Rice policy committee maintains rice pledge price at Bt15,000/tonne

The National Rice Policy Committee acted Monday to maintain the pledge price of 100 percent paddy rice at Bt15,000 per tonne until Sept 15, reversing its earlier decision to slash the pledge price from Bt15,000 to Bt12,000.
Following the meeting, Deputy Prime Minister/Finance Minister Kittiratt Na Ranong disclosed the committee’s decision in his capacity as chairman of the committee.
The purchase limit per household must not exceed 500,000 baht, effective until November 30. The committee resolution was submitted to the Cabinet for consideration Tuesday, he said.
Regarding farmers who were given the reduced pledge rice price at Bt12,000 per tonne during June 30 to July 2 as set by the earlier meeting will be compensated for the margin.
The committee insisted that the decision to set the price at Bt15,000 per tonne will not affect the country’s fiscal and monetary discipline.
The government spent a budget of Bt345 billion for the rice pledging scheme for the harvest season 2013/2014. The spending is within the budget framework of the Bt500 billion maximum.
The committee agreed to increase channels to release rice in the government’s stock effectively in the second half of this year including government-to-government trade and selling rice to Thai and foreign entrepreneurs.
It will be released through the Agricultural Futures Exchange of Thailand (AFET). The government targets releasing about one million tonnes a month and 5-6 million tonnes by this year with the budget of Bt72 billion.
So far, about four million tonnes were released and 17 million tonnes of rice remain in government stocks.
The committee agreed to increase efficiency in rice cultivation to reduce production cost and raise farmers’ income.
Regarding concerns over corruption, the meeting assigned a subcommittee at the provincial level to strictly check the process and install CCTV surveillance cameras at rice purchase spots and warehouses. (MCOT)

Gov’t to conduct impact assessment on water project

The government will conduct an environmental health impact assessment (EHIA) for the mega water management project as ruled by the Administrative Court, a senior official said.
Plodprasop Suraswadi, National Water and Flood Management Policy (NWFMP) chairman, said the public hearings, including organizing exhibitions and public forums on water, should take not more than two months.
Regarding the court’s order for the environmental surveys, he said the national water committee will compile details and locations of all projects including the construction of 18 dams and two floodways to be submitted to the Natural Resources and Environmental Policy and Planning Office together with the results of the environmental surveys.
The EHIAs will be done by consulting firms and academic institutions and projects which are not feasible will be scrapped, he said, adding that completion of the water management project will be slightly delayed.
He said loans for the Bt350 billion project will be done in accord with legal procedures and there is no interest as long as borrowing has not begun.
The Administrative Court on Thursday suspended the water management project pending an EHIA - a verdict made less than a week after the government announced four bid winners, including the controversial Korea Water Resources Corporation (K-Water), for the heavily-criticized water project.
The court’s ruling was made following a lawsuit by the Anti-Global Warming Association which charged the government with giving a green light to the water management master plan without an EHIA.
Plodprasop said the prime minister would be asked to set up a legal committee to decide if the government should appeal the court’s ruling. (MCOT)

Rice theft uncovered at 29 mills

Twenty-nine rice mills nationwide were found to have defrauded the government’s subsidy scheme, National Police Chief Adul Saengsingkaew said Friday (June 28).
He said a one-day simultaneous check of 2,071 rice mills and warehouses throughout the country found unscrupulous transfers of rice from stockpiles under the rice pledging program.
Police have yet to file legal charges, pending further investigation which should take a few more days, he said.
Those involved in rice thefts will be charged with embezzling, he said.
Police personnel have joined officials of the finance and commerce ministries in the all-out rice check. (MCOT)

Thai finance ministry lowers GDP growth for 2013.

Thailand’s forecast of the country’s economic growth for this year has been trimmed from 4.8 percent to 4.5 percent, according to Fiscal Policy Office director-general Somchai Sujjapongse.
He said economic recovery of Thailand’s trading partners - including China, the US and Europe - is slow, compelling an adjustment of this year’s exports from 9 to 5.5 percent.
Investment in the private sector will expand at only 5.7 percent, from the original forecast of 9 percent while disappointing sales of agricultural produce, especially rubber, will wreak havoc on household revenue growth.
Inflation, earlier predicted at 3 percent, will be only 2.5 percent thanks to declining oil prices and commodity prices.
Thailand’s growth at 5.4 percent in Q1 and 4 percent in Q2 should be higher than 4 percent in Q3 and Q4, Somchai said.
He said the Finance Ministry was confident that capital outflows will be short term due to Thailand’s strong fundamentals and the government’s economic stimulus projects.
The government is also emphasizing tourism promotion which resulted in an arrival of 1.85 million tourists to the kingdom in May, or a 19.4 percent increase, he said. (MCOT)