Thread: Drought threatens Thai rice export

Drought threatens Thai rice export - Asia-Pacific - Al Jazeera English

Drought threatens Thai rice export

Thailand is the world's number one exporter of rice providing one third of the world's total supply.
But the country is suffering from the worst drought in 20 years, and that could have consequences for the entire economy.
Al Jazeera's Aela Callan reports from northern Thailand.

Mark

http://thainews.prd.go.th/en/news.php?id=255308220033

PM: Govt to re-compensate affected farmers


BANGKOK, 22 August 2010 (NNT) – The Government will re-compensate rice farmers via the income guarantee scheme after some of them received a smaller amount of payment before the use of new calculation formula, according to Prime Minister Abhisit Vejjajiva.

Speaking in his weekly TV program “Confidence in Thailand with Prime Minister Abhisit”, the Prime Minister admitted complaints made by farmers that they could not sell rice paddy to millers at the reference prices and they therefore were asking for more compensation.

Prime Minister Abhisit explained that the problem was caused after the National Rice Committee on 26 April 2010 announced a new reference price for rice; therefore, farmers compensated before 26 April received relatively lower payment via the income guarantee scheme.

The Prime Minister promised that compensation would be re-calculated for farmers in this group by using the formula announced on 26 April, and the additional compensation would be proposed to the Cabinet for approval. He therefore ensured effectiveness of the income guarantee scheme for farmers.

Regarding the falling rice price, Prime Minister Abhisit responded that the Government would accelerate the release of rice into the market to increase rice price, He believed the price would be higher by the end of this year. He added that the Government would set up welfare funds for Thai farmers as well.