Rice Associations, Farmers Call For Urgent Review Of Pledging Policy: Thailand

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RICE

Rice associations, farmers call for urgent review of pledging policy

PETCHANET PRATRUANGKRAI,

ACHARA PONGVUTITHAM

THE NATION

BANGKOK: -- Farmers and trade bodies have called on the government to review urgently its rice-pledging policy on the grounds that it is distorting prices, benefiting the rich as well as foreign investors, damaging the Kingdom's competitiveness and discouraging the long-term development of Thai rice.

Many poor farmers said the fact that they have to rent plantation areas from landowners and other rich people had paved the way for those people, as well as foreign investors who have purchased Thai farmland, to hire them to grow rice on their land and reap the benefits from the government's high-subsidy price policy.

Thai farmers - in effect acting as employees - merely receive a daily wage in such a set-up.

Saeng Boonpiek, a village headman in Moo 7 in the Narapirom area of tambon Banglane, in Nakhon Pathom, said more than half of the 57 farmers in the village, together growing rice on 1,247 rai, have to rent plantation areas from landowners.

Saeng said he had no option but to rent land at an annual cost of Bt1,500 per rai. The landowner has gradually increased the rent over the past several years after learning that farmers can get higher prices under the government subsidy programmes.

Nipon Toomsing, another Nara-pirom farmer, said he had lost his family land to a new landowner 10 years ago because of high unpaid debt.

"Now, I have to pay 20 tanks of rice [10 kilograms of paddy per tank] per rai a year to the landlord as rent; this has gradually increased from 12-13 tanks previously, in line with rising government subsidised prices," he said.

Nipon, 55, said he was born |into farming and knew only how to be a rice farmer. He feels he now works as an employee for his landlord, |however.

RENTED PLANTATION

Somsak Lerka-nan, chairman of

the agriculture council in Ayutthaya, said two-thirds of farmers in his province must rent rice plantations from Thai landlords, and sometimes form foreign landowners.

An increasing number of foreigners have become landowners after purchasing land through their Thai employees. "I know that the owners of some land in the provinces are not Thai, as they employ a Thai agency to deal with farmers," he said.

Durian, a farmer in Moo 9 of tambon Banglane, said she could well lose her rice-farming land soon as the landowners have recently seized it back and she has no idea what they plan to do with it.

However, there are widespread rumours that the landowners want to sell the rice area to foreign investors, or might want to grow rice on the land themselves.

Thai rice farming and business structure has changed because of the government's price-intervention project aimed at encouraging more businesspeople to grow rice and start up polishing plants.

Thai Rice Farmers Association president Prasith Boonchuey said fewer farmers now owned their plantations because of higher farming costs.

"Now, about 40 per cent out of a total of 60 million rai of rice plantation area is owned by other than rice farmers. The real farmers now have to rent land for growing rice," said Prasith.

Pramoth Vanichanont, honorary president of the Thai Rice Millers Association and former member of National Rice Policy Committee, said many rice plantation areas now belonged to rich people rather than genuine rice farmers.

He urged the government to take such a state of affairs more seriously, as it is spending a huge sum on subsidising investors rather than helping real farmers.

The Yingluck Shinawatra government has spent some Bt281 billion on its rice-pledging programme since its inception last October through to the current second pledging project, which ends next month.

The country also has a larger-than-ever stockpile of 11 million to 12 million tonnes of rice, of which 1.6 million tonnes is carry-over stock from before the pledging scheme began last year.

HIGH PRICES, MASSIVE STOCK

With high prices and a massive stock, Thailand would immediately lose Bt75 billion to Bt80 billion if the stock were sold at current market prices, which are much lower than the guarantee price, he said.

Pramoth said it was time that the government ended its over-subsidy and review the pledging measure to reflect the realities of the situation.

Taxpayers have lost billions of baht each year because of the subsidisation of rice prices, which the current government proclaims is benefiting farmers. However, budgetary spending for the scheme directly benefits the rich, and even foreign investors, who are taking advantage of the price gap, he said.

Many landowners are in effect forcing farmers to change their status and become hired by them to grow rice and participate in the pledging programme, but it is the landlords that receive the benefits instead of the farmers themselves.

"Rice growing has become a business that creates large profits for investors rather than for those involved in the national tradition. They can ensure a high return as the government has set a high subsidy price of up to Bt15,000 per tonne of white paddy, while the cost of production is quoted at Bt5,000-Bt7,000 per tonne," Pramoth said.

Many foreign investors from Taiwan, Saudi Arabia, Kuwait and Singapore now allegedly own rice plantation areas in the North and Central regions to benefit from the current high subsidy prices.

Vichai Sriprasert, honorary president of the Thai Rice Exporters Association and president of Rice-land, a major exporter, said many millers, property developers, exporters and an alcohol tycoon had turned to growing rice on their land and reaping benefits from the government's high-subsidy policy.

He questioned whether the government was really helping poor farmers, or was it millionaires who were the chief beneficiaries: The high pledging price should be reviewed as it has not only damaged export efficiency, but also forced genuine farmers to lose their land to investors.

According to the Thai Rice Exporters Association, exports slumped 45 per cent year on year on from January 1 to June 27, to 3.38 million tonnes.

-- The Nation 2012-08-07

[Buchholz]

Farmers and trade bodies have called on the government to review urgently its rice-pledging policy on the grounds that it is distorting prices, benefiting the rich as well as foreign investors, damaging the Kingdom's competitiveness and discouraging the long-term development of Thai rice.

Boonsong has blown off your criticisms and says no change to the scheme that is... working just as planned.

Commerce Minister brushes off criticisms of rice pledging scheme

BANGKOK, 26 July 2012 (NNT) - Commerce Minister Boonsong Teriyapirom has dismissed the speculation that the Thai government’s rice pledging scheme has made the country lose its position as the world’s number one rice exporter.

The minister also confirmed that the new round of rice pledging would buy rice at the same price as the previous round.

2012-07-26

[Ricardo]

But all Thais are now rich, it's more than six months since the election, and the Big Boss had promised ? !

When will they wake up, and learn not to trust pre-election promises, you have to make it by your own efforts, no rich elite populist politician is even going to solve their problems, except in the most scanty/superficial of ways.

Edited August 7, 2012 by Ricardo

[Skywalker69]

PTP is the best Government ever.......Good job ruin Thailand, soon to be the Greece of Asia.

[apetley]

Every drawback to the scheme that was highlighted before it came into effect is now being shown to be true.

Farmers are getting very little benefit from these subsidies and where I live are becoming very disillusioned with it as they really believed the bs that they would all be better off.

They are getting nowhere near 15k for their rice and in most cases the price to rent paddy has just about doubled.

Oh yes, and their labourers want more money too!

Sent from my GT-I9003 using Thaivisa Connect App

[Nickymaster]

Payback time has ended. Now all the government has to do is launch of full investigation (12 months after EVERYBODY told them to do so) and put op a "I am surprised too" face. Hypocrites.

[Jaivin2011]

So far claims that foreigners getting involved in the rice plantation business have proven to be not true and unfounded as just the usual way for the thai officials to throw smoke. The real "foreigners" here monopolising the rice business and exploiting thereal thai farmers are the Thai Chinese CP Group. Of course they get away as they have the Democrats supporting them and note that one of the Abhisits father is a director of the company. The Pheu Thai will also not investigate them as they have been paid off by these "Chinese Foreigners" If the Red Shirts relly want to do something, stop supporting all the corrupted politicians including the Hakka Chinese Thaksin and the Democrats who only support the Thai Chinese Community and instead the Red Shirts should start a revolution to claim back their lands and businesses from the Thai Chinese.

[Moruya]

quelle surprise!

[Robby nz]

So far claims that foreigners getting involved in the rice plantation business have proven to be not true and unfounded as just the usual way for the thai officials to throw smoke. The real "foreigners" here monopolising the rice business and exploiting thereal thai farmers are the Thai Chinese CP Group. Of course they get away as they have the Democrats supporting them and note that one of the Abhisits father is a director of the company. The Pheu Thai will also not investigate them as they have been paid off by these "Chinese Foreigners" If the Red Shirts relly want to do something, stop supporting all the corrupted politicians including the Hakka Chinese Thaksin and the Democrats who only support the Thai Chinese Community and instead the Red Shirts should start a revolution to claim back their lands and businesses from the Thai Chinese.

So now we have some red supporter telling us it is Abhisits and the Dems fault.

Go PTP and your red gang of thugs.

[renaissanc]

So far claims that foreigners getting involved in the rice plantation business have proven to be not true and unfounded as just the usual way for the thai officials to throw smoke. The real "foreigners" here monopolising the rice business and exploiting thereal thai farmers are the Thai Chinese CP Group. Of course they get away as they have the Democrats supporting them and note that one of the Abhisits father is a director of the company. The Pheu Thai will also not investigate them as they have been paid off by these "Chinese Foreigners" If the Red Shirts relly want to do something, stop supporting all the corrupted politicians including the Hakka Chinese Thaksin and the Democrats who only support the Thai Chinese Community and instead the Red Shirts should start a revolution to claim back their lands and businesses from the Thai Chinese.

If the poor continue to be exploited as they are being exploited at the moment, one day they will say that enough is enough and there will be a massive revolt. If Thaksin isn't back by then, he won't be able to return. maybe this is partly why he is desperate to return now. He sees the writing is on the wall.

[khunken]

So far claims that foreigners getting involved in the rice plantation business have proven to be not true and unfounded as just the usual way for the thai officials to throw smoke. The real "foreigners" here monopolising the rice business and exploiting thereal thai farmers are the Thai Chinese CP Group. Of course they get away as they have the Democrats supporting them and note that one of the Abhisits father is a director of the company. The Pheu Thai will also not investigate them as they have been paid off by these "Chinese Foreigners" If the Red Shirts relly want to do something, stop supporting all the corrupted politicians including the Hakka Chinese Thaksin and the Democrats who only support the Thai Chinese Community and instead the Red Shirts should start a revolution to claim back their lands and businesses from the Thai Chinese.

The CP group are only one of many exploiting the farmers. They do it by monopolising the growing of rice from seedling supply to fixed price purchase of the end product. They are not heavily involved in the land ownership which is where the PT supporters get their pay-off. The rice millers are also big beneficeries of the subsidy with Cambodian rice mysteriously find its way into their warehouses.

I agree with you that the red shirts should start something of a revolution to remove the corrupt elite who currently run the country. They need to start, however, by discarding their hypocritical & corrupt leadership.

[loong]

The main theme of this topic seems to be that farmers are complaining that they borrowed money, secured on their land, without considering how they would repay. When unable to service the debt, they lost the land and are now effectively employees of the new landowners.'

Did anybody hold a gun to their head and force them to borrow money?

[hellodolly]

So far claims that foreigners getting involved in the rice plantation business have proven to be not true and unfounded as just the usual way for the thai officials to throw smoke. The real "foreigners" here monopolising the rice business and exploiting thereal thai farmers are the Thai Chinese CP Group. Of course they get away as they have the Democrats supporting them and note that one of the Abhisits father is a director of the company. The Pheu Thai will also not investigate them as they have been paid off by these "Chinese Foreigners" If the Red Shirts relly want to do something, stop supporting all the corrupted politicians including the Hakka Chinese Thaksin and the Democrats who only support the Thai Chinese Community and instead the Red Shirts should start a revolution to claim back their lands and businesses from the Thai Chinese.

I had forgot until you mentioned it Thaksin is a Thai Chinese and a foreigner. I believe he is a citizen in several countries one of which has a warrant out for his arrest.

[hellodolly]

BANGKOK: -- Farmers and trade bodies have called on the government to review urgently its rice-pledging policy on the grounds that it is distorting prices, benefiting the rich as well as foreign investors, damaging the Kingdom's competitiveness and discouraging the long-term development of Thai rice.

Wasn't that the plan all along make the haves richer.

Last year part of the flood problems was holding back on releasing water from a dam so a big name rice grower could get his crop in.

[jerrysteve]

The Pledge policy created excessive supply or an imbalance between supply and demand.

Prices will infact fall in order to create demand. Sooner rather than later the government will take a big hit.

Unfortunately, the government gave little thought to market dynamics.

Markets show no mercy; and the Rice Farmers are paying the a much higher price, and price is the determining factor in all markets.

Supply and Demand...Economics 101.

[waza]

Abu Dhabi, for example, is developing over 70,000 acres of farmland in Sudan; Saudi Arabia is growing rice in Thailand; while Qatar is investing in agricultural businesses in Kenya, Turkey, Argentina, and Ukraine. http://www.rusi.org/...C4EDDF99D882B5/

Ananta Dalodom, an adviser to the Senate committee on agriculture and co-operatives, attributed mounting interests by Middle Eastern venture capitalists in Thailand to the kingdom's preparedness in all aspects, be it farming technology and expertise, irrigation systems and other infrastructure. "If you want to invest in rice production in Thailand, you just walk in with money. That's enough. But the problem we're gravely concerned about is how Thailand would manage in the future if foreigners who were allowed to invest in growing their own crops control the whole market from production process to end-consumers." http://farmlandgrab.org/post/view/6197

http://www.agriculturalvideos.com/agriculture-in-saudi-arabia/thaksin-invites-saudi-arabian-to-see-rice-farming

Edited August 7, 2012 by waza

[apetley]

Found out yesterday evening that locals have put up the rent for local paddy to 2000 bht per rai per crop! Not per year but for each crop. Greedy bastards!

Everyone seems to be doing their absolute damndest to kill off the rice industry.

Sent from my GT-I9003 using Thaivisa Connect App

[Thai at Heart]

Abu Dhabi, for example, is developing over 70,000 acres of farmland in Sudan; Saudi Arabia is growing rice in Thailand; while Qatar is investing in agricultural businesses in Kenya, Turkey, Argentina, and Ukraine. http://www.rusi.org/...C4EDDF99D882B5/

Ananta Dalodom, an adviser to the Senate committee on agriculture and co-operatives, attributed mounting interests by Middle Eastern venture capitalists in Thailand to the kingdom's preparedness in all aspects, be it farming technology and expertise, irrigation systems and other infrastructure. "If you want to invest in rice production in Thailand, you just walk in with money. That's enough. But the problem we're gravely concerned about is how Thailand would manage in the future if foreigners who were allowed to invest in growing their own crops control the whole market from production process to end-consumers." http://farmlandgrab.org/post/view/6197

http://www.agricultu...ee-rice-farming

About 1,000 Thai families currently hold holding 400,000 to 500,000 rai each and are unlikely to dispose of their assets as prices will continue to appreciate in the future.

And I am sure they all till their own soil.

Edited August 8, 2012 by Thai at Heart

[Ricardo]

Abu Dhabi, for example, is developing over 70,000 acres of farmland in Sudan; Saudi Arabia is growing rice in Thailand; while Qatar is investing in agricultural businesses in Kenya, Turkey, Argentina, and Ukraine. http://www.rusi.org/...C4EDDF99D882B5/

Ananta Dalodom, an adviser to the Senate committee on agriculture and co-operatives, attributed mounting interests by Middle Eastern venture capitalists in Thailand to the kingdom's preparedness in all aspects, be it farming technology and expertise, irrigation systems and other infrastructure. "If you want to invest in rice production in Thailand, you just walk in with money. That's enough. But the problem we're gravely concerned about is how Thailand would manage in the future if foreigners who were allowed to invest in growing their own crops control the whole market from production process to end-consumers." http://farmlandgrab.org/post/view/6197

http://www.agricultu...ee-rice-farming

But the reason these foreigners invest, when they want to secure their food-supplies long-term, is precisely because they want/need to grow their own crops and control the whole supply from production process to end-consumers. They bring in cash-investment in irrigation & machinery & expertise & storage/distribution.

What part of that wasn't clearly understood, when they were being shown round Isaan, by the influential Thai middle-men ? It's a bit late to start protesting, or getting "gravely concerned", about this now !

Edited August 8, 2012 by Ricardo

[Thai at Heart]

Abu Dhabi, for example, is developing over 70,000 acres of farmland in Sudan; Saudi Arabia is growing rice in Thailand; while Qatar is investing in agricultural businesses in Kenya, Turkey, Argentina, and Ukraine. http://www.rusi.org/...C4EDDF99D882B5/

Ananta Dalodom, an adviser to the Senate committee on agriculture and co-operatives, attributed mounting interests by Middle Eastern venture capitalists in Thailand to the kingdom's preparedness in all aspects, be it farming technology and expertise, irrigation systems and other infrastructure. "If you want to invest in rice production in Thailand, you just walk in with money. That's enough. But the problem we're gravely concerned about is how Thailand would manage in the future if foreigners who were allowed to invest in growing their own crops control the whole market from production process to end-consumers." http://farmlandgrab.org/post/view/6197

http://www.agricultu...ee-rice-farming

But the reason these foreigners invest, when they want to secure their food-supplies long-term, is precisely because they want/need to grow their own crops and control the whole supply from production process to end-consumers. They bring in cash-investment in irrigation & machinery & expertise & storage/distribution.

What part of that wasn't clearly understood, when they were being shown round Isaan, by the influential Thai middle-men ? It's a bit late to start protesting, or getting "gravely concerned", about this now !

Ah but of course, the Thai middle men and exporters are always going to be far more sympathetic to the plight of Thai farmers than a foreigner. lol

The level of brainwashing behind sustaining this policy to benefit largely Thai Chinese traders is quite astonishing. They are in it to make money as much as any other, but for some reason, allowing them to exploit the Thai farmer is perfectly ok, but allowing foreigners to come in, who, might actually pay a baht more, or invest in improving the yields and quality beyond what they are today is deemed unacceptable.

[somtumlion]

Farmers voted PTP in - they are reaping what they sowed.

When you vote in bugger'ers, don't be surprised when you get buggered.

[otherstuff1957]

the Red Shirts should start a revolution to claim back their lands and businesses from the Thai Chinese.

The revolution worked well in Cambodia, didn't it? They got rid of their elite and it is now an egalitarian paradise...

Edited August 8, 2012 by otherstuff1957

[waza]

Abu Dhabi, for example, is developing over 70,000 acres of farmland in Sudan; Saudi Arabia is growing rice in Thailand; while Qatar is investing in agricultural businesses in Kenya, Turkey, Argentina, and Ukraine. http://www.rusi.org/...C4EDDF99D882B5/

Ananta Dalodom, an adviser to the Senate committee on agriculture and co-operatives, attributed mounting interests by Middle Eastern venture capitalists in Thailand to the kingdom's preparedness in all aspects, be it farming technology and expertise, irrigation systems and other infrastructure. "If you want to invest in rice production in Thailand, you just walk in with money. That's enough. But the problem we're gravely concerned about is how Thailand would manage in the future if foreigners who were allowed to invest in growing their own crops control the whole market from production process to end-consumers." http://farmlandgrab.org/post/view/6197

http://www.agricultu...ee-rice-farming

But the reason these foreigners invest, when they want to secure their food-supplies long-term, is precisely because they want/need to grow their own crops and control the whole supply from production process to end-consumers. They bring in cash-investment in irrigation & machinery & expertise & storage/distribution.

What part of that wasn't clearly understood, when they were being shown round Isaan, by the influential Thai middle-men ? It's a bit late to start protesting, or getting "gravely concerned", about this now !

In the same manner, the rumor that former Prime Minister Thaksin invited leaders of a Middle East country to view Thai rice paddies to “showcase Thailand’s primary commodity” as well as to attract foreign investors to Thailand’s rice industry inevitably became the talk of the town. Newspapers were flooded with a legion of bitter rebukes and protests, all which shared the common theme, “He has betrayed our nation.” http://blog.nationmu...int.php?id=4734

Edited August 8, 2012 by waza

[Ricardo]

Ah but of course, the Thai middle men and exporters are always going to be far more sympathetic to the plight of Thai farmers than a foreigner. lol

The level of brainwashing behind sustaining this policy to benefit largely Thai Chinese traders is quite astonishing. They are in it to make money as much as any other, but for some reason, allowing them to exploit the Thai farmer is perfectly ok, but allowing foreigners to come in, who, might actually pay a baht more, or invest in improving the yields and quality beyond what they are today is deemed unacceptable.

Quite, once can only hope that the workers employed by these wicked foreigners might learn something, from the example set by foreign capital/expertise, and spread that knowledge elsewhere within the Thai farming-community.

And equally that the foreigners may also learn, from investing in Thailand, that would be a 'win - win' situation, for everyone but those who stand to profit by keeping Thai farmers poor.

In the same manner, the rumor that former Prime Minister Thaksin invited leaders of a Middle East country to view Thai rice paddies to “showcase Thailand’s primary commodity” as well as to attract foreign investors to Thailand’s rice industry inevitably became the talk of the town. Newspapers were flooded with a legion of bitter rebukes and protests, all which shared the common theme, “He has betrayed our nation.” http://blog.nationmu...int.php?id=4734

Now that's what I might call an influential middle-man. But he wouldn't ever do anything, against the interests of the country or his poor rice-farming supporters, would he ?

Edited August 9, 2012 by Ricardo