Pichit rice mills default on 1.3 billion baht owed to cooperatives

Three major private rice mills in Pichit province, specifically in the Thap Khlo, Sam Ngam, and Pho Thale districts, have defaulted on payments to 12 agricultural cooperatives and farmer groups. The total estimated damage exceeds 1.3 billion baht.

The issue stems from three primary causes: defaults on payments to cooperatives, missing inventory from paddy rice storage (referred to as ‘ghost stocks’), and ongoing legal proceedings involving six cooperatives for approximately 1.28 billion baht. There are concerns that this debt will cause liquidity shortages within the cooperatives, potentially hindering their ability to purchase the upcoming large harvest of seasonal rice later this year.

Piyarat Thiapairat, Deputy Minister of Agriculture and Cooperatives, has ordered the Department of Cooperative Promotion to intervene urgently. Nirun Munthida, Director-General of the Department of Cooperative Promotion, has instructed the Pichit Provincial Cooperative Office to meet with the affected groups to find solutions and prepare for the upcoming harvest season.