The Bank for Agriculture and Agricultural Cooperatives acted beyond its remit after issuing a warning about possible cheating in the state rice pledging scheme, says a top official.

Yanyong Phuangrach, permanent secretary of the Commerce Ministry, rejected allegations of a conspiracy between millers and farmers and a lack of transparency as claimed by the BAAC.

A committee had been formed to investigate the allegations of cheating, and was currently looking into some minor complaints.

The bank has a duty to implement government policy and should focus on opening accounts for farmers and making payments, Mr Yanyong said.

It has no authority to accept or reject individuals for the scheme, he added.

The pledging criteria are set by the National Rice Policy Committee, which is chaired by Prime Minister Yingluck Shinawatra. Mr Yanyong is the committee's secretary.

The government has so far stuck by its policy to accept all paddy field output for the pledging scheme.

However, if a farmer pledges an amount exceeding the average production per rai in his province by 20%, the BAAC must then verify ownership.

If that farmer is proven to be the owner, the bank must pay the money.

Mr Yanyong said more than 90% of farmers are small holders so each is likely to have a pledge value of less than 500,000 baht.

Source: Bangkok post