Though the government's controversial rice-pledging scheme has incurred higher losses than initially projected, it will continue with marginally lower prices - from Bt15,000 per tonne to between Bt13,500 and Bt12,000 for future crops, Commerce Minister Boonsong Teriyapirom said after a key meeting late yesterday.

The Bt13,500 - 12,000 price range is based on a 15 to 20 per cent reduction from the Bt15,000 per tonne figure and 10-per-cent addition to the price of rice in the global market. The figure will yield a 25 per cent profit for farmers based on criteria set by the Agriculture Ministry.

Boonsong said the Bt130 billion loss, confirmed by a subcommittee handling the scheme's accounting, was beyond the Bt100 billion projected. He cited "fiscal discipline" as the main reason for the government's decision to reduce the rate from Bt15,000.

Conflicting information over the scale of the losses from the rice-pledging policy continued to cause confusion among critics and the public after the meeting of Finance and Commerce officials yesterday.

The Finance Ministry's subpanel put the loss at Bt130 billion, a figure that PM's Officer Minister Varathep Ratanakorn, who supervises the scheme, said was acceptable. However, the figure is based on only two crops of rice, and excludes the huge output cultivated from the third and latest crop.

The loss of Bt130 billion was the same amount incurred in the first year when a similar scheme was implemented under the previous government, the subpanel said yesterday.

Panel chairperson, Finance deputy permanent secretary Supa Piyajitti, insisted the calculation method was accurate and the same as that used in a scheme implemented under former finance minister Korn Chatikavanij.

She said a majority of the National Rice Policy Committee (NRPC) members approved of this method. The panel had earlier estimated a loss amounting to Bt260 billion, and later reduced it to Bt220 billion, calculating on three crops of rice since the Yingluck government took power and initiated the scheme.

Varathep said before the panel's meeting ended late yesterday he accepted the panel's estimate at a loss of Bt130 billion, which was calculated based on the output of just two crops. He said more figures relating to the scheme would result from the government's future budget request and readjustment.

Claim disputed

The panel reportedly does not accept a claim by the Commerce Ministry that 21.5 million tonnes of rice husk awaiting milling was part of the overall amount in the government's custody, which would likely contribute to future revenues under the scheme, saying that only ready-to-eat rice seeds counted and there was not proof to verify its existence.

According to Varathep's calculation, the 21.5 million tonnes of rice, whether they are husks or seeds, should be worth around Bt40 billion, which should be deducted from the panel's estimated loss of Bt130 billion.

Supa called an urgent meeting yesterday morning, at the request of Varathep, to verify how the panel came up with figures of a loss unfavourable to the Yingluck government. Varathep had earlier presented a figure he said was newly discovered regarding the 21.5 million tonnes of rice husk undeclared to the panel. Supa and the NRPC countered that only ready-to-eat rice seeds could be used as a legitimate amount of rice in the government's custody, and Varathep finally failed to present the documents proving the existence of the 21.5 million tonnes.

Speaking before hearing of the panel's stance on the 21.5 million tonnes, Varathep said the amount was harvested in the last crop. It was still undergoing milling and sale, and it could contribute to future revenues.

The panel said the scheme saw a loss of Bt42.9 billion during the first crop, and another loss of Bt39.9 billion during the second crop. The scheme under the Yingluck government has spent Bt196 billion in operating costs and earned Bt59.14 billion so far.

Boonsong had earlier said government-pledged rice seeds sold in 5-kg bags at major superstores were safe to eat despite being treated with pesticides after the safety time limit. The chemicals are safe after 48 hours for the first type, and 57 days for the second type, and eating this rice after the safety period is not hazardous to health, he said.

Source: The Nation