Inequitable distribution of income root cause of farmers’ debt – TTB Analytics

[snoop1130]

 

The government’s 3-year debt moratorium program for indebted farmers will relieve the pain for only a limited time, but will not actually resolve the debt problem, which is structural and rooted in the inequitable distribution of income from farm produce, according to TTB Analytics of the TMB Thanachart Bank.

 

For example, the selling price of 100% white rice last year averaged 17.5 baht/kg, but farmers only earned 8.8 baht/kg. Their production costs ranged from 8.16-9.32 baht/kg (depending on their land rent and mechanised harvesting costs) compared to 7.25-8.28 baht/kg a year earlier. On top of that, farmers may incur additional expenses for fertiliser and pesticide.

 

In summation, last year farmers earned a net income of only 0.64 baht per kilogram of their rice crops.

 

Full story: Thai PBS 2023-10-05

 

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[impulse]

Let me guess.... 

 

All of the rice has to flow through one of a few families somewhere on its way from the farm to the end user?

 

[OneMoreFarang]

50 minutes ago, snoop1130 said:

will not actually resolve the debt problem, which is structural and rooted in the inequitable distribution of income from farm produce

Is it?

How many Thai farmers understand the concept of saving money and a business plan?

And how many feel rich after the harvest and later they struggle with money?

[bamnutsak]

Brilliant conclusion.

 

Unless it's Debt Forgiveness, it's useless.

 

A debt moratorium is a predatory method a loan shark would use.

 

But rice subsidies are a no-no, right?

 

Meanwhile the government is burning serious coin on diesel fuel subsidies, electricity subsidies, fixing prices on some thousands of items.

 

The Diesel fuel subsidy is costing 14 BILLION baht per month alone.

 

 

Hopefully the self-appointed Minister of Finance has some tricks up his 42XL sleeves.

 

 

 

 

 

 

[StayinThailand2much]

And they just found that out? Perhaps the middlemen get too much, or, alternatively, the farmers should grow other crops (if possible)...

[hotchilli]

13 hours ago, snoop1130 said:

The government’s 3-year debt moratorium program for indebted farmers will relieve the pain for only a limited time, but will not actually resolve the debt problem, which is structural and rooted in the inequitable distribution of income from farm produce, according to TTB Analytics of the TMB Thanachart Bank.

In other words, the farmers are screwed by the middle men and processors.

Start their own cooperative.

[BritManToo]

5 minutes ago, hotchilli said:

In other words, the farmers are screwed by the middle men and processors.

Start their own cooperative.

Easier said than done,

In Petchabun, on our family rice farm, you sell to the middleman or your farmhouse burns down.

[Ben Zioner]

Only solution is to steal money from foreigners. The rich Thais who prey of the  poor farmers are the pride of the  country, hence untouchable.

[dinsdale]

13 hours ago, OneMoreFarang said:

Is it?

How many Thai farmers understand the concept of saving money and a business plan?

And how many feel rich after the harvest and later they struggle with money?

Can you not read? Basically production runs at a loss. Please explain how savings can occur.

[nobodysfriend]

14 hours ago, snoop1130 said:

last year farmers earned a net income of only 0.64 baht per kilogram of their rice crops.

Not enough .

Need to raise the price of their rice .

In local Supermarket I pay 150 baht for 5kg .

30 baht a kilo is still damn cheap .

They all should refuse to sell their harvest if a minimum price is not offered . 

 

[jacko45k]

2 minutes ago, nobodysfriend said:

They all should refuse to sell their harvest if a minimum price is not offered . 

And do what with it?

[atpeace]

The debt moratorium was insane and will cause so much pain in the future.  Farmers in large part are addicted to debt.  Servicing the debt is difficult and detracts greatly from living a satisfying life.  Putting a moratorium on existing debt was heaven for them and they now had the capacity to borrow more which so many did especially the first 2 years.   It was amazing to watch  the endless stream of trucks hauling dirt for new home foundations.  In the worst of times everybody was spending big time!  

 

Now they have much more debt and many won't be able to service it.  They do have nicer homes in many cases but I would guess 25% are now living in shacks while waiting for a miraculous second wave of money to finish their home.  I was racking my brain during the process to figure out what was going on.  It was insane!

[atpeace]

14 minutes ago, nobodysfriend said:

Not enough .

Need to raise the price of their rice .

In local Supermarket I pay 150 baht for 5kg .

30 baht a kilo is still damn cheap .

They all should refuse to sell their harvest if a minimum price is not offered . 

 

That would work in a socialist society but would end badly.  It would also work in a capitalist society if there were no alternatives to Jasmine rice.  Many alternatives so all you can do is feel bad that life isn't always fair.  Tough life being a Thqi farmer and that is why the young are moving into cities and send money home to their aging parents on farms. Sad...

[hotchilli]

1 hour ago, BritManToo said:

Easier said than done,

In Petchabun, on our family rice farm, you sell to the middleman or your farmhouse burns down.

That bad huh?

Maybe the farmers should go out one night with some flaming torches to the millers factory?

[RichardColeman]

15 hours ago, snoop1130 said:

In summation, last year farmers earned a net income of only 0.64 baht per kilogram of their rice crops.

So, farmers would need to sell about 80KG of rice to by a cheap 711 microwave rice meal ?  Just hope they do not wash it down with a bottle of Chang

[retarius]

Get away!!!! The farmers aren't paid enough so they have less income. I never heard anything so stupid in my life. It is because they lack to education to get a 1 million a month salary selling farmers' produce.

[BritManToo]

1 hour ago, retarius said:

Get away!!!! The farmers aren't paid enough so they have less income. I never heard anything so stupid in my life. It is because they lack to education to get a 1 million a month salary selling farmers' produce.

I see a certain 'lack to education' here!