PM rules out rice subsidies

[rooster59]

PM rules out rice subsidies

By The Nation

 

 

Prime Minister Prayut Chan-o-cha suggested rice farmers on Friday curb their output in order to prevent oversupply and falling prices.

 

Prayut said that unlike its predecessors, his government does not implement any rice-buying programmes, because such projects caused budgetary burdens to the state.

 

The government would not pay above the world market prices, the general said.

 

 

“Farmers may be happy with such a project. But we must avoid causing budgetary burdens to the country,” he said.

“There is a new law on state financial and monetary affairs. We can’t spend more than the legal limits, or the government will be unable to survive.”

 

The prime minister said that rice farmers have to avoid causing oversupply so that they could prevent falling prices of the crop. He said the production should be in line with demand in the market.

 

“But this does not mean I prohibit farmers from growing rice,” he said, adding that there were attempts to create such a perception.

 

“The focus should be on maintaining quality in order to keep prices” at profitable levels, Prayut said.

 

 

He also encouraged rice farmers to form groups in order to boost their bargaining power, which could help maintain prices.

 

The premier was speaking to some 300 farming representatives from all over the country at Government House. Among them were winners of this year’s outstanding farmer and farming institution awards. The farmers were accompanied by Agriculture Minister Grisada Boonrach.

 

June 8 is National Rice and Farmer Day.

 

After giving his speech, Prayut greeted the farmers and some shouted, “Fight on, fight on”. Prayut laughed and said that he was not fighting anyone but the country’s problems.

 

He also paid attention to T-shirts worn by some farmers carrying the message “Uncle Too’s reinforcement”. He asked jokingly who was behind the idea.

 

“Too” is Prayut’s nickname and he is often referred to as “Uncle Too” by his supporters.

 

Source: http://www.nationmultimedia.com/detail/breakingnews/30347310

 

 

-- © Copyright The Nation 2018-06-09

[Samui Bodoh]

"Prayut said that unlike its predecessors, his government does not implement any rice-buying programmes, because such projects caused budgetary burdens to the state..."

 

Budgetary burdens to the state?

 

How then do you explain the submarines? A job-creation package?

 

The sooner this guy goes, the better off Thailand will be...

 

[YetAnother]

15 minutes ago, rooster59 said:

The prime minister said that rice farmers have to avoid causing oversupply so that they could prevent falling prices of the crop.

ah, the old 'sacrifice for the greater good' mantra; keep yourselves poor so that the other rice-growing countries, notably india, can take your money

[coulson]

38 minutes ago, rooster59 said:

He also paid attention to T-shirts worn by some farmers carrying the message “Uncle Too’s reinforcement”. He asked jokingly who was behind the idea

Maybe they've learned, after the 30,000 strong rally in Samut Somewhere, that supportive chanting and idolizing leads to allocation of budget.

[leeneeds]

???,  I had thought it said TOOL but put glasses on and was

disappointed,

[AGareth2]

55 minutes ago, rooster59 said:

But we must avoid causing budgetary burdens to the country,” he said.

high speed trains?

etc

[simoh1490]

There's no return on a rice subsidy, once that subsidy is paid it's gone and nothing will come back as a result apart from demands for the same next year,  there's an oversupply and prices are falling. At least with the other things the government is spending money there's a potential return at some point.

[AGareth2]

4 minutes ago, simoh1490 said:

There's no return on a rice subsidy, once that subsidy is paid it's gone and nothing will come back as a result apart from demands for the same next year,  there's an oversupply and prices are falling. At least with the other things the government is spending money there's a potential return at some point.

the money will be spent in the economy

[Darcula]

1 hour ago, rooster59 said:

Prayut said that unlike its predecessors, his government does not implement any rice-buying programmes

 

Bah humbug!

 

 

[simoh1490]

1 minute ago, AGareth2 said:

the money will be spent in the economy

Sure, the spending will stimulate consumer spending but there are other ways to do the same thing that will provide a return as well. If they spend X on an infrastructure project using Thai firms that will also stimulate spending but at afterwards there'll be something to show for it which will further benefit the economy, a bridge, a road, a school etc.

[lanista]

yep, not a good idea unless you want to live in exile in cold damp London.

[cornishcarlos]

1 hour ago, rooster59 said:

T-shirts worn by some farmers carrying the message “Uncle Too’s reinforcement”. He asked jokingly who was behind the idea.

 

It's Thaksins' idea, lulling you in a false sense of security...

Just when you thought you had the backing of the poor, boom a Malaysia style election result ?

[Cadbury]

1 hour ago, rooster59 said:

Prime Minister Prayut Chan-o-cha suggested rice farmers on Friday curb their output in order to prevent oversupply and falling prices

Gee whiz, what a good idea. I am sure all the other rice exporting countries in Asia will be rubbing their hands and ready to take up the slack of any cutback in Thailand's export production. 

I seem to recall the government handing out loans to induce farmers to change to other crops. How many of them pocketed the loan and purchased a new truck and continued on rice farming. I also remember reading reports where many rice farmers are locked in debt and have no hope of paying it off. And his advice is for them to cut back production. How about the greedy middlemen cut back their take?

Meanwhile back in City Slicker Land the PM and his friends are living high on the hog and his political toadies get paid handsomely for sleeping or doing next to nothing.

Of course there is no money for subsidies, nor should there be. He needs every baht he can lay his hands on to splurge on the upcoming election. The Thai Niyom slush fund must be running low by now. This election is "all or nothing" for him and the Junta Party.

Edited June 9, 2018 by Cadbury

[mtls2005]

I think the current "government" still has many, many, many, many agricultural subsidies in place. Just not on the scale or under the name used by the dreaded Shinawatras.

 

Many, many, many many other countries also utilize agricultural subsidies to manage variations in supply/demand. Hardly novel or unique.

 

I think the current "government" knows what is best for the Thai people, and how to best distribute a 3 trillion baht budget...satellite surveillance, planes, ships, subs, tanks etc.

 

 

[Anak Nakal]

No subsidy for poor people!

But, subsidy for rich business.

Frog-kisser no play fair.

[Srikcir]

2 hours ago, Darcula said:

Bah humbug! 

"Prime Minister Prayut Chan-o-cha has followed the path of his predecessors, including former premier Yingluck Shinawatra, in addressing the plight of rice farmers hit hard by a price slump.

So far, the Prayut government has endorsed combined spending of Bt53.9 billion in taxpayers’ money to shore up domestic rice paddy prices via rice-pledging and low-interest loan schemes." (my bold emphasis)

http://www.nationmultimedia.com/news/national/30299481

 

 

[robblok]

3 hours ago, AGareth2 said:

the money will be spent in the economy

But the situation will never improve and handouts need to be given each and every year. Better to get to the root cause. That is over supply the farmers are doing this themselves.

 

As for the budget the army could take a lil less their budget only grows. But I am against rice subsidies. Just get an general plan for all the poor people not give rice farmers extra. Just include them in what they give to poor people and increase that. 

[canopy]

I may not agree with all decisions of any government, but I find this to be an excellent move for the farmers and for Thailand. The purpose of a business is to make a profit, not become a burden to the tax payer. Sad as it is to see such a tradition go, but the days when a family could survive off a small rice plot are long over. We can all see that in the poverty that surrounds us. Government subsidies are just a crutch propping up this failed model assuring a longer, deeper cycle of poverty for these people. Thailand needs to switch pronto to profitable use of land. Removing the crutch of subsidies is the surest way to open a path to the poor to finding a better way, whatever that turns out to be, rather than be shackled to this cruel model. The government has already made suggestions on better ideas for land use, though I can't comment on if/how suitable they are in reality.

 

Edited June 9, 2018 by canopy

[sawadee1947]

4 hours ago, rooster59 said:

or the government will be unable to survive.”

Hurrah hurrah hurrah. That's what  we are waiting for. Buy more air craft carriers and subs.... I!!! And find your place in history. 

[Kieran00001]

3 hours ago, simoh1490 said:

There's no return on a rice subsidy, once that subsidy is paid it's gone and nothing will come back as a result apart from demands for the same next year,  there's an oversupply and prices are falling. At least with the other things the government is spending money there's a potential return at some point.

 

Crop subsidies are used in many countries as a way to ensure that farmers do not stop farming, having food again the next year is a return.

 

As for the government spending on things that have a potential return, they have increased military spending to an all time high while also increasing government debt as a result and have tried to offset that by reducing public spending but still remain in more debt, I am not sure where you are coming from, have you been mislead by their vanity projects?

[Eric Loh]

31 minutes ago, Srikcir said:

"Prime Minister Prayut Chan-o-cha has followed the path of his predecessors, including former premier Yingluck Shinawatra, in addressing the plight of rice farmers hit hard by a price slump.

So far, the Prayut government has endorsed combined spending of Bt53.9 billion in taxpayers’ money to shore up domestic rice paddy prices via rice-pledging and low-interest loan schemes." (my bold emphasis)

http://www.nationmultimedia.com/news/national/30299481

 

 

Not only he subsidies rice, he also subsidies rubber. Now he got the cheek to what he say about ruling out subsidies. What a hypocrite. 

[Kieran00001]

8 minutes ago, canopy said:

I may not agree with all decisions of any government, but I find this to be an excellent move for the farmers and for Thailand. The purpose of a business is to make a profit, not become a burden to the tax payer. Sad as it is to see such a tradition go, but the days when a family could survive off a small rice plot are long over. We can all see that in the poverty that surrounds us. Government subsidies are just a crutch propping up this failed model assuring a longer, deeper cycle of poverty for these people. Thailand needs to switch pronto to profitable use of land. Removing the crutch of subsidies is the surest way to open a path to the poor to finding a better way, whatever that turns out to be, rather than be shackled to this cruel model. The government has already made suggestions on better ideas for land use, though I can't comment on if/how suitable they are in reality.

 

 

Remove the farmers crutch, see if they can find another way = excellent move for the farmers - are you sure?

 

In Europe we subsidise our farmers, it ensures we always have a supply of food by keeping their businesses alive despite them being unprofitable at times, it has also allowed us to influence them into diversifying which has brought us a greater variety of foods and helped them financially, it has also brought us a means of protecting the environment.  In most developed countries, subsidies are seen as essential to keeping farming sustainable.

[Kieran00001]

7 minutes ago, Eric Loh said:

Not only he subsidies rice, he also subsidies rubber. Now he got the cheek to what he say about ruling out subsidies. What a hypocrite. 

 

It is just the headline that is misleading.  He rules out rice buying schemes, not rice growing subsidies.

 

[Eric Loh]

11 minutes ago, Kieran00001 said:

 

It is just the headline that is misleading.  He rules out rice buying schemes, not rice growing subsidies.

 

If you read the link that Srikcir posted, you will see that the junta paid higher prices to rice farmers albeit lower than previous government. Ditto rubber farmers, the junta paid higher than global prices and kept in government warehouses. Not at all misleading. Plain as day. Those are buying schemes above market prices. 

[shackleton]

Seems to be quite a few people having negative comments about the Prime Minister

I for one think he is doing very good job on attempting to clear up the corruption

that has dogged Thailand for years

it might seem a little to some people but its a positive start  

 

[Eric Loh]

1 minute ago, shackleton said:

Seems to be quite a few people having negative comments about the Prime Minister

I for one think he is doing very good job on attempting to clear up the corruption

that has dogged Thailand for years

it might seem a little to some people but its a positive start  

 

Even better if he clean up corruption in his own backyard. You know those corruptions that you and me are not allowed to talk. 

[marko kok prong]

The market determines the price,if the market price is 7,000 b per tonne that is what the farmer should expect,if this leaves them with little or no profit they can blame nothing but the market.

[Khun Jean]

1 hour ago, Kieran00001 said:

 

Remove the farmers crutch, see if they can find another way = excellent move for the farmers - are you sure?

 

In Europe we subsidise our farmers, it ensures we always have a supply of food by keeping their businesses alive despite them being unprofitable at times, it has also allowed us to influence them into diversifying which has brought us a greater variety of foods and helped them financially, it has also brought us a means of protecting the environment.  In most developed countries, subsidies are seen as essential to keeping farming sustainable.

So just nationalize food production then and change independent farmers into government workers. Oh wait... that didn't work.....

[Eric Loh]

24 minutes ago, marko kok prong said:

The market determines the price,if the market price is 7,000 b per tonne that is what the farmer should expect,if this leaves them with little or no profit they can blame nothing but the market.

That’s the market side of the equation. The political side may not be so clear cut. 

[Kieran00001]

12 minutes ago, Khun Jean said:

So just nationalize food production then and change independent farmers into government workers. Oh wait... that didn't work.....

 

Are you seriously suggesting that agricultural subsidies lead to communism?