He said the application Pridiyathorn back plans to buy rice at prices higher than market rates also led to Thailand will face difficulties in exporting and lost its position as the biggest rice exporters world. Daily "Bangkok Post" quoted him as saying that the ability to "Vietnam will overtake Thailand became the first world number one exporter in 2012."

The government of Prime Minister female Yingluck Shinawatra plans to implement the plan to purchase ordinary rice for about 15,000 baht (500 USD) / tons and rice Hom Mali (jasmine) for 20,000 baht (667 USD) / ton in last week. The prices are higher than about 5,000 baht per ton over the market price at the present time.

Under the plan mentioned above, rice is considered a character credit to mortgage loan applications of state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) to purchase grain from farmers.

If grain prices higher price commitments, farmers and buyers can sell the market and profit after paying off a loan. If grain prices lower than the price of government commitment, the BAAC will stand to purchase, then stored in state warehouses and auction firms milling or export.

(Photo Dinh Hue / VNA)

He Pridiyathorn assumed if 90% of the 30 million tons of grain harvested in the 2011/12 season is purchased it will lead to loss of potential government 135 billion baht, due to the difference between the purchase price of agricultural commitments population and market prices.

That number will increase greatly if additional losses, the situation of food prices on global slowdown, reducing capacity to bargain ...That's not to mention the plans that are easily hurt by corruption and price manipulation.

Observers say that the government plans to purchase grain from farmers at high prices would distort prices on the domestic market, the impact to consumers and taxpayers in the country. The move will help Vietnam and other rice exporters of other countries to benefit significantly, thanks to offering competitive prices.

Ammar Siamwalla, an economist with Development Research Institute of Thailand (TDRI), said that the purchase of grain at high prices under the above plan will encourage Thai farmers to increase rice cultivation area and not much attention grain quality.

The result would be a risk of government-core collectors of rice-farmers will have to "spend an unlimited amount of taxpayers' to keep grain prices high as promised.

BAAC estimated cost of this plan will reach 190 billion baht in the first year of implementation, much higher than the amount of loss is only about 7.38 billion baht in 2009 when his government replaced Abhisit Vejjajiva planning programs with guaranteed prices for farmers. The Thai government must build more or hire more new rice storage warehouses and so will push up costs.

When the government released the rice stored in warehouses to sell, the price of rice on the international market will decline, the more likely lead to more losses. Besides the risk of losing position rice exporter in the world, the new policy will also increase domestic prices 25%.

Before that, some analysts suggest that grain policy of the new government headed by Ms. Yingluck Thailand may push to have the ability to "give" the throne of a rice exporter in the world few decades to Vietnam, now a rice exporter of the world's second lot.

The new policy can be pushed out of the Thai rice export market, because the world prices are lower than the price that the Thai government set.

Thailand and Vietnam, which holds 30% and 20% market share of grain traded in the world. Statistics show that Thailand will export more than 10 million tons of rice this year, compared to 9.05 million tons in 2010.

Meanwhile, according to Bloomberg, rice exports in the first eight months this year Vietnam reached 5.32 million tons.It is expected that rice exports this year in Vietnam will increase to 7.5 million tons. /.