Cabinet Approves 55 Billion Baht Rice Price Stability Measures

[webfact]

BANGKOK (NNT) - The Thai cabinet has approved a series of financial measures amounting to 55 billion baht to help stabilize rice prices for the 2023/24 harvest season. These measures include providing loans to farmers and agricultural cooperatives aimed at managing the market supply and supporting prices.

 

Farmers will have the option to obtain loans to delay selling their freshly harvested paddy rice with a moisture content of 25% for five months. In this period, the government will offer 12,000 baht per tonne for the rice and an additional 1,500 baht per tonne for storage costs, targeting an absorption of 3 million tonnes of rice.

 

In parallel, cooperatives are encouraged to purchase paddy rice, especially the Thai hom mali fragrant variety, at guaranteed prices to hold until market conditions improve, with the aim to purchase up to 1 million tonnes.

 

This financial intervention follows a previous scheme where farmers were supported to enhance rice quality, a measure that is pending approval by the National Rice Policy Committee.

 

Adjustments to the intervention policy on rice are also being contemplated for the next harvest season to augment farmers’ earnings by diminishing reliance on subsidies and focusing on production efficiency and technological integration.

 

The measures come against a backdrop of market prices for hom mali paddy rice currently below what is deemed fair, as high moisture levels at harvest time significantly reduce the selling price.

by Krajangwit Johjit

 

Source: NNT 2023-11-08

 

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[Ben Zioner]

Don't buy any khrap that is heavily subsidised with the income tax we are going to pay next year. Buy only qualityIn Indian Basmati.

[billd766]

2 hours ago, Ben Zioner said:

Don't buy any khrap that is heavily subsidised with the income tax we are going to pay next year. Buy only quality In Indian Basmati.

Then of course, you will pay even more for rice, as Indian rice has import taxes added.

[Ben Zioner]

19 minutes ago, billd766 said:

Then of course, you will pay even more for rice, as Indian rice has import taxes added.

Sure, but I love Basmati, by far the rice on the planet. 

[billd766]

6 minutes ago, Ben Zioner said:

Sure, but I love Basmati, by far the rice on the planet. 

 

In your opinion, you are right and millions of Thais are wrong.

 

Not to mention the millions of tons of Thai rice exports to other countries.

 

Purely out of curiosity, how much rice do you eat a year?

[Guderian]

Sounds like the start of another rice pledging scheme. Yingluk's last one almost bankrupted the country, but with Thaksin pulling the strings from his hospital office they might actually manage it this time.

[hotchilli]

18 hours ago, webfact said:

The Thai cabinet has approved a series of financial measures amounting to 55 billion baht to help stabilize rice prices for the 2023/24 harvest season. These measures include providing loans to farmers and agricultural cooperatives aimed at managing the market supply and supporting prices.

Let the market dictate the rice price.

[bamnutsak]

18 hours ago, webfact said:

In this period, the government will offer 12,000 baht per tonne for the rice and an additional 1,500 baht per tonne for storage costs, targeting an absorption of 3 million tonnes of rice.

 

 

55 Billion?

 

Heck Yingluck only blew 35 B, and she got a five-year jail term.

 

 

I think there have been rice support schemes for ~ fifty years, good way to keep Somchai down on the farm.

 

"Sixteen tons and what do you get, another day older and deeper in debt."

 

 

 

 

 

To ensure farmers have price incentive to reclaim their mortgaged rice, the program – which began nearly 50 years ago – is supposed to secure the rice at a lower-than-market price, such as 80 percent or 90 percent of market value.

 

https://www.khaosodenglish.com/news/2017/08/24/faq-rice-program-yingluck-trial-explained/

 

Edited November 9, 2023 by bamnutsak

[PETERTHEEATER]

17 hours ago, billd766 said:

 

In your opinion, you are right and millions of Thais are wrong.

 

Not to mention the millions of tons of Thai rice exports to other countries.

 

Purely out of curiosity, how much rice do you eat a year?

Both grains.

[PETERTHEEATER]

1 hour ago, hotchilli said:

Let the market dictate the rice price.

Where's Thaksin's sister when we need her?

[lordgrinz]

"Insanity is doing the same thing over and over again, but expecting different results."

[Eric Loh]

8 minutes ago, lordgrinz said:

"Insanity is doing the same thing over and over again, but expecting different results."

All Thai governments have measures to help farmers. Come in different forms and called differently but basically centered around price pledging, insurance and loan. For Thai people, rice is not only regarded as a staple food and also an essential part of culture. Helping the farmers is a sacred duty of all Thai governments. 

[Srikcir]

3 hours ago, hotchilli said:

Let the market dictate the rice price.

The problem has been that Thai farmers cannot be self- sustaining when the world market price is too low. Thus, government subsidies and export barriers are created to boost farmer revenues that pay debts. 

In August 2023 due to rising food prices, high inflation and fear of rice shortage India banned exports of its non-basmati rice.  

[retarius]

Isn't Yingluck get threatened with jail for this? But then again Prayut got away with it, so what will happen to Srettha. He better watch out.

[bamnutsak]

45 minutes ago, retarius said:

Isn't Yingluck get threatened with jail for this? But then again Prayut got away with it, so what will happen to Srettha. He better watch out.

 

 

Nothing to worry about as the Minister for Agriculture and Cooperatives of Thailand, Capt. Thamanat Prompow, will oversee this scheme.

 

 

[billd766]

2 hours ago, PETERTHEEATER said:

Both grains.

Almost correct with your both comment.

 

https://thainews.prd.go.th/en/news/detail/TCATG230904110535601#:~:text=Data from the Ministry of,20.73% from a year earlier.

 

Data from the Ministry of Commerce showed the kingdom exported rice valued at US$2.56 billion in the first seven months of 2023, an increase of 20.73% from a year earlier.

 

 

[hotchilli]

3 hours ago, PETERTHEEATER said:

Where's Thaksin's sister when we need her?

Waiting for her time to come back

[hotchilli]

2 hours ago, Srikcir said:

The problem has been that Thai farmers cannot be self- sustaining when the world market price is too low. Thus, government subsidies and export barriers are created to boost farmer revenues that pay debts. 

In August 2023 due to rising food prices, high inflation and fear of rice shortage India banned exports of its non-basmati rice.  

Millers take all the profits...