IMF calls on Thailand to end costly rice subsidies
Fund has called on Thailand to drop its multibillion dollar subsidies for rice growers.
BANGKOK (AP) - The International Monetary Fund has called on Thailand to drop its multibillion dollar subsidies for rice growers, saying the program is undermining confidence in the country s finances.
The IMF says Tuesday in its annual review of Thailand s economy that losses in the program will continue if the policy remains unchanged.
The government buys rice from farmers at above-market prices but has had difficulty in reselling the grain on international markets.
The program has accumulated losses of at least $4.46 billion since it was introduced in 2011.
The IMF also said lack of data about the rice purchasing program has diminished confidence in Thailand s public finances.
Thai officials say in the report that a reduction in the pledging prices or a purchase limit might be necessary to sustain the policy.
