Thailand Rice-Pledging Scheme Headed For Disaster: Academic

[webfact]

RICE-PLEDGING PLAN

Scheme headed for disaster: academic

Wichit Chaitrong

The Nation

BANGKOK: -- The Bank for Agriculture and Agricultural Cooperatives (BAAC) plans to provide Bt120 billion to support the government's rice-pledging scheme for the second crop running from this month until September, while an academic has warned that the scheme is heading for disaster, as it is damaging the market mechanism and leading to high inflation.

Luck Wajananawat, president of the BAAC, said yesterday that the bank had estimated providing Bt120 billion for the government to finance its rice-pledging scheme for the second crop that started on Wednesday and will continue until September 15. Production is expected to be 11.11 million tonnes of unmilled rice and the government will not limit the rice volume for the scheme.

Farmers in the South would join in from July 1 until October 31, he said. The implementation of the rice scheme for the first crop season, starting last October, came to an end on February 29.

Luck also revealed that as of Monday, the BAAC had provided Bt111.88 billion to 1,105,206 farmers nationwide who participated in the scheme with 6.67 million tonnes.

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure. Fewer farmers participated in the government programme as a large number of small-scale farmers need cash right away, hence they sold their rice to millers, he said. The government had previously estimated 20 million to 25 million tonnes of rice to be pledged under the scheme.

The government cannot push up the domestic or overseas price to its target, Somporn said. Domestic unmilled rice is currently Bt9,000-Bt10,000 per tonne, far short of the target of Bt15,000 per tonne. Last year's flood disaster might take about 8 million tonnes of rice out of the market.

The price of white rice in the overseas market is about US$500 per tonne, far below the government target of $800, he said.

Thailand's rice trade last year fell behind Vietnam's in the Asean market as it could export only 1 million tonnes against Vietnam's 3 million tonnes because of the high price of Thai rice, he said.

Vietnam sold rice at about $100 per tonne lower than Thai rice.

Thailand is also expected to lose the parboiled-rice market in Africa this year as India's lower price would gain it a larger market share, he warned.

He suggested that the government should help farmers cut their cost of production, as Vietnam does. "The government should not provide a high price subsidy but it could provide a little bit higher than market prices," he said. Too much subsidy ends up damaging the market mechanism and the country stands to lose when the Asean Economic Community is born in 2015.

"The government signs many free-trade agreements but its farm policy reverses the free-trade trend, it is heading for disaster," he warned.

Rice subsidy is expected to cost the taxpayer about Bt100 billion a year while small-scale farmers, who make up the majority, will not benefit from the scheme, he said.

Rice exporters cannot sell much overseas while the government does not know how to sell its stocks without incurring huge losses due to deteriorating rice quality after long periods of storage, he said.

Rice exports in the first two months of this year plunged by 70 per cent compared with the same period last year because of high competition from India and Vietnam, he said.

The government has stocks of about 5 million to 6 million tonnes of white rice. The stock is expected to pile up further as the government is expected to buy about 10 million tonnes of unmilled rice from the second crop.

The rising price of white rice due to government policy in the domestic market is expected to drive inflation, he warned. Farmers will grow more rice and grow less of other crops, which will also lead to high prices of vegetables, fruits and pork, he said.

In the future, Burma, Vietnam and Cambodia are likely to eat into Thailand's market for premium fragrant rice as these countries have substantially improved their rice quality, he said.

-- The Nation 2012-03-02

[virtualtraveller]

It will all sit in warehouses and rot, costing the taxpayer billions, the money seems destined for middle men (read political canvassers), the next election will be overwhelmingly won in the rural areas, and the govt will shrug and say it was all India and Vietnam's fault for under cutting the market. And the poor farmer will be non the wiser.

[lannarebirth]

It will all sit in warehouses and rot, costing the taxpayer billions, the money seems destined for middle men (read political canvassers), the next election will be overwhelmingly won in the rural areas, and the govt will shrug and say it was all India and Vietnam's fault for under cutting the market. And the poor farmer will be non the wiser.

That's not entirely true. A large portion of it will be stolen before it rots.

[DP25]

Rice subsidy is expected to cost the taxpayer about Bt100 billion a year while small-scale farmers, who make up the majority, will not benefit from the scheme, he said.

Its not intended to benefit small farmers. It's intended to be a cash handout to national and local elites, in exchange for support for Thaksin's pardon and the return of his confiscated billions.

[airconsult]

Ah - Thailand is not the only country who has had this problem gradually aligning the production by farmers to the changes in the global market.

For an example, the Australian Wheat Board - started originally for WW1 to manage an important foodstuff, then re-created in WW2.

Subsidies to farmers ceased a little over 20 years ago, but the AWB remained government controlled as sole exporter until 1999 when it was privatised, however it still has the sole export license and accounts for 15% of the international market in wheat. Good article (even if long) as it points out the importance of crop rotation - something that a lot of the time seems to be ignored here in LoS.

http://www.abs.gov.au/ausstats/[email protected]/Previousproducts/1301.0Feature%20Article212006?opendocument&tabname=Summary&prodno=1301.0&issue=2006&num=&view=

As an aside - 2012 for Aust looks to be a production of 26 million tonnes of wheat.

http://www.bloomberg.com/news/2011-10-18/wheat-stockpiles-in-australia-seen-nearing-record-as-coal-lures-rail-cars.html

Cheers

[AleG]

This taxpayer is not happy at all.

[mayday49]

Glad I moved to Viet Nam....I own my land.....

[CalgaryII]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network dumping on the Government.

Wot duz that tell ya!

Edited March 2, 2012 by CalgaryII

[whybother]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network.

Maybe they should have named it "The Institute Loving Club" or do the red shirts have a patent on "Loving Club" names?

[CalgaryII]

It will all sit in warehouses and rot, costing the taxpayer billions, the money seems destined for middle men (read political canvassers), the next election will be overwhelmingly won in the rural areas, and the govt will shrug and say it was all India and Vietnam's fault for under cutting the market. And the poor farmer will be non the wiser.

Could it be the fault of voters put off by the arrogance of one side of the political divide?

To denigrate this Government's certain re-election in advance, is so much folderol.

[CalgaryII]

Rice subsidy is expected to cost the taxpayer about Bt100 billion a year while small-scale farmers, who make up the majority, will not benefit from the scheme, he said.

Its not intended to benefit small farmers. It's intended to be a cash handout to national and local elites, in exchange for support for Thaksin's pardon and the return of his confiscated billions.

Thaksin haters sure manage to seguay things to their indoctrinated perspectives.

[lannarebirth]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network dumping on the Government.

Wot duz that tell ya!

Everyone knows the Rice Pledge Scheme is a failure and EVERYONE knew it before it was initiated. What, are you new here? It was never intended to work, just distribute the treasury.

[belg]

all this populist crap is going to hurt the farmers and specially the tax payers in the long run... small profit in short run and thai people are blinded... who will pay $800 dollar in stead of the world price of $500 ? maybe if the farmer's throw in 1 daughter for free per tonne ????

[Thaddeus]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network dumping on the Government.

Wot duz that tell ya!

It tells me that there are some people in this land capable of thinking with their heads and not their hearts.

[scorecard]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network dumping on the Government.

Wot duz that tell ya!

Perhaps you'd like to apply some of the points you raise here to your own ramblings.

[SICHONSTEVE]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network dumping on the Government.

Wot duz that tell ya!

It tells me that the 'intellects of Thailand' can see that everything this 'pathetic' government is doing is ill-thought out and that they are not competent or worthy of running the country!!!

OK, tell me do you think that this rice pledging scheme is a good idea or do you agree with 'said' academics on this??? If you DO think that is going to be a success - please tell me how, I'd be interested to know, given that it will prove to be so costly to Thailand and ironically, to the people it is supposed to benefit!!!.

[anterian]

Ah - Thailand is not the only country who has had this problem gradually aligning the production by farmers to the changes in the global market.

For an example, the Australian Wheat Board - started originally for WW1 to manage an important foodstuff, then re-created in WW2.

Subsidies to farmers ceased a little over 20 years ago, but the AWB remained government controlled as sole exporter until 1999 when it was privatised, however it still has the sole export license and accounts for 15% of the international market in wheat. Good article (even if long) as it points out the importance of crop rotation - something that a lot of the time seems to be ignored here in LoS.

http://www.abs.gov.a...2006&num=&view=

As an aside - 2012 for Aust looks to be a production of 26 million tonnes of wheat.

http://www.bloomberg...-rail-cars.html

Cheers

" the importance of crop rotation - something that a lot of the time seems to be ignored here in LoS."

They don't need crop rotation as each annual flood rotates in a new crop of topsoil.

[OzMick]

Scheme headed for disaster: academic, #1^

Meanwhile, Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said the rice-subsidy scheme had proved a failure

What the hell is "The Knowledge Network Institute of Thailand"?

Stated as if everyone should know this. But noticeable for its' absence is any reference to its source.

Red Flags pop up all over the place when I see this.

Red Flag #1 - It is acknowledged that with the exception of Nitirat, the vast majority of academics are sympathetic to the Opposition.

Red Flag #2 - Universities are also dominated by Oppositional sympathizers

Red Flag #3 - The Opposition has a penchant for laundering its' agenda through others.

Red Flag #4 - The Opposition fabricates organizational entities they like to call networks, as additional agenda laundering outlets.

So here we have reference to an academic, presumably in a University and a so-called Network dumping on the Government.

Wot duz that tell ya!

It tells me that there are some people in this land capable of thinking with their heads and not their hearts.

It tells me that MOST people in this land capable of thinking can see where PTP policies are taking us - economic ruin.

A quick google gave 666 (probably influenced by Satan) hits on the knowledge network, and after a quick scan, it is no surprise that C has never heard of them - they aren't on Red TV.

Waiting to hear the final analysis; exactly what percentage made it to the farmers. In its last run it topped out at 37%. Outstanding!

[Insight]

I guess we can expect every thread on ThaiVisa discussing the government to get the Viking treatment from now on...

[Colin Yai]

I guess we can expect every thread on ThaiVisa discussing the government to get the Viking treatment from now on...

Rape and pillage perhaps?

[phupaman]

Hi All

The first thing Thaksin can do is promote Calgary to the Agriculture ministry to work with his a soul mate Natarwut,And seeing how Yingluck is going to superviseThailand's safety from all future floods.

And how the Transport Minister is about to change the fortune's of Thai Airways . I think all the Reasonable people

in Thailand have to do is just be patient and the house of cards will come crashing down,.

I don't know how much money this government has got to steal. But when the house of cards does come crashing down ,, and it will.. There will be no money left for sure.

phupaman

[Rimmer]

One off topic post removed

[Berek]

They should pay $23 for each 23kg brought to the government on the 3rd of Feb said gov spokesperson Topsy Kretts.

[yoshiwara]

Rice subsidy is expected to cost the taxpayer about Bt100 billion a year while small-scale farmers, who make up the majority, will not benefit from the scheme, he said.

Its not intended to benefit small farmers. It's intended to be a cash handout to national and local elites, in exchange for support for Thaksin's pardon and the return of his confiscated billions.

Thaksin haters sure manage to seguay things to their indoctrinated perspectives.

Although Thaksin likes to sell himself as a liberator of the poor, the essential part of his electoral base is an alliance with the North-Eastern landowners. That rules out two things. First, no land reform which threatens the landowners interests and secondly sit on any minimum wage initiatives which threaten said landowners. By funnelling subsidies to the landowners, they (and he, of course) can show some 'generosity' to the agricultural workers without having to put one hand in their own pockets and at the same time keep the pro-Thaksin vote in place. In short the subsidy is in part a political scam. Mr Segue indeed.

[Thaddeus]

Rice subsidy is expected to cost the taxpayer about Bt100 billion a year while small-scale farmers, who make up the majority, will not benefit from the scheme, he said.

Its not intended to benefit small farmers. It's intended to be a cash handout to national and local elites, in exchange for support for Thaksin's pardon and the return of his confiscated billions.

Thaksin haters sure manage to seguay things to their indoctrinated perspectives.

Although Thaksin likes to sell himself as a liberator of the poor, the essential part of his electoral base is an alliance with the North-Eastern landowners. That rules out two things. First, no land reform which threatens the landowners interests and secondly sit on any minimum wage initiatives which threaten said landowners. By funnelling subsidies to the landowners, they (and he, of course) can show some 'generosity' to the agricultural workers without having to put one hand in their own pockets and at the same time keep the pro-Thaksin vote in place. In short the subsidy is in part a political scam. Mr Segue indeed.

I would just love for some of the pro-taky posters to find fault with that post, if they tried it would just be fluff bahh errrm.

C'mon boys, give it your best shot.

[rubl]

The 'Rice Price Pledging Scheme' (aka rip'm) just finished was for period 2011-10-07 - 2012-02-28 with originally THB 410 billion and adjusted (maybe to) THB 350 billion reserved. Does any one out there have figures on how much of this money has actually been spent? If there's any remainding it could be used for the next "rip'm" scheme

[Thaddeus]

The 'Rice Price Pledging Scheme' (aka rip'm) just finished was for period 2011-10-07 - 2012-02-28 with originally THB 410 billion and adjusted (maybe to) THB 350 billion reserved. Does any one out there have figures on how much of this money has actually been spent? If there's any remainding it could be used for the next "rip'm" scheme

I don't think anyone concerned wants to look that closely or publish the results.

[rubl]

The 'Rice Price Pledging Scheme' (aka rip'm) just finished was for period 2011-10-07 - 2012-02-28 with originally THB 410 billion and adjusted (maybe to) THB 350 billion reserved. Does any one out there have figures on how much of this money has actually been spent? If there's any remainding it could be used for the next "rip'm" scheme

I don't think anyone concerned wants to look that closely or publish the results.

You're mostl likely right in your assumption. My question on the THB 420.4 billion 2012 budget of the Ministry of Edudation also remains unanswered. Waiting for the calculator App on the tablet PC some of my nieces and nephews may get really soon now

[MaiChai]

Suppose they could barter the Chinese: rice for tablets? It wont match the 800 dollars a ton though?

[waza]

Another stunning success, strange how people that can think laterally, (academics) can see straight through these corrupt machinations. But the Thaksin lickspittles cant.