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 relaced with the good quality rice.
He said that the actual estimates for the loss is still to determine as the they have to see the price differences between the price at which the rice was purchased from the farmers and the price at which the rice was sold under the scheme but still the estimetes are at 750 billion baht .
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. From the staring of this scheme in 2011, the government had borrowed 750 billion baht from the bank to buy rice from farmers at 15,000 baht per tonne, about 60 percent above market rates.
This scheme benefitted the former prime minister Yingluck Shinawatra to bring him back to the election as he was supported by the farmers who basically reside in the remote areas of the northern part of the country.But the Scheme was boycotted when the government failed to sell rice to pay balnce due, to angry farmers, leading to months of protests that ended in a military coup in May.
The government has not discloses any estimation regarding the loss but the critics has estimated it in between 300 billion and 500 billion baht. The government has offered indirect support to the farmers in terms of cheap fertilizers and soft loan policies to cut the production