Dollars in the paddies

Local News

AGRICULTURE

DSI probes foreign money in paddies

Published: 6/08/2009 at 12:00 AM

Farmers from Nakhon Pathom will submit evidence to the Department of Special Investigation today to support claims foreign investors are illegally acquiring paddy fields through Thai nominees.

The move comes as the DSI looks into a report that foreigners are buying and leasing land for rice farming with the help of nominee companies.

The action violates the law which allows only joint ventures between foreigners and Thais to operate farm businesses.

· See our editorial:Worse worries than land grab

But the report needs to be examined to answer questions over the alleged land acquisitions which have been deemed as causing "enormous damage" to farmers, Thai Farmers Association president Prasit Boonchoey said.

A DSI source said the agency had sent an investigative team to Ayutthaya, a rice-growing province in the Central Plain.

The DSI expected its investigation to take about two weeks. If it uncovered illegal acts, the agency would inspect paddy fields in other regions, he said.

Prime Minister Abhisit Vejjajiva said he had asked the Commerce Ministry to look into the allegations. Farming is reserved for Thais only, he said.

Meanwhile, rice farmers in Ayutthaya's Bang Ban, Sena and Phak Hai districts have decided to leave their farms after their attempts to ask a landlord to extend their leases failed, said Somjit Jankaew, 55, a farmer from Lat Bua Luang district.

They are among 80 farmers whose rental period expired after being allowed to farm on more than 5,000 rai, owned by a private company, for more than 10 years.

A company representative said it had no policy to renew the farming period but would help farmers by allowing them two years to leave, one year more than required by law, Mr Somjit said.

"The farmers are now divided," Mr Somjit said. "One still goes ahead with their request while the other gives up."

Those who are still confident about their effort to stay on the land have asked Ayutthaya's state attorney office to help them negotiate with the company to give them four more years of farming.

If the company does not change its policy, the farmers would leave, Mr Somjit said. Many rice farmers enter into "unofficial contracts", requiring no documents, with landlords.

(www.bangkokpost.com/news/local/21538/dsi-probes-foreign-money-in-paddies)