BANGKOK, 21 Oct 2013, The Bank for Agriculture and Agricultural Cooperatives (BAAC) reaffirms it has more than 500 billion baht in circulation for the rice mortgage scheme in the new harvesting season.
BAAC Managing Director Luck Wachananwat stated that during the previous 2012/2013 season, the bank paid around 680 billion baht to farmers under the rice mortgage scheme while only 500 billion baht in budget had been set aside, prompting the BAAC to spend 180 billion baht in reserve fund.
He said that the Commerce Ministry has paid the BAAC back 130 billion baht, leaving a balance of 50 billion baht. Out of that balance, the BAAC would absorb 25 billion baht while the Commerce Ministry must try to empty its stockpile of pledged rice and pay for the rest. Nonetheless, the payment should be returned by the end of the year in order to replenish the bank’s fund in circulation back to 500 billion baht.
The BAAC Managing Director also stated that the bank would quickly pay 45,000 farmers who have yet to receive the money amounting to 6.66 billion baht from the previous season. It is expected that the money would be ready for distribution today, October 21st.