Central Plains farmers are turning around

Farmers on their way to Suvarnabhumi turned back yesterday in Bang Pa-In (Ayutthaya) after the government promised them they will be paid next week. The abrupt decision – the 6 farmers had left the Central Plains in a convoy of XNUMX agricultural vehicles on Wednesday – came as a big surprise to the farmers who have been camping near the Commerce Department in Nonthaburi since Feb. XNUMX.

Kittisak Rattanawaraha, a leader of farmers from the North and Northeast, suspects that Central Plains farmers have been pressured to return. 'We have spoken with farmers from Uthai Thani. They didn't want to go home, but politicians who didn't want them in Bangkok forced them.'

The farmers turned back after rally leader Chada Thait (pictured), former MP of the Chartthaipattana (coalition) party for Uthai Thani, said the government would start disbursements next week and all payments would be made within six weeks.

He reportedly spoke with Prime Minister Yingluck, Minister Kittiratt Na-Ranong (Finance) and Minister Varathep Rattanakorn (PM's Office). According to a source, Yingluck was present for a short time, but the two ministers were allowed to take the hot coals out of the fire.

Some farmers wanted to drive on because they doubted the government would keep its word this time. But eventually the ranks closed and it was back home. If they don't get paid next week, they will still come back to Suvarnabhumi, where they were allowed to park in the parking lot for long-term parkers.

Pornpun Boonyaritpoonsiri, a protesting farmer from Pichit, wonders if the decision to return is a political game. "I feel there are efforts being made to prevent the farmers from joining the farmers for the Department of Commerce."

Aree Malison, a farmer from Chachoengsao, suspects that the government is playing the two groups off against each other.

Financiering

BP's website yesterday reported a plan by Minister Kittiratt Na-Ranong to sell rice bonds with an 'attractive interest' to citizens in order to pay farmers. They would mainly be sold to small investors. Large institutional investors and public companies are not the target group. A decision on this plan will be made within seven to eight weeks.

I can't find anything about it in today's paper. The attachment does Business that the Bank for Agriculture and Agricultural Cooperatives, which pre-finances the mortgage system, wants to issue promissory notes up to 100 billion baht next Thursday. They are mainly offered to public companies, which have a high level of liquidity. However, the question is whether the Ministry of Finance will guarantee this.

Previously, the government has tried several times to raise 130 billion baht through bond sales (no interest in it, two auctions failed), loans from commercial banks (denied due to fear of legal complications), an interbank loan from the Government Savings Bank (GSB) to the BAAC (dropped after protests) and bond purchase by Airports of Thailand (staff resist). The interbank loan led to a bank run on the GSB. In a few days, 56,5 billion baht has been withdrawn by savers.

Other rice news: Iraq finds the quality of Thai rice below par

Iraq will stop buying Thai rice until the quality improves. In the first half of last year, the country still bought rice from Thailand, but the purchases stalled in the second half. Thailand could have sold 300.000 to 400.000 more tons of rice without the boycott. Now the counter remained at 2013 tonnes in 703.869, 9 percent less than a year earlier.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, cites the example of Iraq to indicate that exporters are deeply concerned about the declining quality of Thai rice if it continues to be stored. Ultimately, buyers will lose confidence in the quality of Thai rice and the export industry will suffer as a result.

According to Sermsak Kuonsongtum, director of Chaiyaporn Rice, a major rice exporter to Iraq, there is a second reason for Iraq's withdrawal. Doubts have been raised about the accuracy of the weight of rice delivered. In previous years, Thai exports to Iraq have been dominated by one company, Siam Indica. That company would have close ties with the government and would have been able to buy the rice cheaper than other exporters.

Surasak Riangkrul, director general of the Foreign Trade Department, calls the reports of the boycott of Iraq exaggerated. Officials from that country have yet to discuss the matter with their Thai counterparts.

Chookiat defends the quality of the rice supplied by the private sector, which is strictly controlled. The problem only concerns the government's supervision of its own rice stocks.

(Source: Bangkok Post, February 21 and 22, website February 21, 2014)