Thailand approves $682 million in new rice insurance scheme

[webfact]

Thailand approves $682 million in new rice insurance scheme

 

FILE PHOTO: Thailand's Prime Minister Prayuth Chan-ocha poses for a photo with the new government cabinet in Bangkok, Thailand July 16, 2019. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Thailand's National Rice Policy Committee, chaired by Prime Minister Prayuth Chan-ocha, on Wednesday announced 21 billion baht ($682 million) in subsidies to help stabilize prices for rice farmers hurt by drought and a strong baht.

 

Under the new rice scheme, the government will agree to pay farmers a fixed price for a set amount of production if market prices fall below benchmark prices during the main harvest seasons.

 

Thailand is suffering its worst drought in a decade, which has hurt farmers and reduced supplies, lowering the country's rice exports. A strong baht and ample global stockpiles have further curbed sales.

 

"Since the start of the year, Thailand has exported 5.29 million tonnes, a reduction of 22% compared to the same period last year," government spokeswoman Narumon Pinyosinwat told Reuters.

 

"This generated $2.8 billion in revenue, a reduction of 17% compare to last year, and this is due to the strong baht and the drought," she said.

 

Under the new scheme, jasmine rice will be insured at 15,000 baht ($487.49) per tonne up to a maximum of 14 tonnes per household, jasmine rice grown outside of irrigated area will be insured at 14,000 baht ($454.99) for up to 16 tonnes per household, and Prathum Thani jasmine will be insured at 11,000 baht ($357.49) up to 25 tonnes per household.

 

Glutinous rice will be insured at 12,000 baht ($389.99) a tonne up to 16 tonnes per household, while non-glutinous rice will be insured at 10,000 baht ($324.99) up to 30 tonnes per household.

 

Thailand's main rice-growing season begins in May, at the start of the rainy season, for harvest between August and October, while jasmine rice is usually grow in August for harvest in December.

 

The government estimated that the scheme will cover almost four million farmers. It plans to introduce additional measures, including cash handouts to cover the cost of harvesting. These subsidies will be considered by the cabinet next week.

 

The baht is Asia's best performing currency so far this year, gaining around 5.5% against dollar.

 

The country's rice exporter association lowered its annual export target for 2019 to 9 million tonnes from 9.5 million tonnes after a sharp fall in first-half exports.

 

($1 = 30.7700 baht)

 

(Reporting by Panarat Thepgumpanat and Panu Wongcha-um; editing by Richard Pullin)

 

-- © Copyright Reuters 2019-08-21

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[Eric Loh]

New wine in an old bottle. No different from any previous rice pledging scheme. Only this time, no one goes to jail and government will not be disposed. 

[webfact]

Rice-price guarantees ready for Cabinet

By The Nation

 

 

The National Rice Policy Committee on Wednesday approved a Bt21-billion budget to guarantee the price of rice harvested in 2019 and 2020.

 

Deputy Prime Minister and Commerce Minister Jurin Luxanavisit said Prime Minister Prayut Chan-o-cha chaired the meeting, at which it was forecast that 3.9 million members of rice-farming families would be registered for the programme.

 

Cabinet approval will soon be sought for the rice guarantees in five types, Jurin said:

 

•    Rice grown at 15 per cent humidity will be priced at Bt10,000 per tonne with an income guarantee of not more than 30 tonnes per household or not more than 40 rai.

 

•    Glutinous rice is guaranteed a price of Bt12,000 per tonne, for not more than 16 tonnes per household or not over 40 rai. 

 

•    Jasmine rice has been guaranteed a price of Bt15,000, not exceeding 40 rai or 14 tonnes per household. 

 

•    Fragrant rice will be assured Bt14,000 per tonne, not more than 40 rai or not over 16 tonnes. 

 

•    Pathumthani fragrant rice has been guaranteed a price not exceeding Bt11,000, not more than 40 rai or not more than 25 tonnes.

 

The committee assigned the Bank of Agriculture and the Agricultural Cooperatives and Commerce Ministry to prepare the details and a formal budget in accordance with the Financial Discipline Act. 

 

Growers must register with the ministry’s Agricultural Extension Department before October 31, except those in the South, who have until February 28.

 

The Finance Ministry has proposed measures to improve production, harvesting and quality that would see farmers receive Bt500 per tonne, limited to 20 rai each. The committee assigned Finance Minister Uttama Savanayana to discuss the programme with the Budget Bureau, Jurin said.

 

Thai Rice Exporters Association president Charoen Laothammatas called the price guarantee a short-term measure to ensure farmers have a stable income, but in the longer term, the association expects the government to improve the quality of seeds and support farmers in producing higher-quality crops, and to expand their overseas markets.

 

Thailand exports 300,000 tonnes of rice annually to Japan and on average 800,000 tonnes to Iraq and Iran. It also has a government-to-government contract with China to ship up to two million tonnes there. Already 1.7 million tonnes have been sent and the remainder will be delivered later this year.

 

Charoen said global rice production for 2018-2019 dropped by 760,000 tonnes – about 0.15 per cent – from 2017-2018.

 

The global export market declined 4.9 per cent between January and August, when Thailand shipped 5.27 million tonnes, down from 6.15 million tonnes or 22.4 per cent compared to the same period last year. 

 

The value of exports in that same period this year was Bt88 billion, down nearly 17.1 per cent, he said.

 

Thailand ranked second in the world for rice exports in those eight months, behind India.

 

Source: https://www.nationthailand.com/business/30375131

 

-- © Copyright The Nation Thailand 2019-08-21

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[canuckamuck]

 If it loses the country money will the PM be charged the balance? He might have to get some alternate passports ready.

Edited August 21, 2019 by canuckamuck

[daoyai]

That smile says it all.

[Denim]

' We have seized power from the democratically elected party in order to put an end to corruption and populist policies that cost the country billions .'

 

Cool. .......So .....when do you intend to start ?

 

Sometime , later, never by the look of it.

[hotchilli]

Subsidising the farmers again with pledges of financial aid.. why don't the farmers learn to grow an alternative crop, or are they only capable of growing rice ?

[Srikcir]

16 hours ago, webfact said:

The National Rice Policy Committee on Wednesday approved a Bt21-billion budget to guarantee the price of rice harvested in 2019 and 2020.

Interesting economic policy for more rice price supports as the global export market and production decline.

 

5-year Chairman of the National Rice Policy Committee Prayut seems to have become a dedicated follower of Yingluck's rice price guarantees - likely to have the same effect of encouraging more domestic rice production and thereby increasing Thailand's rice stockpile.¹ 

But perhaps not unexpected, Prayut's current rice price support policies are contrary to his previous policy stated in mid-2018:

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

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

Contrast with some recent history of Prayut's rice price policies:

• 2019-03-14: The weekly Cabinet meeting has allocated another 5 billion baht to support rice agriculture during the current production year.   
• 2019-02-21: The cabinet has approved a rice insurance scheme for the 2019 season worth 1.74 billion baht
• 2019-02-13: more than 275 million baht to help rice farmers and maintain the quality of Jasmine rice.  
• 2018-06-19: The Ministry of Agriculture and Cooperatives and Tesco Lotus have continued their cooperation in buying 9,000 tons of rice from agricultural cooperatives in four northeastern provinces.
• 2017-04-19: The Cabinet on Tuesday approved a 1.5-billion-baht debt suspension program for rice farmers who were affected by produce price drop. 
• 2017-04-13: The cabinet has approved three programs aimed at developing rice production output, with a budget totaling over 25 billion baht. 
• 2016-11-08: The Cabinet will today consider a plan for Bt18 billion to be used to help subsidise the price of Pathum Thani and white rice paddy from the current main-crop harvest, after approving a Bt35.9-billion budget last week to help farmers growing Hom Mali rice. 

¹Whatever happened to Agriculture Minister Grisada Boonrach's order in 2018-09-11 to proceed with a corn growing promotion scheme under the government’s San Palang Pracharat public-private partnership initiative? Rice farmers would switch from off-season rice this year to instead grow corn for animal feed on two million rai of land in 33 target provinces. http://www.nationmultimedia.com/detail/national/30356798    

[tomazbodner]

14,000 thb/tonne of Jasmine rice... I thought normal price range was 14-20 thb/kg, which makes this guarantee the same as the low end of the price was anyway. From what I remember, the farmer in documentary said that 14 thb didn't allow him to make ends meet...

[sawadee1947]

Reminds me all of Yingluck's rice scheme.????

 

[sherwood]

Ever tried growing rice or any crop in a drought you half smart people. Try it and see how it might affect your life.

Sure, a drought was forecast but when you have no other income other than what you can produce on your land you have to have a go.

Go back to your office and produce nothing for the good of mankind. Clowns.

 

Next time you have a feed think about where that food came from and the hard working farmer that worked to get it to your plate. Then think about the many people that profited due to that Work.

 

Enough said.

[Redline]

Thailand is on the verge of extinction.  It has no ability to learn, adapt or change in order to even stay at par

[ThaiBunny]

5 minutes ago, Redline said:

Thailand is on the verge of extinction.  It has no ability to learn, adapt or change in order to even stay at par

I wondered why the baht was so strong against other currencies. Thanks

[BobBKK]

SAME SAME  Yingluck but change it to look 'good' - hypocrites 

[Orton Rd]

Animal farm come to life ????

[Redline]

16 minutes ago, ThaiBunny said:

I wondered why the baht was so strong against other currencies. Thanks

No problem ???? the strong baht seems an obsession on TV

[Grumpy John]

12 hours ago, hotchilli said:

Subsidising the farmers again with pledges of financial aid.. why don't the farmers learn to grow an alternative crop, or are they only capable of growing rice ?

Good question!  Some are trying alternative crops.  Some just won't change and other are trapped.  Take for example my wife who has 20 rai of rice land.  We would like to grow trees for timber there but the problem is the land gets flooded in the wet season and the soil is sodden for weeks.  Not good for the tree roots! So instead of being used the land is unproductive.....until we can figure out a solution.....or rent it to a rice farmer!  

[SOUTHERNSTAR]

The only problem is many farmers dont have any rice this year. 

[claynlr]

Anyone have this announcement in Thai?