Thailand: Rice mills group calls for banks to ease lending rules

NAKHON RATCHASIMA: The Thai Northeastern Rice Mills Association is pleading with the government to assist in negotiating with banks to loosen their lending regulations in preparation for the forthcoming harvest season as rice mills reportedly lack financial liquidity. Wichai Srinawakul, president of the Thai Northeastern Rice Mills Association, said yesterday that commercial banks had stringent lending policies for rice mills, which affects their ability to buy rice from farmers for the upcoming season, which begins in November in the Northeast. Mr Wichai claims the banks only approved a limited credit amount for the rice mill operators, even though guaranteed assets were provided for the loans. The decision affected the mills' liquidity as they prepared to purchase rice from growers with a 7.5-million-tonne aggregate rice harvest this season in the northeastern region. "Over 40% of the 160 rice mills that comprise our association's membership require loans from state-run ...