Post-Flood Thailand Stands By Populist Rice Policy

[webfact]

Post-flood Thailand stands by populist rice policy

BANGKOK, November 25, 2011 (AFP) - Thailand will not adjust a raft of populist policies, including minimum wage increases and a new rice price scheme, despite fears they could fuel inflation following devastating floods, a minister said.

The economy is expected to take a major hit as a result of the worst floods in half a century, with the growth forecast for 2011 recently revised down to 1.5 percent, from 3.5-4.0 percent.

"This will not derail us from the aim of rebalancing the economy," deputy prime minister and commerce minister Kittiratt Na-Ranong told reporters in Bangkok late Thursday.

Inflation edged up in October as widespread damage to farmland forced food prices higher. The consumer price index rose 4.19 percent in the month from a year earlier, against a 4.03 percent rise in September.

In addition, Thailand -- the world's biggest rice exporter -- introduced a scheme last month to lift by 50 percent the price that rice farmers receive from the government for the staple grain.

The move, part of an array of promises that helped propel former premier Thaksin Shinawatra's allies to victory in a July election, has fuelled speculation that world prices could be set to surge.

Kittiratt dismissed concerns that the kingdom could hurt itself with the policy, which would make exports less competitive, saying that the global price of rice was too low and should increase.

"Plain rice has good reason to be more expensive than it is... why is plain rice now only a third of the cost of a bottle of water?" he said.

The government is boosting the minimum price farmers receive by buying unmilled rice directly at 15,000 baht ($485) per tonne. The previous price was about 10,000 baht.

"Since the floods, many people have asked me: will we try and adjust policy -- I told them that we won't," he said, adding that if consumers do not pay higher prices for Thai rice, farmers would be helped to grow new cash crops.

The government will also stick to plans to raise the minimum wage from the current 215 baht per day to around 300 baht in Bangkok. "It is the job of any government to take care of our own people," Kittiratt explained.

Huge swathes of central Thailand were left under water for weeks when severe monsoon rains caused massive deluges -- ruining crops, closing thousands of factories and swamping millions of homes.

Exports have taken a hit and tourism has also suffered as visitors are put off by dramatic images of buildings and temples marooned in vast pools of water.

-- (c) Copyright AFP 2011-11-25

[ratcatcher]

I am wondering which country these places are in, since this topic is "POST-FLOOD THAILAND"?

Songkhla gov announces 5 districts in Songkhla declared as disaster zones including Sabayoi-Kuannieng-Jana-Rattabhum-Singhanakorn /TANN

Pattani: Flooding in 55 districts, 203 villages. Disaster zones will be declared today in Pakaharung and Taluboh districts /TANN

Nakornsithammarat governor orders all areas to prepare for flooding due to several days of continuous rainfall /TANN

Oh that's right, they're way down south out of the way and mostly Muslims too. Never mind.

[Mosha]

As has been said elsewhere, the southerners have very little expectation from the government, and I might add especially one led by you know who's sister. I may be wrong but the only seat PTP got in the south was a party list one. What do they do when the poor can no longer afford to buy this rice?

[hellodolly]

Kittiratt says

"The government will also stick to plans to raise the minimum wage from the current 215 baht per day to around 300 baht in Bangkok. "It is the job of any government to take care of our own people," Kittiratt explained."

It would appear that his idea of the people is only Bangkok.

What other area did they increase the flood depth of other areas t keep dry.

Answer zero

Bangkok wages go to 300 baht.

Issan wages stay the same.

[edwinchester]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops.'

The guy is obviously seriously deluded.

[whybother]

Thailand will not adjust a raft of populist policies, including minimum wage increases and a new rice price scheme, despite fears they could fuel inflation following devastating floods, a minister said.

The minister must have missed the announcement about the delay in the minimum wage increase.

[OzMick]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops."

Why not just cut out the middle step? Stop paying subsidies for an uneconomic crop and help them grow something which will give them a better standard of living.

[jonclark]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops.'

The guy is obviously seriously deluded.

Deluded is the correct word as rice is a staple for the worlds poorest people in Africa and Asia and these poor folk don't have extra cash, although no doubt he feels Thai rice is superior and these commoners aren't worthy of eating it.

No doubt other governments are looking to step in and boost their production of rice to compensate for the increased prices of Thai rice.

Wonder how Thai farmers feel about being ;told' to grow something else - is their land suitable and would the yields make it profitable?

I thought the last government was full of crap, but this one is overflowing with the stuff.

[Gweiloman]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops."

Why not just cut out the middle step? Stop paying subsidies for an uneconomic crop and help them grow something which will give them a better standard of living.

Just because you don't eat rice doesn't mean that others don't. Asians are rice eaters and lots of them can afford to pay more.

[dru2]

Yes, they can afford to pay more - but please give me one good reason why they would do so when they will be able to buy at 30 percent cheaper for similar quality in Vietnam? And be assured, Vietnam has it for sale.

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops.'

The guy is obviously seriously deluded.

Deluded is the correct word as rice is a staple for the worlds poorest people in Africa and Asia and these poor folk don't have extra cash, although no doubt he feels Thai rice is superior and these commoners aren't worthy of eating it.

No doubt other governments are looking to step in and boost their production of rice to compensate for the increased prices of Thai rice.

Wonder how Thai farmers feel about being ;told' to grow something else - is their land suitable and would the yields make it profitable?

I thought the last government was full of crap, but this one is overflowing with the stuff.

[animatic]

I am wondering which country these places are in, since this topic is "POST-FLOOD THAILAND"?

Songkhla gov announces 5 districts in Songkhla declared as disaster zones including Sabayoi-Kuannieng-Jana-Rattabhum-Singhanakorn /TANN

Pattani: Flooding in 55 districts, 203 villages. Disaster zones will be declared today in Pakaharung and Taluboh districts /TANN

Nakornsithammarat governor orders all areas to prepare for flooding due to several days of continuous rainfall /TANN

Oh that's right, they're way down south out of the way and mostly Muslims too. Never mind.

There in the south, Suthep's territory,

so in this governments mindset that is not really Thailand anyway.

[animatic]

Thailand will not adjust a raft of populist policies, including minimum wage increases and a new rice price scheme, despite fears they could fuel inflation following devastating floods, a minister said.

The minister must have missed the announcement about the delay in the minimum wage increase.

But the loans they will need to take from 'interested partys' to pull off this scam

will dwarf what the Dems took to salvage Thailands economy after the

world economic crash that the PPP under Somchai COMPLETEY MISSED.

We are still paying off Thaksin buying off the IMF loan from '97

by selling it to Singapore's Temasek for longer smaller payments,

lower interests rates, but much greater final cost... JUST to get the

eyes of the IMF off his treasury manipulations. 10 years now eh?

5 years more to go, or has the vig gone up?

Now we get more of the same, manipulations and huge graft floats,

with little organization and structure, soon to be financed by

HUGE loans, just to keep floating these 'popular programs going',

and con the farmers out of their grandchildren's future for a

few baht more today.

But hey, the farmers will like it and the rice millers will get their cut,

and we can blame the Dems later for making us take the bitter medicine.

TRT/PPP/PTP a name you can trust,

as long as we don't have to change it again.

Edited November 25, 2011 by animatic

[harryfrompattaya]

Yes, they can afford to pay more - but please give me one good reason why they would do so when they will be able to buy at 30 percent cheaper for similar quality in Vietnam? And be assured, Vietnam has it for sale.

Also American now sell the same cheaper overseas and in America

[OzMick]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops."

Why not just cut out the middle step? Stop paying subsidies for an uneconomic crop and help them grow something which will give them a better standard of living.

Just because you don't eat rice doesn't mean that others don't. Asians are rice eaters and lots of them can afford to pay more.

<deleted> - I don't eat rice? Lots of Asians can afford to pay more, and lots can't, and they will buy it elsewhere. But trying to force a price up in a free market with lots of competition is not going to work. Doing it because many growing it need a subsidy to make their income viable is economic stupidity.

[cloudhopper]

TRT/PPP/PTP a name you can trust,

as long as we don't have to change it again.

[CosmicSurfer]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops.'

The guy is obviously seriously deluded.

Deluded is the correct word as rice is a staple for the worlds poorest people in Africa and Asia and these poor folk don't have extra cash, although no doubt he feels Thai rice is superior and these commoners aren't worthy of eating it.

No doubt other governments are looking to step in and boost their production of rice to compensate for the increased prices of Thai rice.

Wonder how Thai farmers feel about being ;told' to grow something else - is their land suitable and would the yields make it profitable?

I thought the last government was full of crap, but this one is overflowing with the stuff.

The Poppy has always been a profitable and successfully grown "Cash" Crop in this part of the world!

CS

[tlansford]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops."

Why not just cut out the middle step? Stop paying subsidies for an uneconomic crop and help them grow something which will give them a better standard of living.

Just because you don't eat rice doesn't mean that others don't. Asians are rice eaters and lots of them can afford to pay more.

in France, you can find 5 kg of rice for 6€. The French could certainly pay, ... let's say ... 8€ ... would anyone notice?

[tlansford]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops."

Why not just cut out the middle step? Stop paying subsidies for an uneconomic crop and help them grow something which will give them a better standard of living.

Just because you don't eat rice doesn't mean that others don't. Asians are rice eaters and lots of them can afford to pay more.

<deleted> - I don't eat rice? Lots of Asians can afford to pay more, and lots can't, and they will buy it elsewhere. But trying to force a price up in a free market with lots of competition is not going to work. Doing it because many growing it need a subsidy to make their income viable is economic stupidity.

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

[OzMick]

'If consumers do not pay higher prices for Thai rice farmers would be helped to grow new cash crops."

Why not just cut out the middle step? Stop paying subsidies for an uneconomic crop and help them grow something which will give them a better standard of living.

Just because you don't eat rice doesn't mean that others don't. Asians are rice eaters and lots of them can afford to pay more.

<deleted> - I don't eat rice? Lots of Asians can afford to pay more, and lots can't, and they will buy it elsewhere. But trying to force a price up in a free market with lots of competition is not going to work. Doing it because many growing it need a subsidy to make their income viable is economic stupidity.

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

[tlansford]

- snip -

Just because you don't eat rice doesn't mean that others don't. Asians are rice eaters and lots of them can afford to pay more.

<deleted> - I don't eat rice? Lots of Asians can afford to pay more, and lots can't, and they will buy it elsewhere. But trying to force a price up in a free market with lots of competition is not going to work. Doing it because many growing it need a subsidy to make their income viable is economic stupidity.

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

[OzMick]

<deleted> - I don't eat rice? Lots of Asians can afford to pay more, and lots can't, and they will buy it elsewhere. But trying to force a price up in a free market with lots of competition is not going to work. Doing it because many growing it need a subsidy to make their income viable is economic stupidity.

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

Short term effect - which will lead to other rice producers increasing production. Glad you realise that the Thai govt wears the difference, only B400+ billion in a scheme that in its earlier inception saw very little reaching the stated intended recipients.

This is a SCAM. Most people seem to realise this, but it has escaped you. educate yourself, I couldn't be bothered.

[Ricardo]

Deputy-PM & Commerce Minister Kittiratt has clearly not noticed, the new PTP-led has already made substantial changes to their populist policies, shouldn't a financial expert be slightly-more on top of things like this ? For example :-

- The major delays & watering-down, on DL's direct-instructions, of the "immediate universal minimum-wage".

- The lap-top computers, which will now be available to fewer-than-half of even-just the Grade-1 students.

- The (wise IMO) cancellation of the farmers' credit-card scam.

- The cut-backs in planned infrastructure-spending.

And isn't there another thread running, saying that many of the rice-farmers are having problems, in actually obtaining the promised prices for their rice, let-along PM-Yingluck's unwise/mistaken promise in one speech of B20,000 per-ton ?

But at least he/they delivered on the tax-cuts for companies, and cut the fuel-prices for a few weeks, and handed-out a few over-priced 'goodie-bags' to some of the flood-victims.

Hopefully the poor will accept that, as his colleague Plodprasop says, after all these were only 'election promises', and not serious commitments which might be relied-upon, now that the votes have been counted.

[whybother]

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

The governments rice policy isn't to "subsidise" the farmers. It's aimed at raising the price by taking stock out of the market.

[tlansford]

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

Short term effect - which will lead to other rice producers increasing production. Glad you realise that the Thai govt wears the difference, only B400+ billion in a scheme that in its earlier inception saw very little reaching the stated intended recipients.

This is a SCAM. Most people seem to realise this, but it has escaped you. educate yourself, I couldn't be bothered.

If you read my posts, you will realize that I made no comments what so ever about the implementation of the Thai government's rice policy.

[whybother]

If you read my posts, you will realize that I made no comments what so ever about the implementation of the Thai government's rice policy.

Which "Thai Program" are you referring to?

[lannarebirth]

<deleted> - I don't eat rice? Lots of Asians can afford to pay more, and lots can't, and they will buy it elsewhere. But trying to force a price up in a free market with lots of competition is not going to work. Doing it because many growing it need a subsidy to make their income viable is economic stupidity.

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

That's just plain nonsense:

Please do notice when the plan was announced and when Rice topped out. Imagine you lived outside Thailand, Were not a current Thai politician, but still got to formulate the Rice subsidy plan. Imagine the money you could make in the futures market, both up and down.

[Ricardo]

That hint of insider-trading 'goes against the grain', it's 'just not rice', 'khaon't me out'

[tlansford]

Thailand is the #1 exporter of rice in the world.

it has been reported that world rice prices started rising on the news of the Thai policy. So I guess it can work...

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

That's just plain nonsense:

Please do notice when the plan was announced and when Rice topped out. Imagine you lived outside Thailand, Were not a current Thai politician, but still got to formulate the Rice subsidy plan. Imagine the money you could make in the futures market, both up and down.

argue with the people who watch the market and write the reports. That was only one of many references to price increases due to the announcement of the policy.

[lannarebirth]

Let me know when the increase reaches 50% - then I'll be interested. Until then, subsidising a major export is STILL economic stupidity.

The Thai program is meant to subsidize rice farmers. Susidizing an export usually means lowering the price.

But the plan has already hiked up global rice prices, by more than 15 percent, according to the International Rice Research Institute.

The interesting part is that if the real price rises, then the cost to the Thai government, which is to make up the difference, goes down.

That's just plain nonsense:

Please do notice when the plan was announced and when Rice topped out. Imagine you lived outside Thailand, Were not a current Thai politician, but still got to formulate the Rice subsidy plan. Imagine the money you could make in the futures market, both up and down.

argue with the people who watch the market and write the reports. That was only one of many references to price increases due to the announcement of the policy.

Well, I'm showing you the chart. Argue with reality if you like.

BTW no one is getting paid the subsidized price for their rice. People I know are taking whatever's offered as they figure the price paid could be lower still next week. I got 16 Bt/ Kg for Hom Mali (Not 20 as promised) and 13 Bt/Kg for Khaow Nieo (Not the 15 Bt that was promised). All dry, All clean, All top grade, My neighbors are now receiving less. I was lucky as my crop came in fairly early. And this is just the start of the looting that will be tied to this program. Just watch.