government's pledging policy. He said the suit could have failed because the academics did not suffer any losses from the pledging scheme, while the scheme supports the government's policy to help farmers.

Academics from the National Institute of Development Administration and Thammasat University as well as some students petitioned the court last week to rule on the government's price-intervention scheme, which they claimed was unconstitutional.

Anan Dalodom, a former member of the Senate committee on agriculture and agricultural cooperatives, was disappointed with the Constitution Court's judgement, saying the pledging project would continue to damage the country and create huge losses.

The public should closely monitor the pledging scheme as it will continue to breed corruption, he said.

The government is studying using Don Mueang International Airport to store rice as it needs to prepare warehouse space for the huge harvest of an estimated 34 million tonnes of paddy rice that would enter the higher-than-market price-subsidy scheme from this year through next year

Source: The Nation