Farmers Unsure Of Benefits From Thai Govt Scheme; Rising Costs A Worry

[webfact]

RICE PLEDGING

Farmers unsure of benefits from govt scheme; rising costs a worry

Petchanet Pratruangkrai

The Nation

Farmers unsure of benefits from govt scheme; rising costs a worry

Rice farmers are unsure whether to bring their crop under the rice-pledging programme as they are doubtful about the benefits compared with the previous income-guarantee scheme because of rising costs.

The pledging programme took off yesterday as scheduled. The government opened counters in 29 provinces for farmers to participate in the project. The scheme has been delayed in some provinces because of the floods. Farmers say the price subsidy alone is not enough. They want the government to help reduce the cost of production and operations. Rice plantation costs have been skyrocketing each year because of rising wages and fertiliser prices.

Farmers also face higher costs of harvesting with a daily wage of Bt300 per rai, and Bt1,500-Bt2,000 for truck service to carry the rice from plantation areas to rice mills, for the rice-pledging.

Sombun Kongpoh, a farmer in Bang Bua Thong district, Nonthaburi, said he was not sure which of the two schemes - the pledging project or price guarantee - would give him better returns.

"The cost of fertiliser, transport, and labour for harvesting rice have increased each year. I earned about Bt140,000 from the guarantee project, while the pledging project is expected to give similar returns," he said.

Rising expenses

Sombun has 20 rai (3.2 hectares) of rice plantation, which is expected to produce 18 tonnes of paddy rice. He estimates the total production cost for his field at about Bt100,000.

However, the cost of fertiliser has gone up continuously. Fertiliser for the main crop costs Bt750 per 50-kilogram bag, up from Bt650.

Meanwhile, during a videoconference meeting with pledging spots nationwide, Prime Minister Yingluck Shinawatra said from the Commerce Ministry that the government was confident the pledging would create higher incomes for farmers.

She also instructed concerned officials to monitor the pledging closely and prevent fraud or rice circumvention during the pledging.

Deputy Commerce Minister Poom Sarapol said the government would ask Rak Prathet Thai MP Chuwit Kamolvisit to provide a video clip to the police and the Department of Special Investigation for further investigation into rice smuggling.

On Thursday, Chuwit showed four clips of smuggling of paddy rice, gas cylinders and workers from Cambodia. Because of the high subsidy price of Bt15,000 per tonne for paddy in Thailand, smuggling gangs are trying to bring in rice from neighbouring countries, where the cost of production is lower.

Yanyong Phungrach, permanent secretary at the Commerce Ministry, said it would not be easy for millers to smuggle in rice as the government had restricted rice movement in border provinces.

To prevent rice circumvention and corruption under the pledging scheme, the government is also planning to set up a national committee to monitor the programme.

On the first day of the project, many farmers expressed interest in joining it, as they had managed to avoid the floods. So far, 120 of 688 millers have joined the programme. Some millers have been affected by the floods, while some have not yet signed contracts with the government to join the pledging scheme.

-- The Nation 2011-10-08

[webfact]

Key rice exporter Thailand moves to lift prices

BANGKOK, October 8, 2011 (AFP) - Thailand introduced a new rice price scheme Friday that aims to boost farmers' incomes but has raised concern the food staple will become more expensive on global markets.

The programme, which lifts the price that farmers receive from the government by about 50 percent, was one of the main electoral pledges that helped sweep Prime Minister Yingluck Shinawatra to victory in July polls.

"We've been selling our rice too cheaply. This time we will sell at the actual cost plus a small profit," said Charnchai Rakthananon, director of the Thai Rice Mills Association.

"We have been covering the loss so the world can eat cheap rice."

But the Thai Rice Exporters Association, concerned that the country could lose out to competitors, has warned that the price of Thai rice could hit $800 per tonne on world markets, up from about $600 in recent weeks.

"We cannot sell at $800 because no one will buy," said the group's honorary president Chookiat Ophaswongse.

The government says the move will not affect the kingdom's dominant status in the market and will benefit 3.7 million farming households.

The initiative is expected to get off to a slow start, following widespread floods that have inundated swathes of the country and damaged about 10 percent of rice paddy in Thailand, the world's top exporter.

Rice is the staple food for more than three billion people, about half the world's population, and Thailand produces about one third of global exports.

The rice project is similar to one set up under Yingluck's older brother Thaksin Shinawatra, who was ousted in a 2006 coup and lives abroad to avoid a jail term for corruption.

On the eve of the launch of the new scheme, an opposition lawmaker showed a video clip purporting to show army officials involved in smuggling rice from Cambodia to sell to the Thai government at the increased price.

-- (c) Copyright AFP 2011-10-08

[AleG]

Got to love it, not only they'll screw the poor Thai farmers with this, they'll screw poor people all over the world and have Thai tax payers pay for it.

[haveaniceday]

" Rice plantation costs have been skyrocketing each year because of rising wages " Please spare all the red/yellow stuff, what I am wondering, is that I assumed, possibly wrongly that rice pickers were paid the min wage that are continuously ban-tied around. This indicated that they no not get that min wage, and in fact get much higher.

" Farmers also face higher costs of harvesting with a daily wage of Bt300 per rai " Also, how do they get paid? I do not under stand a system with daily wage per rai. I presume that rice pickers get paid a set amount per day if they pick and finish one rai. Do they go home early if they get it done quickly? What happens if they don't finish a Rai in the day? I wish to have a better understanding of this system.

Edited October 8, 2011 by haveaniceday

[bushwacker]

"We cannot sell at $800 because no one will buy," said the group's honorary president Chookiat Ophaswongse.

The government says the move will not affect the kingdom's dominant status in the market"

If you cannot sell the rice to the world then I am thinking that it is going to affect the dominant status!!!

[wintermute]

"We've been selling our rice too cheaply. This time we will sell at the actual cost plus a small profit," said Charnchai Rakthananon, director of the Thai Rice Mills Association.

"We have been covering the loss so the world can eat cheap rice."

Interesting how they don't understand how supply and demand works. I seriously doubt Thailand was subsidizing rice prices for the rest of the world. It was to keep Thai rice prices competitive because there's stiff competition pushing up against the market in the form of Vietnam.

It's all supply and demand. Thailand has been trying to get other rice producing nations to form a cartel to artificially raise prices ala. OPEC. The problem with that is most other countries realize that there is an opportunity if Thailand sabotages its own agricultural competitiveness and will jockey to become market leaders.

[animatic]

Rice farmers are unsure whether to bring their crop under the rice-pledging programme as they are doubtful about the benefits compared with the previous income-guarantee scheme because of rising costs...

... On Thursday, Chuwit showed four clips of smuggling of paddy rice, gas cylinders and workers from Cambodia. Because of the high subsidy price of Bt15,000 per tonne for paddy in Thailand, smuggling gangs are trying to bring in rice from neighboring countries, where the cost of production is lower.

Part 1

PTP can't tell them what they get,

likely because it will be negligible and they likely won't like that.

Part 2

The previous guaranteed price, a Democratic Party Initiative,

they understand and liked better and it worked for them.

Part 3

Rice millers / Warehousers, are already in cahoots with smugglers

to buy cheap in Cambo and Laos and sell as Thai stock.

A trifecta of screw ups.

The north east populace gave away something they had in hand

for the promise of more in hand maybe, and it turns out to be same old same old.

Edited October 8, 2011 by animatic

[serenitynow]

The World's Biggest Rice Exporter Is About To Take A Huge Risk

http://www.businessinsider.com/thailand-new-rice-policy-2011-10

Meanwhile:

[OzMick]

" Rice plantation costs have been skyrocketing each year because of rising wages " Please spare all the red/yellow stuff, what I am wondering, is that I assumed, possibly wrongly that rice pickers were paid the min wage that are continuously ban-tied around. This indicated that they no not get that min wage, and in fact get much higher.

" Farmers also face higher costs of harvesting with a daily wage of Bt300 per rai " Also, how do they get paid? I do not under stand a system with daily wage per rai. I presume that rice pickers get paid a set amount per day if they pick and finish one rai. Do they go home early if they get it done quickly? What happens if they don't finish a Rai in the day? I wish to have a better understanding of this system.

"This indicated that they no not get that min wage, and in fact get much higher. "

It indicates no such thing. Workers may be demanding higher daily rates, but that doesn't indicate that they have reached, let alone exceeded, the minimum wage which is simply ignored in most rural areas.

I'm assuming the "per rai" is journalist error.

[siampolee]

In our village and on the farms in the area the going rate is around 150-190 baht a day . Lower rates apply if it is a group of fellow farmers working together like a barter system for ones labour, food and drink is included in both rates though.

The 190 baht rate is paid to the travelling work force who have finished their harvest elsewhere and then travel to earn money by harvesting others rice. Basically they would be classified as contract labourers.

Work on rice harvesting is normally started as early as possible and continues as late as possible , tractors providing light at night or early morning as needed. There is no set work time, it's not like picking fruit or vegetables in a western farming environment.

With all due respect to, " haveaniceday>" perhaps he or she would be better informed if they were actively involved in the farming industry and the way the farmers work here.

Edited October 8, 2011 by siampolee

[Mosha]

Perhaps the Red Village Puy Yais are struggling to explain the benefits to the farmers.

[jimbeam1]

" Rice plantation costs have been skyrocketing each year because of rising wages " Please spare all the red/yellow stuff, what I am wondering, is that I assumed, possibly wrongly that rice pickers were paid the min wage that are continuously ban-tied around. This indicated that they no not get that min wage, and in fact get much higher.

" Farmers also face higher costs of harvesting with a daily wage of Bt300 per rai " Also, how do they get paid? I do not under stand a system with daily wage per rai. I presume that rice pickers get paid a set amount per day if they pick and finish one rai. Do they go home early if they get it done quickly? What happens if they don't finish a Rai in the day? I wish to have a better understanding of this system.

The first year that I lived in the sticks, we had a particularly good rice crop. It became necessary to employ help to cut the rice. The national limit was not of any importance, because all payments were cash in hand. A guy and his wife were employed and given their own field/s to cut. They were paid by the amount. The guy started at 8.00am worked straight through until 5.00pm or beyond. Between himself and his wife they were earning 1000 baht a day plus.

jb1

[ericthai]

" Rice plantation costs have been skyrocketing each year because of rising wages " Please spare all the red/yellow stuff, what I am wondering, is that I assumed, possibly wrongly that rice pickers were paid the min wage that are continuously ban-tied around. This indicated that they no not get that min wage, and in fact get much higher.

" Farmers also face higher costs of harvesting with a daily wage of Bt300 per rai " Also, how do they get paid? I do not under stand a system with daily wage per rai. I presume that rice pickers get paid a set amount per day if they pick and finish one rai. Do they go home early if they get it done quickly? What happens if they don't finish a Rai in the day? I wish to have a better understanding of this system.

You usually hire a team of workers and then you pay by the rai. Dont know anyone that pays by the day, other wise not much work gets done. If you have 10 rai you pay them to cut the 10 rai if it takes 1 day or 10 days you still pay the same 300B per rai (3000B total) So they dont get a daily wage they get paid by the rai.

[SICHONSTEVE]

"Rice farmers are unsure whether to bring their crop under the rice-pledging programme as they are doubtful about the benefits compared with the previous income-guarantee scheme because of rising costs".

HaHaHaHaHaHa!!!!!!! Told you so!!!! Of course Pheu Thai wil help the farmers and the Thai people - what a bunch of lieing wasters they are!!! Serves them right - be prepared for tough times ahead .

Edited October 8, 2011 by SICHONSTEVE

[louse1953]

" Rice plantation costs have been skyrocketing each year because of rising wages " Please spare all the red/yellow stuff, what I am wondering, is that I assumed, possibly wrongly that rice pickers were paid the min wage that are continuously ban-tied around. This indicated that they no not get that min wage, and in fact get much higher.

" Farmers also face higher costs of harvesting with a daily wage of Bt300 per rai " Also, how do they get paid? I do not under stand a system with daily wage per rai. I presume that rice pickers get paid a set amount per day if they pick and finish one rai. Do they go home early if they get it done quickly? What happens if they don't finish a Rai in the day? I wish to have a better understanding of this system.

You usually hire a team of workers and then you pay by the rai. Dont know anyone that pays by the day, other wise not much work gets done. If you have 10 rai you pay them to cut the 10 rai if it takes 1 day or 10 days you still pay the same 300B per rai (3000B total) So they dont get a daily wage they get paid by the rai.

If no money available payed in rice.

[khaowong1]

Every time I hear the word "Scheme" I start looking over my shoulder. Somebody is going to stick it to me.

"We cannot sell at $800 because no one will buy," said the group's honorary president Chookiat Ophaswongse.

Why is nobody listening to this guy. If you can't sell the rice, it don't matter what price you put on it.

Hopefully, they won't just stockpile the unsold rice till it rots.

Hopefully they will give the unsold rice away to the people who needs it.

Hopefully.

But don't bet the farm on that happening.

[bigbamboo]

Thai farmers may have selling their rice too cheaply but someone, somewhere is making money because it is still more expensive that that sold overseas by our nearest neighbours.