Thailand's rice program remains heated and controversial in 2012

Thailand's rice program remained one of the country's most heated issues in 2012, triggering charges and counter-charges among government officials and critics from the opposition but getting unequivocal support from Thai farmers.

While members of the Thai academe were divided on the issue, Thai farmers, who are the beneficiaries of the rice program, have sided with the government for obvious reasons.

Tens of thousands of the rice farmers have extended their support for the rice program initiated by the Puea Thai (For Thais) Party-led government under Lady Prime Minister Yingluck Shinawatra through peaceful demonstration.

The rice farmers said that their earnings have increased since they can sell their products directly to the government at a much higher price of 15,000 baht (500 U.S. dollars) for each ton of rice.

The government's buying price is much higher than the 10,000 baht (333 U.S. dollars) buying price under the previous government led by former Prime Minister Abhisit Vejjajiva.

Wichian Puanglamjiak, deputy leader of the Thai Rice Farmers Association, called on critics of the rice program to go out and talk to the rice farmers themselves to find out their real sentiment instead of just hurling unfounded accusations against the government.

Former Agriculture Minister Prapat Pothasuthon had mobilized a large number of rice farmers in his former constituency of Supan Buri province to join the pro-government rally expressing solid support for the program.

Pornpong Sukwongchan, leader of the Central Region's Rice Farmers Network, offered to testify before any committee in Parliament or any independent body in order to defend the program from allegations that it has been mired by corruption.

Sukwongchan challenged the critics of the rice program to present their pieces of evidence of wrongdoing by the government, saying he would refute them one by one.

The rice program has been heralded as a major populist policy of the ruling Puea Thai Party during a previous electoral campaign.

But, according to Democrat MPs, the rice program is prone to corruption among rice traders, government personnel and "ghost" firms for huge profits from the government-mandated buying price.

In fact, opposition MPs have formally filed a petition with the National Anti-Corruption Commission calling for an investigation of alleged corruption in the government's rice program. The anti- graft agency consequently set up a subcommittee to look into the charges.

"The government-to-government rice deals have turned out to be a complete fiasco because no rice was eventually exported anywhere outside of the country. Over 1.4 million tons of rice were circulated among certain rice traders in connivance with some corrupt officials. They made huge profits selling the circulated rice to the government agencies under the rice program," said Democrat MP Varong Dejkitvikrom during last month's censure debate in parliament.

Democrat MP Ong-ard Klampaibul alleged that the 300 billion baht (10 billion U.S. dollars) rice program was prone to corruption and quoted a member of an unidentified House committee as saying an estimated 1 million ton of rice, earlier bound for export, has been unaccounted for so far.

More than 100 lecturers and students of the National Institute of Development Administration, led by Adit Isarangkul na Ayudhya, dean of the Economic Development Faculty, charged that the rice program was undermining the free market mechanisms and turning the government into a monopolist trader.

"The government has not only failed to uphold the free-trade principles but competed against the Thai private sector in rice trading," the leading academic said.

But other academics have expressed support for the rice program, because, they maintained, it was primarily designed to benefit the country's eight million-plus rice farmers.

Thammasat University's law lecturer Punthep Sirinupong said the government is correct in pursuing a populist policy that would serve the best interest of the farmers.

"It is a policy of state which could be implemented by the government. The Constitutional Court was not obliged to judge if it was good or bad. It's the people who should judge," said another academic, Virapat Priyasawong.

Prime Minister Yingluck had insisted that the nationwide rice program should be continually implemented as planned because once the income of the farmers is increased, their purchasing power will improve and it will shore up domestic consumption and the country's economic growth.

"Let's just give the rice farmers a chance to increase their earnings so that they could eventually contribute to our country's sustainable economic growth," she said in Parliament during the censure debate.

Yingluck assured her critics that her government would take legal actions against unscrupulous government officials and rice traders who are found to be involved in some shenanigans or corrupt practices.

Major buyers of the Thai rice include China, Bangladesh, Indonesia, the Philippines, Nigeria and Ivory Coast.

Boonsong said that Thai rice will certainly sell for no less than 600 U.S. dollars and probably up to 700 U.S. dollars per ton in the world markets, compared to only about 400 U.S. dollars a ton currently offered for the Indian and Vietnamese rice.