
CATEGORIES

	Long Live His Mayesty the King
	Thailand
	Bangkok
	Phuket
	Chiang Mai
	Hua Hin
	Pattaya
	Hat Yai


	Home » Bangkok » 27.05.09 Suthep heads crop panel

Print this article

Email this article

27.05.09 Suthep heads crop panel

Source: Bangkok Post

Prime Minister Abhisit Vejjajiva has appointed Deputy Prime Minister Suthep Thaugsuban to head a committee to settle the supply of rice, field corn and tapioca from the mortgage stockpile.

Battling over billions Finance Minister Korn Chatikavanij defends the cabinet-sponsored executive decree to allow the government to borrow 400 billion baht to spur the economy at the Constitution Court yesterday. The opposition Puea Thai Party petitioned the court to rule on the loan’s legality, saying it was not urgent and does not justify passing the decree. APICHART JINAKUL

The move is seen as an attempt to patch up rifts that have opened between Mr Abhisit's Democrat Party and the Bhumjaithai Party.

Bhumjaithai leaders have been lobbying Mr Suthep to take over commerce issues from Deputy Prime Minister Korbsak Sabhavasu who oversees the Commerce Ministry.

Mr Korbsak has locked horns with Commerce Minister Porntiva Nakasai of Bhumjaithai over the ministry's planned release of mortgaged crops to reduce huge stockpiles, lower warehousing costs and prevent the crops from further deterioration.

The scheme faces huge losses and poses a question of transparency.

The Commerce Ministry was forced to cancel a bid for 400,000 tonnes of field corn after it was blocked by Mr Abhisit. Its plan to sell 2 million tonnes of rice is waiting for cabinet approval even though the ministry has signed a contract to sell the rice to 17 exporters.

Mr Abhisit said yesterday he had assigned Mr Suthep to take charge of the issue as Mr Korbsak and Mrs Porntiva had differing views on the release of the mortgaged rice.

The panel is made up of Mr Korbsak, Mrs Porntiva, Deputy Finance Minister Pradit Phataraprasit and National Economic and Social Development Board secretary-general Ampon Kittiampon.

Any proposals by the committee to release the stocks must be in line with cabinet guidelines on exporting the produce to avoid affecting domestic markets, Mr Abhisit said.

The sale price of mortgaged crops should be based on the pledge and market prices and exports should be accelerated or the produce would be ruined, he said.

"It is not appropriate for the National Rice Policy Committee to settle the rice price because there are representatives from the private sector on it," the prime minister said. "Mr Suthep has been brought in because Mr Korbsak and Mrs Porntiva have differing ideas."

Asked about a threat by rice export firms to sue the ministry over its failure to release the stockpiles, Mr Abhisit said it was the ministry's responsibility to clarify the matter.

A government source said Bhumjaithai leaders led by Somsak Thepsuthin were unhappy with Mr Korbsak and have asked Mr Suthep to take over trade issues as well as chair the panel.

The source said Bhumjaithai found it easier to talk to Mr Suthep than to Mr Korbsak. Mr Suthep is reportedly considering the suggestion.

"But he has conditions that any scheme which has transparency problems must be thoroughly scrutinised," the source said.

"It is possible to have Mr Suthep oversee commerce issues to mend the rift and keep the coalition government going," the source said.

Mr Korbsak is reported to have suggested that the Democrat Party swap one of its ministries with the Commerce Ministry to give the ruling party a free hand in dealing with crop prices. Mr Abhisit seemed to be interested in the suggestion, the source said.

Mr Korbsak said it was time to scrap the mortgage scheme, saying the project which is regarded as being riddled with corruption had caused huge damage to the state.

"I think the crop mortgage scheme has to go. It is useful if it is properly managed. So far it has not," the deputy prime minister said.

Mr Korbsak said price guarantees promise greater benefit. Farmers know in advance how much they will earn before growing their crops.

"If they think the government's price is not good enough, they can choose to do something else."

The release of the mortgaged crops is not the only issue dividing the Democrats and Bhumjaithai. The 69-billionbaht, natural gas-fuelled bus rental project is threatening the coalition's stability. The cabinet has ordered a review of the scheme which had been widely opposed since it was introduced. The scheme's high cost has stirred suspicions it could be fraught with irregularities.

27.05.09 Suthep heads crop panel

Other Recent Articles from the Bangkok Category: