August 13, 2012

Thailand's Commerce Ministry to propose corn pledging scheme

A one-million-tonne corn pledging scheme will be proposed by Thailand's Commerce Ministry at a cost to the government worth THB10 million (US$318,000).

Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said the scheme has been approved by the National Corn Policy Committee chaired by Commerce Minister Boonsong Teriyapirom.

The ministry will seek cabinet approval for the scheme soon. The pledging scheme is aimed at stabilising corn prices.

The maximum pledging price is set at THB9 (US$0.29) per kilogramme for corn with moisture content not over 15%, said Yanyong.

The market price of corn is currently as high as THB11 (US$0.35) per kilogramme. However, the scheme is being set up now to ensure the price does not drop drastically later in the season. The harvest is not due for some time.

Meanwhile, the Democrat Party has assigned its MPs to investigate rice mills participating in the government's pledging scheme to find evidence of fraud.

The opposition party has instructed its members who are on the House standing committee on economic development, chaired by Democrat MP Chanin Rungsaeng, to make field trips upcountry to inspect the rice mills.

The members will set off on their inspection trip on August 10, visiting four Ayutthaya mills that are participating in the scheme, Democrat MP and shadow commerce minister Warong Dejkijwikrom said on August 8. Starting next week, they plan to tour northern and north eastern mills and paddy warehouses until they cover all provinces, he said.