Prime Minister Prayut Chan-o-cha plans both criminal and civil lawsuits over previous government's loss-ridden rice subsidy scheme, and says reducing the size of the rice harvest would help solve the problem of oversupply.
Examination of government rice stocks reveals poorly stored rice in Chachoengsao province in July. (Photo by Pattanapong Hirunard)
After a meeting of the rice policy and management committee at Government House on Friday, Gen Prayut said the four rice subsidy schemes of past governments caused a combined loss of 680 billion baht to the state.
Those responsible for the losses would be sued for compensation. The amount would be calculated after the Commerce Ministry reports just how much of the stored rice it could sell, he said.
When his National Council for Peace and Order seized national administrative power, there were about 17 million tonnes of rice in government stockpiles. The previous government bought the rice at prices far higher than market rates to please farmers.
Of the amount, 2.20 million tonnes were of standard quality, 14.40 million tonnes could be improved for sale, 694,000 tonnes had deteriorated and 68,000 tonnes were of different varieties than those reported in the pledging documents.
The prime minister said sales of the stockpile would be carefully timed to ensure they do not lower the market price. He expected the process to take three years. The stock would be put up for local and international auction, he said.
Vietnam had announced it would become the biggest rice exporting nation next year, but Thailand would battle to defend its top ranking. It would focus not only on the amount of sales, but also on the development of rice quality to increase prices.
Gen Prayut also said Thailand had a problem of rice oversupply, because of low-quality rice. The quality of the crop must be improved and the overall harvest reduced.
Parnthep Klanarongran, chairman of the National Anti-Corruption Commission, said on Friday that the panel should soon finish its investigation into allegedly corrupt G2G rice sales handled by former commerce minister Boonsong Teriyapirom.
He expected it would conclude with public prosecutors taking criminal and civil action against former prime minister Yingluck Shinawatra over the loss-ridden rice-pledging scheme early next year.