Prime Minister Yingluck Shinawatra said in a recent interview that the government was successful in carrying out its paddy pledging scheme for the main rice crop last year as promised during its election campaign, noted Thai Rath, adding that the administration is now carrying out its pledging scheme for the second rice crop during the dry season.

However, whether the rice farmers will get 100% of the benefit from the scheme is debatable. According to Anant Dalodom, president of the Horticultural Science Society of Thailand, some Thai farmers are being exploited, as was often the case in the past.

"Rice farmers in many areas transport their paddy to rice mills but government officials refuse to immediately issue vouchers, citing a lack of personnel even though the Commerce Ministry specified that the vouchers will be issued within three days," Dr Anant said.

"When farmers don't receive vouchers, they cannot use them to draw cash. They are worried that their paddy at the rice mills may disappear or face other problems."

Dr Anant noted that this problem happened not only in remote areas far from Bangkok, but even in areas near the capital such as Ongkharak district, Nakhon Nayok and Bang Khla district in Chachoengsao.

Government supporters may argue that the delay is no problem and assure that farmers will get their money. "Can't farmers wait for a few more days? Twenty days should pose no problem."

However, the Thai Rath writer did not agree with this line of thinking. Millionaire politicians may not understand that a few days without cash is akin to absolute misery for impoverished farmers.

The government agreed to offer the same pledging prices for the second crop, ie, Hom Mali at 20,000 baht/tonne, other fragrant rice at 17,000 baht/tonne and ordinary rice at 15,000 baht/tonne.

Dr Anant notes that usually farmers do not get the full pledging price due to several factors including rigged weight scales and moisture-measuring scales as used by rice mills in collusion with officials from the Public Warehouse Organisation (PWO) or the Marketing Organisation for Farmers (MOF) which supervise the scheme.

"If a scale is off by 50 grammes per one kilogramme, a tonne of paddy for ordinary rice will fetch only 14,250 baht instead of the full 15,000 baht. Someone is pocketing 750 baht for every one tonne of pledged paddy," Dr Anant said.

To receive the full 15,000 baht/tonne, the paddy must not hold more than 15% moisture content. If the moisture measuring device is rigged to show higher moisture content, the weight of paddy is deducted at 15kg per tonne for every 1% moisture level over the 15% limit. For example, if the moisture content is 16%, one tonne of paddy is calculated to weigh 985kg. If the moisture content is 17%, one tonne of paddy is calculated to weigh only 970kg. Instead of receiving 15,000 baht, 450 baht will be deducted if the moisture content is 17%.

As if this is not enough, the pledged paddy must not have more than 2% foreign elements. If more, money is also deducted. All in all, farmers usually receive 12,000-12,500 baht for one pledged tonne of paddy, not the full 15,000 baht, notes Dr Anant.

Even though farmers may receive less than 15,000 baht a tonne, this is not the crucial problem. The main problem is the delay in issuing the vouchers.

On this issue, paddy pledging areas under the Agriculture Ministry's MOF do not seem to have a delayed voucher problem unlike those under the Commerce Ministry's PWO.

After the farmers receive the vouchers, they can cash them at the Bank for Agriculture and Agricultural Cooperatives (BAAC), which should take no more than three days. All in all, farmers should receive money for their pledged paddy within seven days.

However, all is not well with the second rice crop pledging scheme because some farmers under PWO supervision areas have had to wait nearly a month before receiving the vouchers.

Dr Anant notes that some government supporters do not know that practically all Thai farmers borrow from the BAAC and they have to pay the money back after selling their paddy by March 31 each year as it is at the end of the BAAC's annual accounting period.

According to bank regulations, any debtors who fail to pay back their debts within that period will not be able to borrow money for the following planting season.

"So if the farmers are told that vouchers will be delayed and they want to get cash quickly in time to pay the BAAC, they are forced to sell directly to rice mills at the much reduced price of around 11,000 baht/tonne."

Why is this problem occurring again and again? Thai Rath did not think that politicians are that stupid as to not know that officials are colluding with the rice traders to force farmers to sell paddy at low prices and then taking possession of cheap paddy and selling it to the government, reaping the profits to be divided by those in the know.

Thai Rath would not accept the excuse that the voucher delay is due to insufficient officials as they have just finished doing the rice pledging for the main crop and should be ready with personnel and equipment. Furthermore, the second rice crop is not as bountiful as the main crop. The work should be less and thus the cited lack of personnel is not credible.

Thai Rath also cited another corruption trick of officials and rice traders buying cheap fragrant rice from other provinces and then trucking it to Isan to sell as Hom Mali at the pledged price of 20,000 baht/tonne, making nearly 100% profit. Why truck it to Isan?

It is well known that the Hom Mali strain can only be grown in Kula Rong Hai fields in several Isan provinces. The Chao Phraya River basin cannot grow the Hom Mali variety.

Thai Rath notes officials could easily find out whether the fragrant paddy is Hom Mali or not. Another fact is that Hom Mali can only grow as the main rice crop due to the weather and plentiful rains during the rainy season in Kula Rong Hai fields.

There is a saying that Hom Mali is planted on Mother's Day (Sept 12) and harvested on Father's Day (Dec 5). In other months it is not possible to grow Hom Mali in Isan due to a lack of rain.

If there is still Hom Mali to be pledged in summer, it is very likely that it is another kind of fragrant rice from provinces along the Chao Phraya River with plenty of irrigation.

It is sad that Thailand cannot overcome the age-old problem of corruption associated with rice pledging, no matter what government is in power.

Source: Bangkok Post