Citations of Finance Ministry has estimated that Thailand is under a loss of 320 million Baht ($9.9 billion ) and this loss is rising substantially. Bank of Agriculture and Agricultural Cooperatives (BAAC) President, Luck Wajananawa has told Reuter that this is the estimation till the end of may. He said that this loss ,may be jump more as the previous government has purchased this at a rate much higher than that of the market price and is selling it at a lower prices after finding the rice of inferior quality or has been replaced with the good quality rice.
Luck said since the government is under debt of BAAC, it will set aside some money form the central budget and some from which it earns after selling the rice but it may take seven years to disburse this debt of BAAC
Deputy PM Pridiyathorn, said that if there is some new saving bond which could help the government to repay the debt. Also he asked the Public Debt Management Office to extend repayment of the rice-pledging scheme’s Bt700-billion debt to 30 years. from current allotted time period of five years
For the FY 2015, budget allotted for the farmers’ income guarantee is Bt6.88 billion and Bt70.13 billion (Bt30.69 billion principal amount and Bt34 billion in interest) for payments related to the rice-subsidy projects, Luck said.
The government is planning to use the allotted budget for infrastructure project of the country of Bt2.4-trillion for the repayment of the debt for rice subsidy scheme.
Pridiyathorn, wanted that the government should allowed saving bond with the maturity period of 10, 15 and 30 year for which they will pay the interest to the people. PDMO has allowed the saving bond for ten years and hence resolve the issue.
PDMO usually targets the combination of big retailers and institutional investors as it think that the sales by the small investors are greater than that of large investors.
The debt of about Bt100 billion will come due in fiscal 2015.
Luck said that the military regime will not set any kind of rice subsidy scheme in the country as set by the previously elected government which raises the rice prices above the 40-50% market price and hence let the government under a loss of Bt400 billion. Instead the military will help rice farmers lower their costs while raising yields and productivity