Thai Cabinet Rejects New Bt405 Billion Rice Pledging Scheme

[webfact]

Cabinet rejects new Bt405 billion rice pledging scheme

BANGKOK, Sept 19 – A proposal for a new round of rice pledging scheme for the 2012/2013 fiscal year which will cost the government Bt405 billion was rejected by the cabinet which openly expressed concern that it will plunge Thailand into heavy indebtedness.

According to government spokeswoman Sansanee Nakpong, the cabinet assigned the finance ministry, commerce ministry, agriculture ministry and budget bureau to re-evaluate the volume of rice to be pledged with the government. The revision must be sent back to the cabinet for approval.

Under the initial proposal, the Bt405 billion budget to pledge 26 million tonnes of paddy will be broken down into Bt240 billion for the yearly (annual) paddy crop, and Bt165 billion for

second-crop paddy. Jasmine rice will be pledged at Bt20,000 per tonne and paddy at Bt15,000 per tonne—the same prices as the previous year.

The cabinet, however, approved additional pledging of second-crop paddy in 2012 from 11.11 million tonnes to 13.31 million tonnes to help farmers who were hit by last year’s floods. The farmers had to resort to the second farming and harvest after floods receded.

The cabinet also approved an agriculture ministry’s rubber intervention proposal by paying Bt30 billion to purchase 300,000 tonnes of rubber from planters between Oct 1 this year2 and March 31, 2013. The first allocation of Bt5 billion will be granted. (MCOT online news)

-- TNA 2012-09-19

[tomross46]

More money should be grated. How do you expect the politicians to buy new Condoes and cars?

Edited September 19, 2012 by tomross46

[Buchholz]

Cabinet rejects new Bt405 billion rice pledging scheme

Besides an additional Five Billion Baht added to the request from four days ago, what else changed that Yingluck's Cabinet turned down what Yingluck was planning to request then?

The government spent about 260 billion baht to purchase 16 million tons of unmilled grain from about 2 million farmers since the program began in October.

Time to infuse more money into the scheme...

PM to request THB400 Billion for rice pledging scheme

BANGKOK, 15 September 2012 (NNT) – Prime Minister Yingluck Shinawatra will ask the Cabinet to approve her request for 400 billion baht to sponsor a new round of the Commerce Ministry’s rice pledging scheme.

The PM has promised that the rice program will be carried out in a transparent manner despite rumors of corruption.

Edited September 19, 2012 by Buchholz

[Thai at Heart]

Interesting development. Lets see how this goes down in the countryside.

[spidermark]

Beautiful. A wise decision. This bone headed policy was collapsing the rice industry with a Marxist policy. Finally sensibility and common sense is prevailing? How refreshing.

Mike Macarelli

Chaiyaphum, Thailand

Sent from my Samsung SIII

[dddave]

I've been reading about this subject for the last year but don't really understand it.

Simple explanation:...... anybody?

[thaicbr]

I've been reading about this subject for the last year but don't really understand it.

Simple explanation:...... anybody?

the Phua Thai party found a way to buy votes without getting done for vote buying..Simple enough for you

Oh and because it is soooooo badly mismanaged the actual farmers are not receiving all of the money so hopefully it will back fire on them.

[kartman]

The let down begins, so all the ground level PTP MP's will be able to say if it was me lads your money would still be coming but the Cabinet said no, knowing they won't have a clue what he's on about and what has fiberboard furniture got to do with it ?.

[daninthai]

Beautiful. A wise decision. This bone headed policy was collapsing the rice industry with a Marxist policy. Finally sensibility and common sense is prevailing? How refreshing.

Mike Macarelli

Chaiyaphum, Thailand

Sent from my Samsung SIII

Nah. 405 billion just wasn't enough for them. They've sent it back to be increased.

[fstarbkk]

At first I thought they're putting the brakes on this gigantic boondoggle, because it's simply gotten too embarassing.

Then I remembered that embarassment is not an issue for this bunch and has never stopped them from doing anything, no matter how absurd.

[dindong]

Cabinet rejects new Bt405 billion rice pledging scheme

Besides an additional Five Billion Baht added to the request from four days ago, what else changed that Yingluck's Cabinet turned down what Yingluck was planning to request then?

The government spent about 260 billion baht to purchase 16 million tons of unmilled grain from about 2 million farmers since the program began in October.

Time to infuse more money into the scheme...

PM to request THB400 Billion for rice pledging scheme

BANGKOK, 15 September 2012 (NNT) – Prime Minister Yingluck Shinawatra will ask the Cabinet to approve her request for 400 billion baht to sponsor a new round of the Commerce Ministry’s rice pledging scheme.

The PM has promised that the rice program will be carried out in a transparent manner despite rumors of corruption.

Hey................., what's a few billion between friends?

[asiawatcher]

Why don't the rice farmers form a co-op and not sell to the Govt - then at least they will earn more per tonne. Or is this not part of the socialist PTP plan? This was done by the grain growers in other countries, stored the stocks, sold a portion to keep the flow going, then when the market demand crept up, they sold at a higher price. It was orderly, sensible and bypassed the stupidity of the Govt making the top dollar and passing nothing back to the farmers.

[dcutman]

Why don't the rice farmers form a co-op and not sell to the Govt - then at least they will earn more per tonne. Or is this not part of the socialist PTP plan? This was done by the grain growers in other countries, stored the stocks, sold a portion to keep the flow going, then when the market demand crept up, they sold at a higher price. It was orderly, sensible and bypassed the stupidity of the Govt making the top dollar and passing nothing back to the farmers.

It is a good idea and proven to benefit small as well as large scale farmers. But this being Thailand, the large scale farmers are not interested in working with mere peasants. The small farmers cannot do it alone, simple fact, all combined they cannot fund proper storage facilities, so they would still be at the mercy of the rice millers that are robbing them blind now, to store their rice.

[E1717007]

Why don't the rice farmers form a co-op and not sell to the Govt - then at least they will earn more per tonne. Or is this not part of the socialist PTP plan? This was done by the grain growers in other countries, stored the stocks, sold a portion to keep the flow going, then when the market demand crept up, they sold at a higher price. It was orderly, sensible and bypassed the stupidity of the Govt making the top dollar and passing nothing back to the farmers.

simple: middlemen and politicians will not get their "fair" share of the harvest!

[WhizBang]

simple: middlemen and politicians will not get their "fair" share of the harvest!

Ha ha, you beat me too it. That I suspect is the biggest reason the farmers cannot do not form a co-op.

[RubbaJohnny]

More money should be grated. How do you expect the politicians to buy new Condoes and cars?

Grate idea for big cheeses.

As for the means they will use others money as usual for cars as for Condoes are these Condoleeza Rice subsidies in cars?

[scar2]

Why don't the rice farmers form a co-op and not sell to the Govt - then at least they will earn more per tonne. Or is this not part of the socialist PTP plan? This was done by the grain growers in other countries, stored the stocks, sold a portion to keep the flow going, then when the market demand crept up, they sold at a higher price. It was orderly, sensible and bypassed the stupidity of the Govt making the top dollar and passing nothing back to the farmers.

The government is buying to a higher price than the marked will give them, and then the government stores the rice hoping for a higher marked price later.

But so far they have been forced to sell with a loss, that’s why (probably) they are turned down now.

Thailand has now the largest stock of rice ever, and Vietnam and soon Cambodia are passing them as the biggest rice exporters in the world.

The whole rice pledging scheme has turned in to a nightmare for everyone, except the few (or many) officials and self-appointed community leaders that fill their own pockets with the money meant for the farmers.

Edited September 19, 2012 by scar2

[Thai at Heart]

Well cue a huge switch from rice to something else. Chaos reigns.

[dcutman]

I am sure the revised budget that gets submitted gets approved, this is just merely a dog and pony show for the public.

[asiawatcher]

Why don't the rice farmers form a co-op and not sell to the Govt - then at least they will earn more per tonne. Or is this not part of the socialist PTP plan? This was done by the grain growers in other countries, stored the stocks, sold a portion to keep the flow going, then when the market demand crept up, they sold at a higher price. It was orderly, sensible and bypassed the stupidity of the Govt making the top dollar and passing nothing back to the farmers.

It is a good idea and proven to benefit small as well as large scale farmers. But this being Thailand, the large scale farmers are not interested in working with mere peasants. The small farmers cannot do it alone, simple fact, all combined they cannot fund proper storage facilities, so they would still be at the mercy of the rice millers that are robbing them blind now, to store their rice.

Yes interesting a 5kg bag of rice 2 years back was 126 Baht and now over 250 Baht - and the growers got not one baht more. You have to sympathise with them whilst the Govt and middlemen steal from their own kind. Seems the constant scams just make the poor poorer and the rich richer. So much for the Buddhist benevolent attitude towards others.

[Arkady]

Why reject it? Kittirat has promised that the Thai government has the ability to push up global rice prices and sell at a profit no matter how inflated the purchase price or how poor the quality. Or was that another white lie?

[AleG]

Why reject it? Kittirat has promised that the Thai government has the ability to push up global rice prices and sell at a profit no matter how inflated the purchase price or how poor the quality. Or was that another white lie?

Considering that, I think, the Foreign minister quite explicitly told a World Trade Organization panel that Thailand was not trying to manipulate rice prices (something that may lead to sanctions), one or the other had their undergarments aflame.

[caughtintheact]

I've been reading about this subject for the last year but don't really understand it.

Simple explanation:...... anybody?

there is a good explanation at

http://www.ke-rice.com/index.php?lay=show&ac=article&Id=539312990&Ntype=4

[TackyToo]

Why don't the rice farmers form a co-op and not sell to the Govt - then at least they will earn more per tonne. Or is this not part of the socialist PTP plan? This was done by the grain growers in other countries, stored the stocks, sold a portion to keep the flow going, then when the market demand crept up, they sold at a higher price. It was orderly, sensible and bypassed the stupidity of the Govt making the top dollar and passing nothing back to the farmers.

Maybe they like to live to a ripe old age?

[SICHONSTEVE]

I've been reading about this subject for the last year but don't really understand it.

Simple explanation:...... anybody?

Vast amounts of money down the drain or into corrupt officials and big millers bank accounts with no observable benefits to those it is supposed to help!!!! In the process it is bankrupting Thailand, not that that matters!!

[paz]

Yes interesting a 5kg bag of rice 2 years back was 126 Baht and now over 250 Baht - and the growers got not one baht more.

I understand were are you coming from, but I just bough 5Kg of finest quality Jasmine rice for Baht 195.

[Dap]

Beautiful. A wise decision. This bone headed policy was collapsing the rice industry with a Marxist policy. Finally sensibility and common sense is prevailing? How refreshing.

Mike Macarelli

Chaiyaphum, Thailand

Sent from my Samsung SIII

Nah. 405 billion just wasn't enough for them. They've sent it back to be increased.

No doubt you have hit the nail on the head.

[jbrain]

I've been reading about this subject for the last year but don't really understand it.

Simple explanation:...... anybody?

the Phua Thai party found a way to buy votes without getting done for vote buying..Simple enough for you

Oh and because it is soooooo badly mismanaged the actual farmers are not receiving all of the money so hopefully it will back fire on them.

Do you have any links that show that the farmers don't get all their money?

Same as dddave I don't understand what is so bad about if the farmers get a guaranteed price for their crops that is higher than market price.

[Buchholz]

^ here's some article headlines from the thread:

Rice-Pledging: 'Huge Loss' On The Cards

http://www.thaivisa....s-on-the-cards/

Irregularities in state rice pledging scheme reported in Northeast

Agricultural price-pledging policy has failed

Corruption Probe into Rice Pledging Scheme Progressing

Buriram Rice Pledging Under Probe

[buzz]

At a "Foreign Correspondence of Thailand" discussion, late Oct/early Nov 2011, it was predicted that this is exactly what was going to happen ...

Such huge losses will be made, that it won't be long before the Gov't will be asking/telling the farmers NOT to grow too much rice in future, because they won't have the budget to pay for it at such high 'over the market', inflated prices.

The Gov'ts stock-pile will be hard to sell and off-load.

They did run thru the maths to explain & show how these figures worked out.

I have a digital recording of it ... some things that were mentioned and discussed:

- the poorest farmers have about 15 rai

- they could expect to earn approx. 10,000bht per month from 2 crops per year (330/day)

- under the new rice pledging scheme, double that to approx 18,000-20,000bht / mth

- a university graduate earns 10,000-15,000bht/ mth

- only approx. 10% of rice growers farm 15 rai. So, you could say 10% of all rice farmers are poor

- the rest of the total number of rice growers ie: 90%, run larger holdings/farms, many, much larger than 50 rai or more ...

(* I can't remember the breakdown of this 90%, but if anyone on here knows, please let me know)

So, who was always set to benefit most, from this scheme ?

What a joke, and in the end lose Thailand's #1 status that it's held for the last 40 years.

Thats a real pity.

It was brought up also at the meeting, that before Thailand was #1, Burma produced quite large crops at the time - they mentioned, Burma has 3 major rivers, and potentially, was actually better placed than Thailand to produce more rice in the future, as its efficiency increases.