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Rice policies caught in controversy and politicization ?

by Nagoor Vali

Thai society was shocked when well-known serial petitioner Srisuwan Janya, who has been a thorn within the flesh of the powers that be for years, was arrested on January 28 on an extortion cost. 

Following a sting operation that included anti-corruption officers, Srisuwan was arrested for allegedly demanding 1.5 million baht from the director-general of the Rice Division in change for dropping his plan to lodge a criticism of alleged corruption in opposition to the official.

The police motion adopted the submitting of a criticism by Natthakit Khongthip, director-general of the Rice Division. The official claimed that Srisuwan, and two others — Yotwarit Chuklom and Pimnattha Jiraputthiphak, a former United Thai Nation Celebration candidate — had tried to extort 3 million baht from him.

Yotwarit, also referred to as Jeng Dokjik, is an aide to Deputy Prime Minister Pirapan Salirathavibhaga.

Earlier than the arrest, Srisuwan had posted on his private Fb web page that he would in January petition Agriculture and Cooperatives Minister Thamanat Prompow to analyze whether or not there had been irregularities within the administration final 12 months of 19.3 billion baht value of initiatives below the Rice Division.

These initiatives included rice subsidy of 15.3 billion baht allotted to assist rice farmers cut back their manufacturing value; promotion of recent rice breeds to farmers with a finances of two billion baht; a scheme to extend rice yields and the distribution of rice breeds to farmers value 1.2 billion baht; and rice manufacturing value subsidy below the Bio-Round-Inexperienced Financial system mannequin (BCG) value 874 million baht.

Srisuwan later deleted his submit and cancelled a deliberate press convention.

Rice manufacturing value subsidy  

Rice manufacturing value subsidy has been carried out for a few years by a number of governments. For instance in crop 12 months 2023-24, round 4.68 million households will profit from a scheme that fingers out 1,000 baht per rai of farmland with a ceiling of 20 rai (3.2 hectares) per household.  The federal government claims the subsidy is critical as rice manufacturing value has been rising as a result of rising value of gas and chemical fertilizers and pesticides.

The cash was channelled to farmers by way of the state-owned Financial institution for Agriculture and Agricultural Cooperatives.

Thailand’s rice breeding venture has confronted criticism for lagging in growing new rice varieties. Vietnam, compared, has shortly developed high-quality rice varieties and will meet up with Thailand in top quality rice manufacturing for exports.

Below the draft fiscal invoice for 2024 pending in Parliament, the Rice Division will obtain simply 4.4 billion baht, down 75% from 19.6 billion baht in 2023.

Finances for analysis and improvement of recent breeds is comparatively small as solely a restricted variety of  scientists concentrate on rice breeds, stated Somporn Isvilanonda, a senior fellow at Information Community Institute of Thailand.

In the meantime, Natthakit stated earlier that the Rice Division would this 12 months approve eight new breeds in April this 12 months.

Relating to the BCG mannequin, the Thai authorities lately has been taking note of a inexperienced financial system as a result of international development of sustainable improvement.

Thai governments are looking for higher methods of rising rice sustainably with minimal impression on the atmosphere, in comparison with prevailing practices that use numerous water, chemical fertilizers and pesticides, which depart their footprints on the atmosphere with potential to hurt customers.

Subsidies below rice coverage

The Nationwide Rice Coverage Committee has laid out a number of schemes for manufacturing in 2023-24. They embody offering loans of 34.4 billion baht to delay 3 million metric tons of paddy rice from coming into the market, aimed toward shoring up the value through the early months of harvest. Loans totalling 481 million baht are additionally made accessible to assist rice cooperatives to mixture one million tons of paddy rice on the market.

Susceptible to corruption

Rice subsidy has at all times been controversial and it peaked through the Yingluck Shinawatra authorities in 2011-14, which  precipitated the nation’s political disaster. The Pheu Thai Celebration got here to energy promising a excessive value below the rice pledging scheme. Yingluck’s then commerce minister was given a protracted jail time period for corruption within the rice pledging scheme, whereas Yingluck was additionally convicted and given a jail sentence for dereliction of responsibility in stopping corruption within the scheme. Yingluck fled the nation shortly earlier than the decision and has lived in exile overseas.

Within the case of rice breed distribution, irregularities may simply occur if it was not nicely managed, argued Somporn.

Some native communities are sturdy and nicely organized  whereas others could also be weaker, resulting in inefficiency in rice breed distribution and waste of public sources, he famous.

Rice coverage has at all times had a political affect as politicians fear about their vote base in rural areas. Rice farmers comprise the biggest voter group in a number of provinces.

Total rice market now

Rice value has elevated considerably in contrast with final 12 months.  Export value of the benchmark 5 per cent damaged white rice now could be at US$655 per metric ton in comparison with the common value of $535 final 12 months, in line with the Thai Rice Exporters Affiliation.

The impression of worldwide warming, which brought about extreme drought in lots of international locations final 12 months, has adversely impacted rice manufacturing in a number of international locations, reminiscent of Indonesia, Philippines and Malaysia, leading to increased demand and value for rice imports.

Thailand’s rice exports final 12 months rose 13.6 per cent to eight.8 million metric tonnes and had been value 178.1 billion baht, up 28.4 per cent 12 months on 12 months, in line with the Commerce Ministry.  The export goal for this 12 months is decrease at 7.5 million metric tonnes as a result of an estimated 6 per cent decrease rice yield due to the El Niño phenomenon and excessive competitors within the export market.

By Thai PBS World’s Enterprise Desk 

 

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