Rice scheme 'good for a few years'

THE NATION

Thaksin defends controversial programme

BANGKOK: -- Former PM Thaksin Shinawatra voiced support yesterday for the government’s controversial rice price-pledging programme, saying it should be extended for several more years.

He rebuffed critics who say the policy has increased public debt, encouraged corruption, distorted the market and eroded Thailand's position as a leading rice exporter.

Observers saw the comments as the fugitive ex-leader's latest bid to influence Thai government policies from overseas.

Prime Minister Yingluck Shinawatra implemented the price-support policy to boost incomes of farming families whose support helped Pheu Thai Party win the election last year. The programme, under which the government buys rice from farmers at well above market rates, reaps economic gains that are about three times the programme's cost, Thaksin claimed in an interview in Singapore.

"If we manipulate the mechanism for two years, three years, then things will be moving naturally," Thaksin said. "The rice price in the world market is increasing.

"We do not just throw away the money," Thaksin said. "The programme will lead to higher government revenue through the sale of stockpiled grain, increased local consumption and will help cushion Thailand from the effects of the European debt crisis," he said.

Despite increasing corruption complaints over the programme, Prime Minister Yingluck will chair a National Rice Policy Committee to consider new lending totalling Bt405 billion to back the over-the-market subsidy scheme in the 2012/2013 harvest season.

Commerce Permanent Secretary Yanyong Phuangrach said yesterday Yingluck had ordered the committee meeting, which she will chair after returning from the US.

The Office of Agricultural Economics (OAE) yesterday said total rice production under the state rice pledging scheme would reach 50 million tonnes of paddy, including pending stockpiles in government warehouses.

OAE secretary-general Apichart Chongsakul, said main crop production had reached 25 million tonnes, a slight drop from its previous projection of 26 million tonnes. A second crop accounted for 11 million tonnes. As a result, paddy rice entering the market next year would reach 35-36 million tonnes.

However, the figure is different from a Commerce Ministry report released last Friday, which said total production would reach 34 million tonnes for the main crop and 13.3 million tonnes for the second crop next year.

Apichart said the different figures derived from overlapped production of the second crop. To solve the problem, the government had changed its criteria for the rice pledging scheme by reducing it to only two times a year, by limiting more of the out-of-season harvest (which meant the second crop would be pledged only once).

The office also warned that the government's huge stockpile of 16-17 million tonnes of paddy should be released soon, or total rice production would reach 50 million tonnes.

The government has spent Bt282.5 billion since October buying about 18 million metric tonnes of unmilled rice from 2.45 million farmers at above-market rates, according to the Ministry of Commerce. Spending may increase by a further Bt405 billion in the fiscal year starting October 1, as the government wants to buy as much as 34 million tonnes, Commerce Minister Boonsong Teriyapirom said last Friday.

"This may help consumer spending to remain well-supported and expansionary fiscal policy may add momentum to growth," said Enrico Tanuwidjaja, an economist at the Royal Bank of Scotland in Singapore. Thailand's fiscal deficit may expand to more than 2 per cent of gross domestic product next fiscal year, from 1 per cent, because of the rice scheme, he said.

State purchases will boost stockpiles of milled rice from the annual harvest that starts next month to a record of 12.1 million tonnes and may reduce Thailand's exports this year by 39 per cent to 6.5 million tonnes, less than India and Vietnam, according to the US Department of Agriculture.

Thaksin said the government had 17 million tonnes of paddy on hand, and stockpiles of milled rice were estimated at 4 million tonnes. Sales to Indonesia, Iraq and Ivory Coast, as well as other countries in the Middle East and Africa, would keep reserves down, he said.

"I don't think we have much because we keep selling," he said, referring to the stockpile next year.

Thailand's October harvest accounts for about 70 per cent of total output, and a secondary crop is harvested through to July. The United Nations' Food and Agriculture Organisation said in August Thailand should be able to retain its position as the world's top exporter, shipping 7 million tonnes this year.

Shipments at that level would mean that Thailand was still number one, but with a better price, Thaksin said. "If we were to push our selling to compete with India when they started dumping rice …. we'll probably end up at $400 per tonne. Now it's $602. We will be doing OK."

The government is targeting exports of 8.5 million tonnes this year, boosted by sales to China, Bangladesh and Indonesia. Sales tumbled 45 per cent to 4.75 million tonnes for the year to September 18, according to the Thai Rice Exporters Association.

Thaksin said the previous government spoiled exporters by selling them cheap rice and called on them to get better at marketing. About 40 per cent of Thailand's 67 million people who depend on rice farming were satisfied with the policy, he said.

Total losses from the scheme are estimated at about Bt60 billion a year, based on a purchase cost of about $660 a tonne, Thaksin said. "We don't lose that much," he said.

The cost could rise to Bt200 billion after accounting for losses and storage fees for the grain, Kiat Sittheeamorn, an opposition parliamentarian, said last month.

An income-support programme implemented by the previous government, headed by now-opposition leader Abhisit Vejjajiva, provided about Bt67 billion in direct payments to 4 million rice farmers in the 2010-2011 production year, according to the state-run Bank for Agriculture and Agricultural Cooperatives.

A poll by the University of the Thai Chamber of Commerce in July found 86 per cent of 1,200 farmers surveyed said price-support moves were needed because of high production costs and low prices.

"Please sympathise with them," Thaksin said of the farmers. "They are poor. Let them have a chance to survive in this world, to live a better life."

-- The Nation 2012-09-25

Good thing he quit politics. Now he is big into rice

Money laundering. He's good at that.

Before my topic was closed (which was opened 40 minutes before The Nation published their article), it showed the full story - not only that Thaksin defended the rice pledging programme, but that he denied wrongdoing in his crimes which he has been charged and sentenced for. He stated the charges were politically motivated.

He also stated that he felt he should be allowed back into Thai poltiics, and should not be made to serve time for his crimes, as he had done nothing wrong.

This article produced by the nation has been manipulated and the quotations from the original interview have been chosen specifically to be pro-government PTP. Interesting how censorship and propaganda is being used in the country currently, with the government understanding that only a small percentage of the country can speak english and have access to neutral media outlets.

Edited September 25, 201213 yr by TheGhostWithin

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

Thaksin is full of horse pucky...Anthything that interferes with world wide markets, rice included, can only be harmful. To buy rice from farmers and prices higher than the market so how little they understand and know how the markets work. It is in fact price that moves all markets; prices by itself and price alone is the only real indicator there is. Even when hedgfunds and other institution try and move the trillions of dollars in currency markets an opposite correction takes place.

How little they know of basic supply and demand economics

Edited September 25, 201213 yr by jerrysteve

When is he coming back to face the music? Then when he will be clean, maybe his input in Thai politic can be taken into account.

Until then, his advices and comments should be taken as toilet paper!!

GeorgeO...I must admit this is the first time in my lifetime that I have witnessed a convicted criminal manipulating the market.

It is perplexing.

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

It doesn't stop there.

Additional direction of the current government by the convicted fugitive....

Exiled Thai Leader Thaksin Signals Sister to Avert Political Crisis

Former Thai Premier Thaksin Shinawatra said his sister’s government will avoid conflicts like those that led to his ouster in a 2006 coup, even as it presses ahead with efforts to curb the power of the courts. Prime Minister Yingluck Shinawatra’s ruling Pheu Thai Party will probably drop plans to completely rewrite the constitution and amend it section-by-section instead to sidestep challenges that caused previous governments to fall, Thaksin said in an interview in Singapore yesterday.

It will also shelve a bill granting a broad amnesty that would include him until the “the timing is right,” he said. “If we cannot amend the constitution that we have now, it’s difficult,” said Thaksin, who has lived overseas since fleeing a 2008 jail sentence.

Thaksin, 63, said he visited Singapore to watch a Formula One race as a guest of Temasek Holdings Pte, which bought the telecommunications firm he founded in 2006. He said he’s in no hurry to return to his native land, having grown accustomed to a life where he flies every three days on average

Continued:

http://www.businessw...-southeast-asia

Business Week - Sept. 24, 2012

.

Edited September 25, 201213 yr by Buchholz

Next they will start paying farmers to not grow rice so they can save on storage costs and spoilage.

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

It doesn't stop there.

Additional direction of the current government by the convicted fugitive....

Exiled Thai Leader Thaksin Signals Sister to Avert Political Crisis

Former Thai Premier Thaksin Shinawatra said his sister’s government will avoid conflicts like those that led to his ouster in a 2006 coup, even as it presses ahead with efforts to curb the power of the courts. Prime Minister Yingluck Shinawatra’s ruling Pheu Thai Party will probably drop plans to completely rewrite the constitution and amend it section-by-section instead to sidestep challenges that caused previous governments to fall, Thaksin said in an interview in Singapore yesterday.

It will also shelve a bill granting a broad amnesty that would include him until the “the timing is right,” he said. “If we cannot amend the constitution that we have now, it’s difficult,” said Thaksin, who has lived overseas since fleeing a 2008 jail sentence.

Thaksin, 63, said he visited Singapore to watch a Formula One race as a guest of Temasek Holdings Pte, which bought the telecommunications firm he founded in 2006. He said he’s in no hurry to return to his native land, having grown accustomed to a life where he flies every three days on average

Continued:

http://www.businessw...-southeast-asia

Business Week - Sept. 24, 2012

.

I like this statement in the news article.

"Two weeks after his cash was seized, the Thaksin-backed Red Shirts began protests that shut down Bangkok’s commercial center and led to a crackdown that left more than 90 people dead".

Thaksin is full of horse pucky...Anthything that interferes with world wide markets, rice included, can only be harmful. To buy rice from farmers and prices higher than the market so how little they understand and know how the markets work. It is in fact price that moves all markets; prices by itself and price alone is the only real indicator there is. Even when hedgfunds and other institution try and move the trillions of dollars in currency markets an opposite correction takes place.

How little they know of basic supply and demand economics

There's no need to.

They have Thaksinomics

http://en.wikipedia....ki/Thaksinomics

boost the economy with huge Mega Projects just like his previous tenure

Trains - 2.2 Trillion Baht

Flood projects - Half a Trillion Baht

etc.

etc.

etc.

It's a "can't lose" situation for the country.

.

Edited September 25, 201213 yr by Buchholz

When is he coming back to face the music? Then when he will be clean, maybe his input in Thai politic can be taken into account.

Until then, his advices and comments should be taken as toilet paper!!

He's in no hurry to come back. He's living the good life.

Thaksin, 63, said he visited Singapore to watch a Formula One race as a guest of Temasek Holdings Pte, which bought the telecommunications firm he founded in 2006. He said he’s in no hurry to return to his native land, having grown accustomed to a life where he flies every three days on average

and especially not until the "timing is right" that he no longer needs to "face the music".

It will also shelve a bill granting a broad amnesty that would include him until the “the timing is right,” he said. “If we cannot amend the constitution that we have now, it’s difficult,” said Thaksin

...since his ill-earned bucks still rule....

...no scruples, no conscience, no compunction.....

....his 'stomping grounds'.....

...the problem is: he is the epitome of what Thai society is......

Next they will start paying farmers to not grow rice so they can save on storage costs and spoilage.

Why ever not - The EU and USA have been doing likewise for years.

Good thing he quit politics. Now he is big into rice

Opportunity for his friend to make money. Payback time

Since when does a fugitive from justice get to have input on government policy...??

When your running a goverment by proxy ?...

"We do not just throw away the money," Thaksin said. "The programme will lead to higher government revenue through the sale of stockpiled grain, increased local consumption and will help cushion Thailand from the effects of the European debt crisis," he said.

...

Total losses from the scheme are estimated at about Bt60 billion a year, based on a purchase cost of about $660 a tonne, Thaksin said. "We don't lose that much," he said.

Lie, lie and lie some more. The amazing thing is how many people admire a pathological liar like Thaksin

"We do not just throw away the money," Thaksin said. "The programme will lead to higher government revenue through the sale of stockpiled grain, increased local consumption and will help cushion Thailand from the effects of the European debt crisis," he said.

...

Total losses from the scheme are estimated at about Bt60 billion a year, based on a purchase cost of about $660 a tonne, Thaksin said. "We don't lose that much," he said.

Lie, lie and lie some more. The amazing thing is how many people admire a pathological liar like Thaksin

Interesting non have shown up to defend Big T

The rice pledging program is probably a very important source of income for Thaksin, if not the most important.

Without the voters Thaksin's future is basically non-existing. Expect populism to increase.

At the end we will have a bankrupt country and Thaksin still being a coward from abroad. How far would a "decent" person go? Correct, very far.

Edited September 25, 201213 yr by Nickymaster

The PM is in Thailand (if not shopping in Paris) and her mouthpiece is abroad.

Edited September 25, 201213 yr by Nickymaster

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

Exactly - this morning there was the comment Yingluck and Thaksin have to decide... so why now in the same day - another article stating Thaksins opinions and decisions? Has The Nation gone mad and the Bangkok Post ditto? Or has Thailand suddenly done a backflip and admitted Thaksin is their surrogate PM? If the PM is incapable of making decisions from within her parliament, then she should resign immediately or be impeached.

The PM is in Thailand (if not shopping in Paris) and her mouthpiece is abroad.

I thought the PM was a broad and her mouth piece is in Dubai, oh well.

He rebuffed critics who say the policy has increased public debt, encouraged corruption, distorted the market and eroded Thailand's position as a leading rice exporter.

He rebuffed critics, I can hear it now, How can it be wrong if it encourages corruption? 80% of Thais think corruption is great!

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

Since PTP won the last election, wasn't it?

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

Since PTP won the last election, wasn't it?

Because the political system here is broken, and attacking long term, big problems is discouraged and appearing to tackle them is encouraged, in a word, yes. Thaksin says, PTP does.

Until laws are used to prevent fugitives from influencing politics in Thailand, and proof is obtained and used to show that both financial (at times of elections and unrest) and personal influence are used to sway decisions in the development and day to day running of the country by the political establishment, criminals (not just Thaksin Shinawatra) will continue to commit crimes in the name of an increasing sphere of power and wealth, whilst on the other hand use the political establishment to protect their interests and silence their enemies and competition.

What does this have to do with him? Since when does a fugitive from justice get to have input on government policy...??

Since PTP won the last election, wasn't it?

Because the political system here is broken, and attacking long term, big problems is discouraged and appearing to tackle them is encouraged, in a word, yes. Thaksin says, PTP does.

Until laws are used to prevent fugitives from influencing politics in Thailand, and proof is obtained and used to show that both financial (at times of elections and unrest) and personal influence are used to sway decisions in the development and day to day running of the country by the political establishment, criminals (not just Thaksin Shinawatra) will continue to commit crimes in the name of an increasing sphere of power and wealth, whilst on the other hand use the political establishment to protect their interests and silence their enemies and competition.

Well I would add, that believing that having a bunch of guys in camouflage for a government, because they really are the one's who serve selflessly and would never do anything in their own interest over that of the country, is another issue that I think the country has to solve also.

Predictable Thaksin. Lie, bullshit & cry a few crocodile tears for the farmers.

The current Commerce Minister won't come clean about Government-to-government rice sales because either they don't exist or they show how much of a loss Thailand in having to suffer with their (Thaksin's) corruption-riddled rice policy.

"We do not just throw away the money," Thaksin said. "The programme will lead to higher government revenue through the sale of stockpiled grain, increased local consumption and will help cushion Thailand from the effects of the European debt crisis," he said.

...

Total losses from the scheme are estimated at about Bt60 billion a year, based on a purchase cost of about $660 a tonne, Thaksin said. "We don't lose that much," he said.

Lie, lie and lie some more. The amazing thing is how many people admire a pathological liar like Thaksin

Interesting non have shown up to defend Big T

Well - In defence for the troll from the desert ..... ..... ....... sorry, can't think of anything