China has scrapped a deal to buy 1.2m tonnes of Thai rice, about 14 per cent of annual exports, because of a corruption probe into Bangkok’s troubled agricultural subsidies scheme, dealing a huge blow to the embattled government.
Beijing was spooked by the Thai national anti-graft agency’s probe into the rice price support programme, Thailand’s commerce minister said. A Thai bank also pulled its support for the project, which has been plagued by funding shortages that are triggering protests from unpaid farmers.
The rice scheme’s growing problems are piling pressure on Yingluck Shinawatra, prime minister, as she tries to stave off renewed efforts by the opposition to unseat her after it boycotted and disrupted elections at the weekend.
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