A rice-buying scheme put in place by the Thai government looks like it might be growing to too grand a scale.
Business Day reports that Thai rice farmers may have to hold off on the February harvest due to a lack of storage space, caused by a government intervention scheme that has resulted in some 20 million tons worth of rice purchases since October 2011.
The scheme was originally put in place to help poor, Thai rice farmers by purchasing rice at prices greater than the market rate. However, the plan has also created a paucity of rice storage warehouses, forcing many producers to rent additional space.
Government officials have stated that they will rent 180 more warehouses in order to accommodate their rice storage needs. The projected cost of the rice-buying scheme is roughly THB80 billion, or one-fifth of the country’s projected budget deficit.
