Finance Ministers will close Rice-pledging scheme’s account on Nov 13 but whether the loss will exceed 700 billion baht depends on how to book lost grain.

Rungson Sriworasat, chairman of a subcommittee in charge of closing the account, said on Monday “Only 1.8 million out of 18 million tons of paddy at present in state stock were of good quality, 12.6 million of low quality, 900,000 of poor quality and 100,000 were lost grain”.

Federation of Accounting Professions, whose members sit on the subcommittee advised to Change evaluation method based on quality to real losses, said a ministry source.

Good-quality rice should be booked at a certain price level, such as a little over 10,000 baht ton, although the price of poor paddy could be fixed at less than 5,000 baht.

Grains, which are under sale, contract but yet to be delivered the group want to book it as a loss.

According to the sources, the method will result in the loss from the programme exceeding beyond 700 billion baht.

Separate account for losses is recommended, also law passed for the government to borrow by issuing 30-year bonds.

The law should clearly define the interest and principal which government will pay for the debt every year to bring back the confidence among investors and ratings agencies.

Prior, the same method was used to clear the 1.4-trillion-baht debt drawn after the 1997 financial crisis.

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