Thaksin Defends Controversial Rice-Pledging Programme

[thaicbr]

Remark from the countryside:

The rice price-pledging programme is successfull in my area. We have a coop with a danish instructed manager.

The farmers connected to the coop have 12000 Baht for middle quality rice and bio-fertilizers free.

The rice-mill is part of the coop.The coop gives instruction (free) for bio-rice. High quality. I eat to stop cholesterol.

Re-tailers from Lampang come to fill their stocks. In Lampang with the mafia of rice-millers they never know the price and the quality of the selled rice.

Small information. Not everything is bad in Thailand

I beg to differ. But the rice pledging is NOT successful. But the CO-OP is.

And that is exactly the sort of thing that should be implemented. Give the farmers the things they need to ensure their survival.

[Pimay1]

Funding woes spell more trouble for Thai rice scheme

Thailand's generous rice subsidy scheme has hit funding problems, marking a new threat to a policy that wins millions of rural votes for the government, but which has generated huge stockpiles, sparked graft allegations, and unnerved markets.

PM Yingluck Shinawatra came into power in 2011 on a promise to pay farmers way above what was then the market rate for their rice, and the intervention has gone on even though it has priced Thai rice out of the international market. The policy has knocked Thailand off its perch as the world's top rice exporter and built up stockpiles of around 17 million tonnes of milled rice, or nearly twice what it exports normally, leaving authorities struggling to find warehouse space, and the threat of rice being dumped on the world market at a loss.

Now officials and bankers say the government has paid less than a sixth of what it owes a state bank funding the intervention programme, piling more pressure on the scheme. "We have informed the government and we expect the cabinet to make a decision to do something very quickly, otherwise there could be a major problem," Bank of Agriculture and Agricultural Cooperatives Vice-President Supat Eauchai told Reuters.

Continued:

http://en-maktoob.ne...--business.html

Reuters - Feb. 7, 2013

The chickens are coming home to roost. Oh what a tangled web we weave, when first we practise to deceive!

This gives my signature statement more credence.

Edited February 7, 2013 by Pimay1

[OzMick]

When this scam collapses with inevitable billion baht losses, you can be sure Tarit and the DSI will ask Abhisit to come in for questioning.

And you can be sure the word will go out in Isaan that it WOULD have been a huge success but for the Democrat's interference.

[Pimay1]

When this scam collapses with inevitable billion baht losses, you can be sure Tarit and the DSI will ask Abhisit to come in for questioning.

And you can be sure the word will go out in Isaan that it WOULD have been a huge success but for the Democrat's interference.

Yep just like the stopping of the school uniform project that everyone up here believes it was the Democrats that did it.

[Ricardo]

<snip for brevity>

Now officials and bankers say the government has paid less than a sixth of what it owes a state bank funding the intervention programme, piling more pressure on the scheme. "We have informed the government and we expect the cabinet to make a decision to do something very quickly, otherwise there could be a major problem," Bank of Agriculture and Agricultural Cooperatives Vice-President Supat Eauchai told Reuters.

Continued:

http://en-maktoob.ne...--business.html

Reuters - Feb. 7, 2013

These funding/cashflow problems will come as no surprise, to TV-readers, who have been following the situation in recent months.

Will the government find the long-overdue funds from somewhere, or will they risk running the BAAC into the ground, a prudent saver would move their funds elsewhere, to avoid any possible risk !

[dcutman]

Thikumporn Nartworathus, deputy director of the

foreign trade department of the Commerce Ministry. He blamed the

delay on checks needed to make sure the money had been spent

properly.

"The repayment was delayed because we needed to waste time

investigating the transparency of the scheme after it was

mentioned in the censure debate in November," Thikumporn said.

Got to love this quote. We could not pay the bank because we have to investigate ourselves for stealing money. Sorry poor farmer the checks in the mail. How is that investigation going by the way?

[Buchholz]

Another telling aspect that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

.

[AleG]

Thikumporn Nartworathus, deputy director of the

foreign trade department of the Commerce Ministry. He blamed the

delay on checks needed to make sure the money had been spent

properly.

"The repayment was delayed because we needed to waste time

investigating the transparency of the scheme after it was

mentioned in the censure debate in November," Thikumporn said.

Got to love this quote. We could not pay the bank because we have to investigate ourselves for stealing money. Sorry poor farmer the checks in the mail. How is that investigation going by the way?

Commerce Minister Boonsong Teriyapirom has said repeatedly

that Thailand had sold 7.3 million tonnes of rice to foreign

governments and that his ministry would gradually repay money

owed to the Bank of Agriculture by the end of 2013.

However, industry officials have said activity at ports did

not suggest large volumes had been shipped, while Indonesia and

the Philippines, named by Boonsong as buyers, denied any deals.

The minister has been vague about export schedules and his

ministry has stopped publishing trade data for rice. It has

refused to say what price it got for the rice.

Obviously "transparency" is a very inconvenient thing for the people running this scheme.

[rubl]

I'm sure gKid will agree with me that governments worldwide always like to pay late (and tell others not to forget what they have to pay and the penalty for paying late)

[bigbamboo]

I'm sure gKid will agree with me that governments worldwide always like to pay late (and tell others not to forget what they have to pay and the penalty for paying late)

I fancy that the g'kid would say that the beloved Miss Yingluck, she who is our real PM, would never allow her government to be so beastly to anyone.

Edited February 7, 2013 by bigbamboo

[Thaddeus]

When this scam collapses with inevitable billion baht losses, you can be sure Tarit and the DSI will ask Abhisit to come in for questioning.

And you can be sure the word will go out in Isaan that it WOULD have been a huge success but for the Democrat's interference.

Yep just like the stopping of the school uniform project that everyone up here believes it was the Democrats that did it.

And don't forget about the 30B health scheme that became 0B under the Dems, only to be turned back to 30B under, well, who? .... it's a little bit in the air about who is actually running the show (circus) isn't it.

A blind man with a yeast infection and terminal Alzheimer's on a galloping horse, would have been able to see through this despite the distractions.

But some still defend it, I wonder why.

[Buchholz]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath.co.th/content/pol/325199

Edited February 8, 2013 by Buchholz

[Buchholz]

In the same vein, the United Nations Food and Agriculture Organisation has issued a warning that Thailand is rapidly running out of storage facilities in which to keep the ever-growing mountains of rice under safe conditions.

The organization pointed out that Thailand which averaged 5.4 million tons of stored rice previously had ballooned and is expected to surge to an unprecedented 18.2 million tons this year.

They highlighted how slow sales because of its high export price and increased production had combined to push storage capacity to its breaking point.

Meanwhile, the World Bank has separately projected the cost of this rice pledging scheme to rise to at least a staggering 440,000,000,000.00 Baht.

.

Edited February 8, 2013 by Buchholz

[OzMick]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath....tent/pol/325199

Spilled the beans about the rice. Mmmmm, aroi mak, I don't think.

The problem now is, who is going to pay premium price when they may well be served up with rotten rice?

[dcutman]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath....tent/pol/325199

"Houston, we have a problem"

I wonder how much rotten rice is worth. I can only assume there is not a huge market for it. I am not even sure one could sell it as animal feed, without spending more money to make it eatable for animals.

[AleG]

...

The problem now is, who is going to pay premium price when they may well be served up with rotten rice?

Not Nigeria.

[Buchholz]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath....tent/pol/325199

"Houston, we have a problem"

I wonder how much rotten rice is worth. I can only assume there is not a huge market for it. I am not even sure one could sell it as animal feed, without spending more money to make it eatable for animals.

"but, but, but... Houston, we DON'T have a problem"

Couldn't help but notice the exaggerated howls of protest emanating from Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut when the government was confronted with the beans being spilled regarding the rotten rice.

from same link above

[Pimay1]

It appears the house built upon the sand is falling apart.

[Pimay1]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath....tent/pol/325199

"Houston, we have a problem"

I wonder how much rotten rice is worth. I can only assume there is not a huge market for it. I am not even sure one could sell it as animal feed, without spending more money to make it eatable for animals.

"but, but, but... Houston, we DON'T have a problem"

Couldn't help but notice the exaggerated howls of protest emanating from Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut when the government was confronted with the beans being spilled regarding the rotten rice.

from same link above

They have to be careful. Everyone knows the past reciprocal action of this loose cannon. Hope all the fire trucks are full of water. Edited February 8, 2013 by Pimay1

[dcutman]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath....tent/pol/325199

"Houston, we have a problem"

I wonder how much rotten rice is worth. I can only assume there is not a huge market for it. I am not even sure one could sell it as animal feed, without spending more money to make it eatable for animals.

"but, but, but... Houston, we DON'T have a problem"

Couldn't help but notice the exaggerated howls of protest emanating from Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut when the government was confronted with the beans being spilled regarding the rotten rice.

from same link above

He was calling MP Warong a liar about where he got the rice. Mr. Warong invited Natthawut to join him with some TV cameras, to the warehouse where he got the rice.

Wifes translation.

Edited February 8, 2013 by dcutman

[Nickymaster]

Another telling aspect from the article that doesn't bode well for this scheme to end its problems anytime soon.

With space running out, Thai rice exporters said last week it was only a matter of time before the government was forced to sell grain from its stocks.

It will almost certainly have to sell at a big loss, which will ultimately be covered by the taxpayer.

Yet another aspect with the gazillion tons of stored rice is the rapidly deteriorating quality which dramatically impacts its saleability.

Today, that was demonstrated in Parliament when Phitsanulok MP Warong Dejkitvikrom cut open a bag of rice that had been brought in from one of the storage warehouses.

It was brown and rotten due to its poor storage conditions.

Thai Rath news

http://www.thairath....tent/pol/325199

"Houston, we have a problem"

I wonder how much rotten rice is worth. I can only assume there is not a huge market for it. I am not even sure one could sell it as animal feed, without spending more money to make it eatable for animals.

"but, but, but... Houston, we DON'T have a problem"

Couldn't help but notice the exaggerated howls of protest emanating from Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut when the government was confronted with the beans being spilled regarding the rotten rice.

from same link above

Thanks for bringing that up.

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is wat Natthawut said.

Edited February 8, 2013 by Nickymaster

[Buchholz]

Thai Rice Reserves Seen at Record as UN Flags Warehouse Shortage

Rice stockpiles in Thailand will surge to a record this year driven by a government-price support program, according to the Food & Agriculture Organization, which said the country may be running out of room to store the staple. Milled holdings may jump 40 percent to 18.2 million metric tons in 2013, the Rome-based United Nations’ agency said in a report yesterday on the global rice market. The reserves, which averaged 5.4 million tons a year between 2008-2010, have increased from 7.8 million tons in 2011, according to the report.

There may be a “looming shortage of storage space,” the agency said. “Government stock-release plans have progressed slowly, further aggravating the supply situation for an export sector that is faced with little offshore demand,” it said. The FAO’s forecast compares with a Jan. 30 estimate from the Thai Rice Exporters Association, which put milled holdings at 17 million tons. Former Thai Prime Minister Thaksin Shinawatra said in September the rice-purchase program should be extended for several more years.

Thai rice shipments plunged 37 percent to 6.73 million tons last year, the Ministry of Commerce said on Jan. 23. That’s the lowest level since 2000, according to data from the U.S. Department of Agriculture, and dethroned Thailand as the world’s biggest exporter.

Continued:

http://www.bloomberg.com/news/2013-02-08/thai-rice-reserves-seen-at-record-as-un-flags-warehouse-shortage.html

Bloomberg - February 8, 2013

.

[Buchholz]

"but, but, but... Houston, we DON'T have a problem"

Couldn't help but notice the exaggerated howls of protest emanating from Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut when the government was confronted with the beans being spilled regarding the rotten rice.

from same link above

He was calling MP Warong a liar about where he got the rice. Mr. Warong invited Natthawut to join him with some TV cameras, to the warehouse where he got the rice.

Wifes translation.

Thanks for bringing that up.

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is what Natthawut said.

Red Shirt Leader Natthawut calling someone else a liar AND a thief.

Who said it wasn't a good idea to put Red Shirts into Parliament?

The laugh factor increased exponentially when they did that.

.

[Pimay1]

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is wat Natthawut said.

I think his name needs to be changed to Nuttawut.

[Buchholz]

...

The problem now is, who is going to pay premium price when they may well be served up with rotten rice?

Not Nigeria.

ewwwww.... 15 year old rice.

Will that improve dramatically anytime soon in the context of having the amount of rice in storage being nearly three times the total amount sold last year.

Milled holdings may jump 40 percent to 18.2 million metric tons in 2013, the Rome-based United Nations’ agency said in a report

Thai rice shipments plunged 37 percent to 6.73 million tons last year

Edited February 8, 2013 by Buchholz

[Buchholz]

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is what Natthawut said.

I think his name needs to be changed to Nuttawut.

Done.

Even the Red Shirt websites use that:

Nuttawut speech of May 28

http://illinoisredsh...-of-may-28.html

.

Edited February 8, 2013 by Buchholz

[Thai at Heart]

Thanks for bringing that up.

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is wat Natthawut said.

Nattatwut is probably in the know, there probably shouldn't be any rice in that warehouse, because despite being paid for, it never existed. LOL. The odds that they don't lose 20 to 30% of this rice over a one year period is very very slim. Moisture will migrate through the stacks of rice just like a sponge, as humidity rises and falls in the building.There is virtually no chance for the sacks at the bottom or the middle of the stack to breathe, so, inevitably, it at best changes quality, or at worst goes off. Of course you could rotate the stack, but who the hell is going to rotate 10mn tonnes of product in 50 kg sacks? In an ideal world, a huge proportion of this stuff would have been long gone. Alas, it is only going to get worse once the rainy season starts.

[Mosha]

Thanks for bringing that up.

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is wat Natthawut said.

Nattatwut is probably in the know, there probably shouldn't be any rice in that warehouse, because despite being paid for, it never existed. LOL. The odds that they don't lose 20 to 30% of this rice over a one year period is very very slim. Moisture will migrate through the stacks of rice just like a sponge, as humidity rises and falls in the building.There is virtually no chance for the sacks at the bottom or the middle of the stack to breathe, so, inevitably, it at best changes quality, or at worst goes off. Of course you could rotate the stack, but who the hell is going to rotate 10mn tonnes of product in 50 kg sacks? In an ideal world, a huge proportion of this stuff would have been long gone. Alas, it is only going to get worse once the rainy season starts.

Who in their right mind would want to steal a sack of inedible food? The song from Evita "The money kept rolling in." suddenly came to mind.

[dcutman]

Thanks for bringing that up.

Deputy Commerce Minister and Red Shirt Leader Out On Bail Natthawut yesterday also said that he would report MEMBER of PARLIAMENT Warong Dejkitvikrom to the Police because he had stolen a bag of rice. According to Natthawut, MEMBER of PARLIAMENT!!! Warong Dejkitvikrom was NOT allowed to enter the storage facilities.

I am not joking. This is wat Natthawut said.

Nattatwut is probably in the know, there probably shouldn't be any rice in that warehouse, because despite being paid for, it never existed. LOL. The odds that they don't lose 20 to 30% of this rice over a one year period is very very slim. Moisture will migrate through the stacks of rice just like a sponge, as humidity rises and falls in the building.There is virtually no chance for the sacks at the bottom or the middle of the stack to breathe, so, inevitably, it at best changes quality, or at worst goes off. Of course you could rotate the stack, but who the hell is going to rotate 10mn tonnes of product in 50 kg sacks? In an ideal world, a huge proportion of this stuff would have been long gone. Alas, it is only going to get worse once the rainy season starts.

Who in their right mind would want to steal a sack of inedible food? The song from Evita "The money kept rolling in." suddenly came to mind.

Who in there right mind would buy rice for 40% over market price and let it rot in a warehouse? Forest Gump "Stupid is as stupid does" Edited February 8, 2013 by dcutman

[IMA_FARANG]

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

---------------------------

When I first saw that statement i thought you were joking .... but the more I think about it's just the kind of "logic" the current govrnment wou;d try to pass off to a gulible public.

Like the terms, "valure added tax" or "negative cash income flow".

How Thaksin can say a program that buys rice at a high price and sells it at a lower price can "generate imcome" for Thailand I have yet to understand.

Perhaps I just know economics well enough?

Especially if that program DOESN'T buy rice from the farmers but from the MIDDLEMEN (who are free to pay any price they wish to the farmers and then are paid a gaurenteed higher than market price by the government).

Maybe that's a example of Thaksin-omics in action.?