Thai Cabinet Rejects New Bt405 Billion Rice Pledging Scheme

[belg]

it is always easy to play with other people's money, it is called socialism...

what does all this extra money bring to the thai economy except debts ?

just to make some shallow and fake promises to the hurdes that votes them into power?

and it is merly the rice miller and not the famer, gaining wealth

[bumpkin]

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

Simple explanation:...... anybody?

There is no simple explanation. It's Thai politics.

Many countries offer support for food production in some way or another. And these rural subsidies are a source of corruption in many countries, too. Thailand is not unique. e.g. the CAP in EC

[Thai at Heart]

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

Simple explanation:...... anybody?

There is no simple explanation. It's Thai politics.

Many countries offer support for food production in some way or another. And these rural subsidies are a source of corruption in many countries, too. Thailand is not unique. e.g. the CAP in EC

Having worked in a business dealing with the CAP (in one of the most corrupt EU markets) and also in the Thai market, the CAP was riven with corruption, with smuggling, overstatement of planted area, but the system to make sure that the farmers received the subsidy themselves was at least in my part of the industry, water tight. If they didn't receive it, there would have been riots. They had a contract with my company, delivered their product, had the weight and quality officially recorded, and were paid by us the "market" price and then directly by the government according to this record of weight. Quotas were however strictly enforced, and excess product wasn't eligible for subsidy. This had an interesting effect in that, farmers discarded their lowest quality product to make sure that they received the highest grade quality. Contracts were on a yearly basis and any farmer was free to move the next year if he felt that he didn't receive a fair deal. Strict quotas meant that there was always excess demand for the product, unlike say butter which generated mountains. The market in which I worked was always "over subscribed" and companies had to work hard to keep their farmers content. Geography and volumes involved were however far smaller than the Thai rice market however. There was a long lived co-operative exporter that was the 2nd largest player in the market, and this did help massively to keep the buying industry honest.

This is what I find hard to understand here. If the farmers themselves weren't receiving at least some portion of the subsidised price, why aren't there hundreds of thousands of them marching to Bangkok. That isn't to say that they could be so completely subservient to the current party that they are completely willing to get screwed, but I haven't met farmers in too many parts of the world that are that lilly livered. Of course, they can get screwed on moisture content, quality content but it isn't unheard of for a farmer to refuse to sell his product if he thinks the measurements are unfair.

All in all, why there are no reports or surveys about farmers earnings coming out of the excise department yet is a little curious. These are a yearly event in the industry in which I worked in Thailand. I can't help thinking that the absolute best thing is to let foreign companies buy directly in the market. They would become the "honest" brokers in the market, since they would attract all the flack if they were seen to be screwing anyone, and would keep the whole market more honest in terms of contracts, payments and reporting. Keeping them out, just allows the status quo to stay as is, which in terms of farmer payments and volumes still virtually shrouded in secrecy.

Edited September 20, 2012 by Thai at Heart

[Narratio]

So, if I understand this correctly, the Thai government has a year or two's rice supply in storage at mills and silos across the country (which they haev to pay storage costs on) and yet it's buying kilotons of rice from rice farmers at 25% above market price? And probably borrowing money on the international money market to do it?

Okay. It's not the silliest thing I've ever heard but it's got to be in the top ten. I assume they got the idea from the EC's Common Agricultural Policy?

[ableguy]

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

Simple explanation:...... anybody?

Graft

[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?

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.

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.

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

Great call!

That's exactly what happened.

Govt stands by rice scheme despite doubts

The Cabinet on Tuesday endorsed in principle a second round of the government's rice price-pledging scheme for the upcoming harvest season that would require as much as Bt450 billion.

http://www.nationmul...s-30190757.html

The Nation - Sept. 20, 2012

.

Edited September 20, 2012 by Buchholz

[ableguy]

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

Simple explanation:...... anybody?

There is no simple explanation. It's Thai politics.

Many countries offer support for food production in some way or another. And these rural subsidies are a source of corruption in many countries, too. Thailand is not unique. e.g. the CAP in EC

Having worked in a business dealing with the CAP (in one of the most corrupt EU markets) and also in the Thai market, the CAP was riven with corruption, with smuggling, overstatement of planted area, but the system to make sure that the farmers received the subsidy themselves was at least in my part of the industry, water tight. If they didn't receive it, there would have been riots. They had a contract with my company, delivered their product, had the weight and quality officially recorded, and were paid by us the "market" price and then directly by the government according to this record of weight. Quotas were however strictly enforced, and excess product wasn't eligible for subsidy. This had an interesting effect in that, farmers discarded their lowest quality product to make sure that they received the highest grade quality. Contracts were on a yearly basis and any farmer was free to move the next year if he felt that he didn't receive a fair deal. Strict quotas meant that there was always excess demand for the product, unlike say butter which generated mountains. The market in which I worked was always "over subscribed" and companies had to work hard to keep their farmers content. Geography and volumes involved were however far smaller than the Thai rice market however. There was a long lived co-operative exporter that was the 2nd largest player in the market, and this did help massively to keep the buying industry honest.

This is what I find hard to understand here. If the farmers themselves weren't receiving at least some portion of the subsidised price, why aren't there hundreds of thousands of them marching to Bangkok. That isn't to say that they could be so completely subservient to the current party that they are completely willing to get screwed, but I haven't met farmers in too many parts of the world that are that lilly livered. Of course, they can get screwed on moisture content, quality content but it isn't unheard of for a farmer to refuse to sell his product if he thinks the measurements are unfair.

All in all, why there are no reports or surveys about farmers earnings coming out of the excise department yet is a little curious. These are a yearly event in the industry in which I worked in Thailand. I can't help thinking that the absolute best thing is to let foreign companies buy directly in the market. They would become the "honest" brokers in the market, since they would attract all the flack if they were seen to be screwing anyone, and would keep the whole market more honest in terms of contracts, payments and reporting. Keeping them out, just allows the status quo to stay as is, which in terms of farmer payments and volumes still virtually shrouded in secrecy.

Many of the farmers are selling to the millers at below the government pledged price as they need the cash fast to pay debt and they help the millers in this corruption. Many millers submit bills for rice they never bought , there was a case last week where a miller was found to have been paid 200 million baht for no rice at all just submitting false papers. nothing will come of this corruption as the guys who get the most money from it are you guess.

[Thai at Heart]

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

Simple explanation:...... anybody?

There is no simple explanation. It's Thai politics.

Many countries offer support for food production in some way or another. And these rural subsidies are a source of corruption in many countries, too. Thailand is not unique. e.g. the CAP in EC

Having worked in a business dealing with the CAP (in one of the most corrupt EU markets) and also in the Thai market, the CAP was riven with corruption, with smuggling, overstatement of planted area, but the system to make sure that the farmers received the subsidy themselves was at least in my part of the industry, water tight. If they didn't receive it, there would have been riots. They had a contract with my company, delivered their product, had the weight and quality officially recorded, and were paid by us the "market" price and then directly by the government according to this record of weight. Quotas were however strictly enforced, and excess product wasn't eligible for subsidy. This had an interesting effect in that, farmers discarded their lowest quality product to make sure that they received the highest grade quality. Contracts were on a yearly basis and any farmer was free to move the next year if he felt that he didn't receive a fair deal. Strict quotas meant that there was always excess demand for the product, unlike say butter which generated mountains. The market in which I worked was always "over subscribed" and companies had to work hard to keep their farmers content. Geography and volumes involved were however far smaller than the Thai rice market however. There was a long lived co-operative exporter that was the 2nd largest player in the market, and this did help massively to keep the buying industry honest.

This is what I find hard to understand here. If the farmers themselves weren't receiving at least some portion of the subsidised price, why aren't there hundreds of thousands of them marching to Bangkok. That isn't to say that they could be so completely subservient to the current party that they are completely willing to get screwed, but I haven't met farmers in too many parts of the world that are that lilly livered. Of course, they can get screwed on moisture content, quality content but it isn't unheard of for a farmer to refuse to sell his product if he thinks the measurements are unfair.

All in all, why there are no reports or surveys about farmers earnings coming out of the excise department yet is a little curious. These are a yearly event in the industry in which I worked in Thailand. I can't help thinking that the absolute best thing is to let foreign companies buy directly in the market. They would become the "honest" brokers in the market, since they would attract all the flack if they were seen to be screwing anyone, and would keep the whole market more honest in terms of contracts, payments and reporting. Keeping them out, just allows the status quo to stay as is, which in terms of farmer payments and volumes still virtually shrouded in secrecy.

Many of the farmers are selling to the millers at below the government pledged price as they need the cash fast to pay debt and they help the millers in this corruption. Many millers submit bills for rice they never bought , there was a case last week where a miller was found to have been paid 200 million baht for no rice at all just submitting false papers. nothing will come of this corruption as the guys who get the most money from it are you guess.

How much below the pledde price is the issue?

[indyuk]

Your 'web bot' just struck my response in midst draft.That my friends is ignorant and insulting. u let me finish the article you would have seen it fair and balanced in the context of free speech that I believed Thai-Visa to respect. As European socialist I have had strong feelings about the Thai dream for 20 years. I am not a red shirt of yellow shirt. I am not politically active. Oh the Thai Dream, Fair government, Free Press, equally shared between Left,, Center and Right Publications and no Censorship. If you can spin against a Government that is doing quite well you will occasionally get a response. Now I guess you will delete this rant, but hopefully after repenting the deletion before my response was finished.

[AleG]

Your 'web bot' just struck my response in midst draft.That my friends is ignorant and insulting. u let me finish the article you would have seen it fair and balanced in the context of free speech that I believed Thai-Visa to respect. As European socialist I have had strong feelings about the Thai dream for 20 years. I am not a red shirt of yellow shirt. I am not politically active. Oh the Thai Dream, Fair government, Free Press, equally shared between Left,, Center and Right Publications and no Censorship. If you can spin against a Government that is doing quite well you will occasionally get a response. Now I guess you will delete this rant, but hopefully after repenting the deletion before my response was finished.

If that's the Red Shirt dream they should stop voting and supporting Thaksin and his cronies, because they are the antithesis of what you say.

They should also stop admiring Hun Sen and the Cambodian model for that matter.

[Buchholz]

PM Yingluck: Rice-Pledging Project truly aimed at boosting farmers’ income

BANGKOK, 21 September 2012 (NNT) – The Prime Minister has assured that the state-initiated rice-pledging project is truly aimed at helping farmers earn sufficient income for living.

Prime Minister Yingluck Shinawatra, on Thursday, stated that the government’s rice-pledging project has been initiated to help farmers, who are the majority of the Thai population.

PM Yingluck said that the project must continue on, as promised to the Parliament.

However, she conceded that the government has not been able to satisfy everyone during its first year in office but is still willing to heed all advices, with the Commerce Ministry already urged to improve and streamline the project.

The Premier added that the price set for the pledged rice has never been decided to boost farmers’ revenues at the expense of the private sector.

-- NNT 2012-09-21