Payments for rice-pledging scheme remain headache for Thai gov't

Overdue payments for rice-pledging scheme remained a big headache for Thai caretaker government as Yingluck's cabinet has failed to seek loans.

Thailand's Krungthai Bank (KTB) has refused to provide loans for the government's rice-pledging scheme.

Vorapak Tanyawong, president of KTB on Tuesday told reporters in a press conference that providing loans to such scheme would result in credit risks to the bank's stakeholders.

Thai caretaker commerce ministry is expected to release 500,000 tons of stockpile rice via auction next week, while its minister Niwatthumrong Boonsongpaisan said Tuesday that he has approved the sale of another 860,000 tons of rice, according to the Nation newspaper.

Thai government could earn some 10 billion Baht (309.8 million U.S. dollars) by doing so in order to fund the rice-pledging scheme in February.

It is reported that Thai farmers will appeal to the king on Thursday on the overdue payments owing from the rice-pledging scheme.

A group of farmers are reportedly gathering names and signatures of affected farmers in Phichit, Phitsanulok, Kamphaeng Phet and Nakhon Sawan to submit a petition to the Royal Household Bureau on Thursday.

Prakasit Jaemjumrat, a farmer leader, said the caretaker government owed some 7.5 billion Baht (232.4 million U.S. dollars) in payments to 40,000 farmers in Phichit province alone.

Over 1,000 of farmers have taken key roads in Ratchaburi and Phichit, among others, on Monday to protest against long delay in rice payments.

Thai caretaker Premier Yingluck is currently facing an investigation over corruption relating to the rice subsidy scheme.

Thai National Anti-Corruption Commission (NACC) earlier on Jan. 16 agreed to investigate the role of Yingluck in the rice pledging scheme after bringing formal corruption charges against 15 people including former Commerce Minister Boonsong Teriyapirom and former deputy Commerce Minister Poom Sarapol.

Also in January, the NACC decided to set up a panel to launch an impeachment probe against Yingluck for alleged negligence of duty in the rice-pledging scheme. Yingluck has served as the chairperson of the National Rice Policy Committee.

Thai government started buying rice from farmers at above- market prices in 2011 to shore up rural incomes, fulfilling a campaign pledge by the Pheu Thai Party, which won a parliamentary majority that year.

The scheme has spurred the buildup of record reserves and helped to dethrone the country as the world's largest exporter.