Rice Farmers Call Off Rally

[george]

Rice farmers call off rally

BANGKOK: -- Rice farmers have cancelled a planned protest after the government agreed to launch the rice pledging scheme to shore up paddy price at Bt14,000 per ton, Thai Farmers Association chairman Prasit Boonchuey said on Thursday.

The price intervention process is expected to start today by the Bank for Agriculture and Agricultural Cooperatives but actual payments to farmers will commence on June 15.

-- The Nation 2008-06-05

Farmers win big

BANGKOK: -- The government on Thursday bought off farmers who threatened to blockade four national highways by promising an off-season rice-purchase plan with a minimum price for paddy.

Farmers have called off the blockade for now, but gave Prime Minister Samak Sundaravej and his cabinet just one week to implement the scheme. They promised to block Phahon Yothin, Mittraphap, Phetkasem and Sukhumvit roads if it fails.

The prime minister yesterday called an urgent meeting with his ministers and decided to immediately launch the rice-pledging programme.

The three-month rice mortgage scheme will start today and be supervised by the Finance Ministry"s Bank for Agriculture and Agricultural Cooperatives of Thailand (BAAC).

It will buy up to 2.5 million tonnes of grain. The price of paddy with 15% moisture is guaranteed at 14,000 per tonne, and 15% moisture sticky rice at 9,000 baht per tonne.

The price of unmilled rice has dropped from 13,000 to 10,500 baht per tonne and the price of glutinous rice from 8,000 to 6,000 baht per tonne.

Officials were ordered to sell 2.1 million tonnes of stockpiled rice to foreign markets so the government would have enough money for the programme.

BAAC manager Theerapong Tangtheerasunant said farmers would receive direct benefits because it would end the problem of middlemen lowering the price.

Vichian Puanglamchiak, a member of the Thai Rice Farmers Association, hailed the decision, saying the threatened blockade would not take place.

"As the government has shown its sincerity, we will postpone our road blockade," Mr Vichian said.

He was concerned whether the BAAC could run the scheme effectively.

Previously, the Public Warehouse Organisation (PWO), the marketing arm of the Commerce Ministry, bought rice from farmers.

"I don"t know if the BAAC is familiar with the procedures. Normally, it is the PWO.The BAAC staff may have to learn the ropes," he said.

Ideally, the criteria and procedures for rice pledging should remain unchanged, he said.

"However, the association does not mean the government must buy all rice by tomorrow. We give them one week to get the scheme up and running. If the scheme cannot proceed by then, we will block the roads," he said.

Pramote Vanichanont, chief adviser to the Thai Rice Millers Association, said he was confident the BAAC will be able to implement the scheme.

The PWO had shown it was not capable of doing the job.

Mr Pramote backed the rice-pledging scheme even though it was not tabled at the National Rice Committee for consideration. "Mr Samak wants to stop the farmers" protest before it gets out of hand. As chairman of the rice committee I think he is authorised to make the call," he said.

Rice exporters warned the mortgage price set by the government is too high and would affect rice exports.

Rice Exporters Association president Chookiat Ophaswongse said an appropriate price was 12,000 baht per tonne.

He said rice prices in the world market have started to drop as exporters boost supply. Japan is poised to sell 300,000 tonnes of rice.

"It is risky to set such a high price because the situation is changing. If world market prices drop due to growing supply, Thai exporters will face competition as the local price mechanism is distorted," he said.

Apiradee Tantraporn, directorgeneral of the Foreign Trade Department, said demand overseas is still high and Thai exporters will not be affected.

Rice exports for this year will exceed nine million tonnes.

--Bangkok Post 2008-06-05

[hammered]

Right now is a good time to make demands and threaten demos to back them up as the last thing the government wants is even more people on the streets. I think the truckers are the next group up for the government. Bus companies and rice farmers out of the way for now.

[cloudhopper]

To put this and a couple other related threads into perspective - is there any rule of thumb or educated estimates out there for what rice paddy land under cultivation can currently yield annually, in terms of Baht/rai net?

Edited June 5, 2008 by cloudhopper

[Pond Life]

I think well managed paddy should be able to produce about 1 ton per Rai.

[Martin]

Yield varies a lot from place to place and year to year.

But a ton per rai is around the middle of the range.

This move by the Government was probably crucial, as farmers cannot get yields without first incurring their input costs (particularly fertiliser).

I don't have any figures for Thailand; but on the USA prairies the average cost of getting an acre of corn growing was US$22 in Spring 2007 and is US$77 this year.

We have had a quarter century of food (particularly grains) being cheap to produce because natural gas and oil prices have been low. (Natural gas is the feedstock for making inorganic fertiliser and oil figures large in its transportation and application.)

That has changed at the same time as demand has gone up with the push to industrialisation in China and India.

Hence rising prices, and so the speculators have muscled in which increases the volatility of the market.

A lot of economies are in for a rough ride, but all will feel some effects.

[Nickthegreek]

Guys without the risk of looking stupid!!!

Can anyone explain please what the differences here are..

Paddy ? 14000 per tonne..

I undertand the unmilled rice,but I fail to understand the difference..

It strikes me that everyone would want to sell wet rice or am I being stupid,some clarity from someone would be appreciated..