Rice pledging won’t favor particular groups: Commerce Minister

The Thai government’s rice mortgage scheme will not be applied to pull rice prices higher in order to benefit the private sector or some specific groups of people, but to ensure that farmers earn higher incomes, according to Deputy Prime Minister and Commerce Ministry Kittirat Na-Ranong.

He said National Rice Policy Committee meeting on Friday afternoon, chaired by Prime Minister Yingluck Shinawatra, discussed in principle to plan the startup of the mortgage scheme on Oct 7.

The rice harvest is expected from the end of October into early November. Paddy in an unlimited amount can be mortgaged under the government scheme, Kittirat said.

He assured farmers that they will receive fair prices according to real costs, while the government will try to prevent the mortgage plan’s shortcomings as a number of parties have expressed concern.

Related agencies, such as inspectors from his ministry, Interior Ministry, chief district officers, and rice surveyors, will be allowed to closely monitor the mortgage process to prevent possible corruption.

The government will ensure efficient rice milling and rice stocks, stored under safe temperature and for not overly long which otherwise can affect rice’s quality and price drops, he said.

Meanwhile, the Ministry of Commerce-run Public Warehouse Organization has been assigned to produce packaged rice in some periods in order to help low-income earners, but not to affect rice packer entrepreneurs of good quality, such as Hom Mali fragrant rice (Thai jasmine rice).

The government is also to push rice exports to the world market by encouraging overseas rice buyers buy Thai rice at a higher price so as to help farmers gain profit. (MCOT)

Flooding impacts consumer confidence in August

Thailand’s Consumer Confidence Index (CCI) in August dropped to 73.8 from 74.4 in the previous month, the first decline in four months, thanks to severe flooding in the North and Northeast, according to a survey released last week.

The drop in consumer confidence was attributed to the extensive damage to property and crops in the flood-stricken areas.

In addition, other negative factors affecting consumer confidence include concerns among consumers about the rising cost of living and goods at rates much faster than their incomes, according to a survey conducted by the University of Thai Chamber of Commerce (UTCC) Economics and Business Forecasting Centre.

The confidence index on job opportunities for the month fell to 74.4 from 74.9 in July. Consumer confidence regarding future income dropped from 102.1 to 102.8, the centre said.

Both consumers and businesses are feeling less confident as they remain uncertain on how the Pheu Thai-led government of Prime Minister Yingluck Shinawatra will translate its policy into action.

The latest forecast of Thailand’s National Economic and Social Development Board (NESDB) which revised downward the country’ gross domestic product (GDP) in 2011 to 3.5-4 percent from its earlier forecast in a range between 3.5-4.5 percent, also dampened confidence among consumers who fear that the economy is growing at a slower pace against the backdrop of key interest rate hikes by the central bank.

Concerns over the fragile global economic recovery, in particular the Eurozone debt crisis and the US public debt crisis, also helped drive consumer confidence down.

The survey shows, however, public confidence in the Thai economy, nonetheless stood above 100, indicating that the situation is not worrisome, according to the centre. (MCOT)