tomacht8

The year this scheme folds will be a killer. 20 million tonnes being dumped on the world markets and Thai farmers still growing that rice for what will be a pittance.

Sent from my iPhone using Thaivisa Connect Thailand

Yesterday the UN Food and Agricultural Organisation released a report that says among other things that :

Even if Thai exports increase 26% to 8.5 million tons in 2014 t Thai stockpiles will still grow to 20.4 million tons.

They put global reserves of milled rice at 179 million tons in 2013 - 2014 year.

The price of Thai 5% broken white rice which is used as an industry standard has fallen 23% to US$450 (14,000) per ton this year.

That is against the cost of purchase, milling, storage, cartage etc to the Thai Govt of 29,605 B per ton.

They also said :

The Thai Govts willingness to sell at a loss weighed heavily on market sentiment.

My interpretation : The rest of the worlds rice traders are highly pissed off.

Sorry no link but if you look elsewhere you will find it yourself.

Now many rice farmers are very happy. The rice scheme paid them very good money.

Well highly above the international market price. But this is only a short time situation.

So look forward a little bit.

Thailand as a rice producer, one from many other countries can not control the world market price.

So we have since a half year a clear downslide in international rice prices.

Thailand still build up there stock piles.

On the long run this rice scheme will come to an systemic automatically stop.

So long as Thailand have funds and use all credits they can get, they could run it, but at the end this scheme will stop itself.

To buy his own rice for 23.000 Baht a tonne unlimited, with a world market price around 14.000 Baht a tonne for milled rice.

1000% the bang will come.

So then, what happened then to the rice farmers?

With a stockpile around 20 Mio. Metric Tonne rice then?

The world market can not absorb this quantity.

The world market prices will continue to fall. Absolute oversupply. The government can no longer finance their program. Many farmers, lured by the program will have changed to rice cultivation. And then they will stand before their mill and no one wants then, more rice.

And then the rice farmers will realised that they stay in very deep shit then.

I hope that this madness as soon as possible is terminated.

The only way now: 20 million tons stockpile of milled rice. Give it free to all Thai people. Every household in Thailand, lets say 20 million families will then have 1000 kg rice each.

Enjoy your meal.

I am afraid you have a very limited awareness of the world around you.

With millions of tons of Thai rice stored in warehouses with millions more to come, maybe Thailand should become a major player in the fight against starvation and scenes like these.

There are AFAIK no starving Thais, we live in a land self sufficient in food.

If Thais were given 1000kg each family, many would sell it. Pointless.

Perhaps Yingluck and her brother could donate to Africa and be eligible for a Nobel?

starv1.jpgstarv2.jpgstarv3

Consent, my intention was just to show how big the dimensions are!

Yesterday the UN Food and Agricultural Organisation released a report that says among other things that :

Even if Thai exports increase 26% to 8.5 million tons in 2014 t Thai stockpiles will still grow to 20.4 million tons.

They put global reserves of milled rice at 179 million tons in 2013 - 2014 year.

The price of Thai 5% broken white rice which is used as an industry standard has fallen 23% to US$450 (14,000) per ton this year.

That is against the cost of purchase, milling, storage, cartage etc to the Thai Govt of 29,605 B per ton.

They also said :

The Thai Govts willingness to sell at a loss weighed heavily on market sentiment.

My interpretation : The rest of the worlds rice traders are highly pissed off.

Sorry no link but if you look elsewhere you will find it yourself.

What we are witnessing is the death rattle of the conservatives that have ruled Thailand for the past 200 years.

The old families with close ties to the ancient power structure, with enormous wealth, with close family ties to the military who walk on the heads of ordinary Thais.

Who treat farmers and workers as mere chattels, who have raped the natural resources of the nation, who own just about everything.

They are responsible for the yellow shirts.

They know that if the workers and farmers become organised and elect their own leaders, instead of accepting these Democrat puppets, they lose everything.

They will use every dirty trick in the book including patriotism (the last refuge of the scoundrel) to cling on to power and keep the people ignorant.

That is why they have brought on the last coup, to get rid of the Thaksin and to install a puppet (Abhisit).

However, you can't put the genie back in the bottle, and the people have elected Yingluck.

No matter what anyone says about her brother, she was elected in an overwhelming victory and she is the leader.

Suthep is just a lackey for the old clique and he uses the Yellow shirts and patriotism as his weapons to try and force out a democratically elected government.

Can you imagine what would happen if someone tried the same tactics in the UK?

He would be arrested and locked away.

And so it will pass here too, the old clique trying hard to hang on, but they are on a losing game, the people have had enough of the old ways.

They want change and they want to have a say.

The issue of amnesty for Thaksin is a red herring, any excuse will do to keep the pot boiling, to get back into power.

If Thaksin died tomorrow there would be another excuse to try to force out Peu Thai.

They just don't want to live in a democracy where the law would apply to them equally.

Siam Indica Co Ltd. For those with a short memory that is the revered Arisman's and his wife's company.

Read further and learn.These guys are up to their scrawny necks in this crap.

Mr Warong said his own investigation found there were alleged irregularities in the rice deal with China.

GSSG Import & Export Corp, a China-based trading firm, which bought rice from Thailand, was represented by a man who authorised a resident of Phichit's Bang Mun Nak district to sign the rice deal on his behalf, said the Democrat MP.

The man was an assistant of Pheu Thai Party MP Rapeepan Pongruangrong, wife of red-shirt leader Arisman Pongruangrong, he said.

The plot thickens.

http://assistamerica.countrywatch.com/rcountry.aspx?vcountry=170&topic=CBWIR&uid=6067023

Someday this will all be on show.

Hopefully, but I fear that the flow of money, was only partially documented.

The evidence being destroyed, the documents are burned, papers disappear, bank accounts are resolved, etc.

For the taxpayer, it will then be such that he knows he had 100 baht in the purse, now only 20 baht in there, and no one can say where the 80 baht remained.

Connecting a few lies and away is the money / Treasury.

They must improve their financial control systems pronto.

I can understand that the people are on the streets, and have enough of it.

And it is the taxpayer on the street and not the farmers (of which has almost paid no taxes).

Equitable redistribution for the common good, yes, but not with this idotic rice scheme.

At the end the rice farmers will realize that they and their children have been buggered.

What in 'tarnation is a company like this doing in the rice trading business?

http://www.cccme.org.cn/shop/cccme2099/index.aspx

Agree, more then dubios.

Looks more like a letter box entity.

Number Of Employees：50-100

.....Christmas Decorations?...

" does not have enough evidence"
How much evidence they need then?
Hurry up please!
And please do not tell me, that in this 687.000.000.000 Baht heist on the public finances, everything was correct!?
Really no corruption?
No one has cheated?

No people have exchanged large amounts baht for hard currency in the Chinese money dealers shops?
Popular're the big 500 Euro bills.
A suitcase with 40 Kilos is around 20 Mio Euros, that is now 860 Mio Baht.

Not enough evidence?
And this writes The National Anti-Corruption Commission of Thailand.
It is depressing.

RT@Saksith: TR @wichudaphimphan: [Fmr PM] Somchai Wongsawat’s family leaving the country for London [on] Thai Airways International Flight 910

I hope the Thai and English customs will check there suitcases.

Just a quick question on this scheme what would happen if the Thai baht was to depreciate by let's say 15% or more to the USD ?.Just doing some simple maths and rounding things off . 1 tonne of rice is about $300 Usd approx 9000 baht if prices stayed the same and the baht dropped 15% that would make 1 tonne of rice around 10,350 baht . Makes you wonder if the government really wants to stop the rallies ect .

9.000 or 10.000 Baht doesn´t matter.

Today is Tuesday, a work day. Look straight Parliament TV live. Would say empty hall. Where are all the people's representatives now?

What is more democratic than an elected government?

I would hope that both parties to take a step forward. And would think together, what would be the best for their country.

Well, his sisters left ten days ago for London and by the nature of the booking it seems that they've been gone for a while; possibly on a long stay visa? 8 pieces of luggage with a combined 156 kilogrammes; some canned shrimp paste or similar?

156 kilogrammes.

That is a heavy luggage for two sisters.

Hopefully nothing is wrinkled.

I bet there was no rice from the stockpils in it.

Too bad, apparently the english customs have not looked inside.

The Thai Government keeps using phrases like "Revolving Fund" to make this fiasco sound sensible - or even possible - however that's a complete misnomer.

A true Revolving Fund is where - for example - one takes a Loan from the Bank, buys Product with that money and then sells it on for, as a minimum, the same amount paid for the Product but most usually for a Profit - from that Income one pays off the Loan and uses the Profit for other endeavours.

One repeats the same process for as long as the Loan is still available and is being regularly repaid, or "Topped up" by the Borrower as per any agreement with the Bank.

In no way can this situation be funded by such a "Revolving Fund" arrangement.

Money is being borrowed from the (Government Controlled) Bank and used to buy a Product at well above the best possible Market (selling) price: Even if every Tonne of Rice purchased was immediately sold - not kept in Warehouses - the Scheme is buying at Baht 15,000.- per Tonne and selling at Baht 10,000.- per Tonne, as someone already Posted, add in Administrative and Storage Costs and the Government is losing over Baht 16,000.- per Tonne: Admin and Storage (and obviously Corruption) expenses must be paid from the BAAC Loan so whatever Loan Facility the Scheme has arranged with the Bank the amount outstanding, due to be paid back to the Bank, keeps increasing.

It's even more basic than Economics 101.

I can hardly wait to see what reception the upcoming "Bond" receives in the Financial Marketplace.

Patrick

agree 100%

The shocking thing is, that the Treasury believes there are still currently BT500 Billion in cash lieing around in the BAAC.

They must have confused with the plus and minus symbols on their calculators.

.

I like to agree with the speakers from the Thai Chamber of Commerce (TCC).
Cause and consequences clearly described.
The state budget is not a Self-service store!

It would be interesting to put a real forensic accounting team in there and do a full audit.

incredible that such an investigation does not take place.

<snip for brevity>

Thailand does not bring its rice into the market and stockpiled them.

What happens to the world market price? The price falls!

On the futures exchange there must have some people earned fantastic money.

On the sales side, Thailand is not immune from the market. There's too much other providers / producers and substitution products:

<snip to brevity>

The Bank of Agriculture and Agricultural Cooperatives (BAAC) reported they ran out of funds.No money.

Now they issue bonds for the Bt75 billion + hope there coming Bt24 billion from the rice sales soon in.

irresponsible

<snip to brevity>

I myself just took the precaution of removing sufficient funds, from my own (different) bank, just-in-case. Others too might think that a wise precaution ?

If this were not so sad.

If they get the 2 trillion in hand, then the next two generations will have to pay back with compound interest over the next 50 years, around 6 trillion Baht.

The farmers now have money.

So they will buy new TVs, Cars, some boxes of beer and some gold.

I will redeploy my portfolio.

They still believe that they have helped the farmers, but Thailand is not more rice export nation No 1 in the world,

the competitiveness is severely damaged for the next years.

I keep wondering where the likes of GK and a few other PTP supporters are when this nonsense comes out. They where here talking it up and what a great deal it would be in 2011 but not a word in defense the last year. The only thing they can do is say on Mark did this or that when he was PM totally off topic.

Correct. And of course they will point our that this is a democratically elected government, who should be allowed to govern and not constantly blocked by those reactionary Dems and Judiciary. Democratic principles are always followed by PTP according to their sympathizers.

It would be interesting to put a real forensic accounting team in there and do a full audit. The real rice subsidy losses and where the money really went, what happened to the 120 million "emergency" flood budget, the subsequent 350 million water management budget and the items of overspending already claimed to be being investigated, i.e. the clocks etc.

Of course it will never happen. PTP are desperate to get their hands on the 2.2 trillion to keep the gravy train going as long as possible.

No other country in the world would put up with this amount of lies, corruption, contradictions, illegal actions and blatant hypocrisy from a government, regardless of how they were elected. Where is the PM/DM in all of this - making vague promises that never get delivered, claiming to fight corruption, never in parliament or doing her job etc etc.

PTP treat the public like some public company directors used to treat shareholders - little white lies, fudged creative accounting, promises of "jam" tomorrow", and all whilst lining their own pockets. Then "bang" suddenly it all comes crashing down.

It's a sad time for Thailand.

"BANGKOK, Nov 23 - The Commerce Ministry stood firm that it has enough budget to subsidise the rice pledging plan which needs a circulating fund of Bt500 billion."

There some good news, but hang on.

"He said the government has spent Bt680 billion to purchase rice and returned Bt180 billion to the BAAC, adding that the BAAC has Bt500 billion revolving fund for rice purchases until the end of this year."

So there were overdrawn by 680 billion baht and now they are overdrawn by 500 billion baht, so they have zero balance. How is that enough budget to subsidise the plan? But wait there's more.

"The BAAC was allocated an extra Bt82 billion for next year's rice subsidy, Bt55 billion of which will be spent on rice subsidy for the 2013/2014 harvest, he said. Adding Bt24 billion from the Commerce Ministry, the BAAC will have a revolving fund of Bt79 billion which is sufficient for the scheme, said Mr Tanusak."

So now he says the BAAC doesn't have enough budget and must be allocated extra funds which will be funded by the Public Debt Management Office who will increase their debt load.

Hmm, this spin doesn't hold water, sounds like more misdirection and a case of robbing Peter to pay Paul, a sure formula for financial disaster.

The ones who are duped the most are the ones who cut the farmer's rice (one of them is my wife), because farmers will only pay after they have sold the rice. We advance everything for the farmer, gasoline, salaries to the workers, commission to the one who bring us the customers, repairs, 3 meals per day for all the workers including whiskey, etc, etc. And now we have to wait even 45 days longer. But who believes the BAAC will get the money within the time frame they publish? This is Thailand after all.