BANGKOK, 19 August 2008 (IRIN) - Thailand's Finance Ministry has announced it will lease some 160,000 hectares (ha) of unused state-owned land to poor farmers and agri-businesses to boost domestic rice production.

The programme is part of a campaign by Thailand - already the world's largest rice exporter - to boost rice production and help ward off a possible global food crisis.

Amnuay Preemonwong, deputy director-general of the treasury department, told IRIN the project would also focus on increasing the supply of biofuel crops, alternative energy crops, and food crops, including sugar cane, palm, cassava and rice.

"Fundamentally, local farmers and residents will have priority, especially those listed in the low-income groups," said Amnuay. "This project is the integration of small-scale with large-scale farming with the cooperation of government agencies and corporations."

The target is to implement the plan in three months. It would be carried out in cooperation with the Ministry of Agriculture and cooperatives, the Ministry of Energy, and the Ministry of Industry, he explained.

The state-owned land in question would come from all 75 of Thailand's provinces, but mainly from the provinces of Kanchanaburi, Surathani, Ratchburi, Nakorn Ratchsima and Kalasin.

Government agencies that are not using or under-utilizing their land are required to return it to the treasury department.

Currently, 56 percent of state property has been registered for military purposes.

According to Amnuay, the deputy permanent secretary of defence has said the ministry was surveying about 80,000 ha that it plans to hand over for the project. Provincial treasury department offices were currently surveying about 72,000 ha for suitable plots for agricultural purposes, he said.

Other government agencies involved in the plan include the Ministry of Agriculture and agricultural cooperatives which hold 14 percent of state land; the Ministry of Education, which holds 5 percent, and the Ministry of Finance, which holds 3 percent.

The treasury department will charge a nominal fee of 63 US cents per 'rai' (0.16 ha) each year, and the rental contract would initially mature in three years.

Amnuay explained that production targets would depend on the crops that were cultivated in each region. Relevant ministries and provincial governors would be instrumental in implementing the project.

Not everyone in agreement

Permsak Makarapirom, a member of the National Economic and Social Advisory Council, expressed concern that the government would fuel large-scale rice production by supporting a few big agri-business companies, and raised other questions.

"Will the government use hybrid, or genetically modified rice? The government says things about organic rice farming, but it also promotes the use of chemical fertiliser," he asked.

Charin Duangdara, adviser to the Indebted Farmers' Network, a local non-governmental organisation (NGO), described the government's plan as a political stunt in order to gain popularity among struggling farmers.

He said the government may not have considered some crucial elements of the plan.

"Has the government studied the areas where the plan will be implemented? What is the land's condition? Are there farmers who live nearby who want to have a right to rent the land because the rents they are currently paying are too high for them? If they don't own any land, but already have been renting for farming, will they qualify as farmers who don't have a workplace of their own and be able to join the programme?" he asked.

Plan could trigger farmers' migration?

The plan could also create confusion and trigger a migration of farmers across Thailand in order to access more affordable land under the programme, he warned.

"At present, most farmers have to rent land and are paying unfair prices - about 1,200 baht (US$36) per 'rai' each growing season," Charin said. "That's too high. They will surely want to join this programme because the government said the price would only be about 20 baht [63 US cents] per 'rai'".

Charin called on officials to do more research and carry out public hearings before launching the plan. He said the treasury department and the Ministry of Finance should support the leasing of land for agriculture. In order to truly help farmers, the government should bring down the cost of farming, he said.

"It's strange how the government always tries to control consumer prices but never tries to control agricultural costs. They let the fertilizer manufacturers increase prices whenever they want," he said.

ag/ds/cb

© IRIN. All rights reserved. More humanitarian news and analysis: http://www.IRINnews.org

IRIN news