Thai Government To Pledge Rice From Second Crop

[webfact]

Thai government to pledge rice from second crop

BANGKOK, Oct 16 – The Thai cabinet approved an additional Bt20.85 billion budget to pledge more rice from this year’s second crop, compelling the rice pledging scheme to totally incorporate 14.7 million tonnes of rice in the 2012/2013 harvest, according to government spokeswoman Sansaee Nakpong.

She said the government originally agreed to take 13.31 million tonnes of rice into the scheme, but has added 1.39 million tonnes. Budget for the purpose will be from the Bt90 billion investment fund of the Bank of Agriculture and Agricultural Cooperatives (BAAC).

The commerce ministry was instructed to speed up selling rice in its stocks so as to urgently pay back to the BAAC as the bank will need funds for the new round of rice pledging.

The cabinet was also informed that 652 rice mills had served as rice pledging locations for a total of 14.526 million tonnes of rice from March 1 to Oct 3 this year.

Deputy prime minister Chalerm Yubumrung said he had ordered the Marketing Organisation for Farmers and Public Warehouse Organisation (PWO) to allow police and the media to check warehouses for transparency in the rice pledging scheme. He is chairman of the commission on corruption prevention in the rice pledging scheme.

Commerce permanent secretary Vatcharee Vimuktayon said corruption was not that easy given the stringent inspection measures, starting from pre-farming which must be inspected and certified by representatives from farmers, local cooperatives, BAAC, tambon and village chiefs, and PWO.

The certified information must be submitted to the commerce ministry’s data centre which compiles the rice pledging volumes on a daily basis, she explained.

Referring to alleged smuggling of paddy from neighbouring countries to be sold under the pledging scheme, police commanders in border districts such as Amnart Charoen in Sa Kaeo province totally ruled out such action, insisting that border checkpoints have been strictly monitored.

However, border patrol police commander Pol Lt Gen Surapong Kemasingki said police had seized 55 tonnes of rice and 90 tonnes of paddy smuggled into Thailand so far this year.

The largest seizure was in Sa Kaeo province, followed by Mukdaharn and Ubon Ratchathani provinces, he said. (MCOT online news)

-- TNA 2012-10-16

[Thai at Heart]

And it all starts to unravel

[siampolee]

that old piggy bank is a getting bigger those old pockets in the politicians trousers or handbags for the ladies must be pretty deep and pretty big. Yea my insides runneth over with filthy lucre..

Edited October 16, 2012 by siampolee

[Pimay1]

"Commerce permanent secretary Vatcharee Vimuktayon said corruption was not that easy given the stringent inspection measures".

Wasn't someone just transfered out of his job for finding massive corruption and given a "promotion" before he could spill the beans? These people never cease to amaze me. They think the Thai populace will believe anything they say no matter how ridiculous, ludicrous, laughable and absurd it is. And maybe they are right.

[Soi Sauce]

"Commerce permanent secretary Vatcharee Vimuktayon said corruption was not that easy given the stringent inspection measures".

Wasn't someone just transfered out of his job for finding massive corruption and given a "promotion" before he could spill the beans? These people never cease to amaze me. They think the Thai populace will believe anything they say no matter how ridiculous, ludicrous, laughable and absurd it is. And maybe they are right.

They are right. The only people they don't believe are those with more knowledge who tell the truth.

Nobody cannot believe a Thai politico. That's Section 2 of the Constitution, I think.

[cloudhopper]

"The commerce ministry was instructed to speed up selling rice in its stocks so as to urgently pay back to the BAAC as the bank will need funds for the new round of rice pledging."

It's going to be interesting to see how long they can keep this up before it all goes Thelma and Louise...

[Soi Sauce]

So what's gonna happen is this;

After pocketing loads of cash from the scheme, as the rice nears its sell-by date those who took the pledging money will buy it up cheap then sell it on the global market at a rate below the World rates, thereby making another killing.

This will then depress the price of rice due to over-supply, and the Thai farmers will lose out again when the politicos, having made/stolen billions, stop the scheme saying the gov can no longer afford it.

Not difficult to work out. Wouldn't be surprised if this was followed by a land grab from the poor farmers who naively believed they would benefit from this plan.

The sooner the populace realize that this gov doesn't do anything unless it makes its members richer, at everybody else's cost, the better.

Edited October 16, 2012 by Soi Sauce

[rubl]

[quot]She said the government originally agreed to take 13.31 million tonnes of rice into the scheme, but has added 1.39 million tonnes. Budget for the purpose will be from the Bt90 billion investment fund of the Bank of Agriculture and Agricultural Cooperatives (BAAC).[/quot]

The government paid the BAAC THB 30 billion last year and the BAAC complained the government was still in arrears to the sum of 100 billion. Recently 90 billion was paid (or only pledged). So now borrowing 20 billion from the BAAC again is 'sound government practice'?

Mind you, state bank BAAC finances the government's rice-pledging scheme. The bank has borrowed Bt269 billion to finance the pledging policy for the 2012-13 harvest season, which started this month.

Isn't big budget economic fun, especially when there are so many different amounts mentioned which seemingly conflict :-)

[rubl]

So what's gonna happen is this;

After pocketing loads of cash from the scheme, as the rice nears its sell-by date those who took the pledging money will buy it up cheap then sell it on the global market at a rate below the World rates, thereby making another killing.

This will then depress the price of rice due to over-supply, and the Thai farmers will lose out again when the politicos, having made/stolen billions, stop the scheme saying the gov can no longer afford it.

Not difficult to work out. Wouldn't be surprised if this was followed by a land grab from the poor farmers who naively believed they would benefit from this plan.

The sooner the populace realize that this gov doesn't do anything unless it makes its members richer, at everybody else's cost, the better.

Not sure about Thailand, but in other countries it would be a different government trying to clean up the mess left by the previous one and being blamed for austerity measures.

Let practice a bit and start blaming the Democrats.

[bigbamboo]

Thailand may not have open government but at least the corruption process is becoming patently transparent.

Good to know the border police have smuggling under their control.

Edited October 16, 2012 by bigbamboo

[siampolee]

Personally I am of the opinion that the, ''Rice pledging scam scheme'' should be renamed the ''Rice Ponzi scam scheme.''

[fareastguy]

House of parliament or den of thieves ?

It can only go two ways with the PTP at the moment, get rich quick & get out or stay in power & eventually implode by your own misdeeds.

A mixed bag at the moment with politicians going in either direction.. but with only one outcome !

It's just a question of how long ?

[asiawatcher]

Nothing like compounding the problem and leaving it to the opposition when they get voted out.

[khunken]

Meanwhile Don Muang is being assessed (despite Yingluck's denial) for storage space. Wonder when they will have a look at Suvarnabumi. Smoke & mirrors from the Commerce Minister about G-to-G contracts or MOUs or something.

It's a looming rice mountain. Using the CAP example, they'll be paying farmers not to grow rice next.

[Baloo22]

"Deputy prime minister Chalerm Yubumrung said he had ordered the Marketing Organisation for Farmers and Public Warehouse Organisation (PWO) to allow police and the media to check warehouses for transparency in the rice pledging scheme. He is chairman of the commission on corruption prevention in the rice pledging scheme."

Doesn't this whole paragraph just scream "Fox in the hen-house!"

First; They will allow the police, otherwise known as the biggest gang of thieves in the country, to check.

Second; They will allow "media", undoubtedly the same ones they just took on a vacation trip to Europe, to check.

Last; Putting "Chalerm Yubumrung" and "corruption prevention" in the same paragraph is just icing on the cake!

[OzMick]

"Commerce permanent secretary Vatcharee Vimuktayon said corruption was not that easy given the stringent inspection measures".

Wasn't someone just transfered out of his job for finding massive corruption and given a "promotion" before he could spill the beans? These people never cease to amaze me. They think the Thai populace will believe anything they say no matter how ridiculous, ludicrous, laughable and absurd it is. And maybe they are right.

Commerce permanent secretary Vatcharee Vimuktayon was appointed in the last few days and has come out strongly in support of the scam. I'm quite sure that if that hadn't been her vehemently stated position, she wouldn't have been appointed.

[rubl]

"Commerce permanent secretary Vatcharee Vimuktayon said corruption was not that easy given the stringent inspection measures".

Wasn't someone just transfered out of his job for finding massive corruption and given a "promotion" before he could spill the beans? These people never cease to amaze me. They think the Thai populace will believe anything they say no matter how ridiculous, ludicrous, laughable and absurd it is. And maybe they are right.

Commerce permanent secretary Vatcharee Vimuktayon was appointed in the last few days and has come out strongly in support of the scam. I'm quite sure that if that hadn't been her vehemently stated position, she wouldn't have been appointed.

You mean she might be complaining it ain't easy ?

[kerrysum]

So what's gonna happen is this;

After pocketing loads of cash from the scheme, as the rice nears its sell-by date those who took the pledging money will buy it up cheap then sell it on the global market at a rate below the World rates, thereby making another killing.

This will then depress the price of rice due to over-supply, and the Thai farmers will lose out again when the politicos, having made/stolen billions, stop the scheme saying the gov can no longer afford it.

Not difficult to work out. Wouldn't be surprised if this was followed by a land grab from the poor farmers who naively believed they would benefit from this plan.

The sooner the populace realize that this gov doesn't do anything unless it makes its members richer, at everybody else's cost, the better.

As I remember, the pint is the pound the world round..... It is happening in every nation.... It is not just in Thailand.....

Just a thought.... Kerry