7 Years Needed To Clear Rice Debts: Baac

[Flashermac]

The Bank for Agriculture and Agricultural Cooperatives believes it will take about seven years to clear the Bt755 billion in debts related to the previous governments' rice-pledging projects.

 

According to BAAC managing director Luck Wajananawat, about Bt50 billion of that debt is from the rice-subsidy scheme before 2013. The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration. It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks.

 

The budget for fiscal year 2015 allocates Bt6.88 billion for the farmers' income guarantee and Bt70.13 billion (Bt30.69 billion principal amount and Bt34 billion in interest) for payments related to the rice-subsidy projects, Luck said.

 

Another source of income to help clear the outstanding debt in fiscal 2015 is the proceeds from the sales of rice stocks kept in state warehouses, which the government estimates at about Bt60 billion, he said.

 

The government is spreading the rice-subsidy debt repayments over a long period to avoid putting too much pressure on the state budget, which is needed for the country's development projects, he said.

 

The current military-led government will not reintroduce the pledging scheme of the previous elected government, which set the rice price 40-50 per cent above the market price, allegedly resulting in a loss of at least Bt400 billion. The current regime will instead help rice farmers lower their costs while raising yields and productivity, Luck said.

 

 

http://www.nationmultimedia.com/business/7-years-needed-to-clear-rice-debts-BAAC-30243432.html

[YimSiam]

Cost of price supports to farmers: 400 billion baht

Unexplained additional "piled up" cost: 300 billion baht

Cost of current and coming years of military dictatorship with unfettered expenditure and no civilian or elected oversight: Priceless!