What To Do About Thailand's Rice Glut

[webfact]

What to do about Thailand's Rice Glut

Written by Samarendu Mohanty

The government needs to reduce uncertainty in the global market

BANGKOK: -- The Thai rice mortgage scheme continues to receive a fair amount of media bashing even after completing its one-year anniversary on Oct. 7. The debate on its impact on Thailand and the rest of the world continues to take center stage at a majority of rice conferences in the region. The media and rice gurus have all ganged up on this scheme because nobody expected this from Thailand.

This is the country that remained open for business during the 2007 rice crisis when India and Vietnam banned exports and provided some stability to a market that was chaotic and getting out of control. Despite all the negative publicity and criticism, Thai policymakers remain unruffled and publicly vow to continue with the program.

Questions come to mind: Is this the only country with such a program? Does it really create so much uncertainty in the global rice market?

To answer the first question, Thailand is not the only country with a price support program. As a matter of fact, most of the rice-growing countries in Asia have some form of price support program for farmers. These have different names and somewhat different operational mechanisms but all of them are designed to provide a guaranteed floor price for farmers. [more...]

Full story: http://www.asiasenti...4953&Itemid=437

-- Asia Sentinel 2012-11-07

[asiawatcher]

Everyone should read the full article by the Philippine journalist. With India at less than half the cost of Thailand (20 cents per kilo as opposed to Thailand at 48 cents) it is no wonder they have taken market share and as stated, for the first time in 30 years, Thailand has been toppled. He also clearly states it is a populist decision.

I think everyone agrees the rice scam is not based on any fiscal responsibility, far from it, and whilst the debate rages, there is nothing being done about solving the issue as no one is taking on this Govt. There should be a cooperative by rice farmers who refuse to sell (mortgage) their rice to the Govt and they can then sell directly to the market at the existing prices i.e. about $120 per tonne below the Govt price to meet what the market will buy for. This would mean they get a huge increase than by selling to the market over and above what the Govt was dishing out and cut the Govt out as the middleman. There is no 'law' saying all rice must be sold to the Govt so drop them out, deal direct and they will prosper. Perhaps it needs an enterprising Farang to set it up for them.

[jerrysteve]

Thailands Powers that be purusant to the Rice Scheem, must like taking it the Ole Hershey Hwy.d

They could give some of that large glut to the families who's children have to food in their poor little stomach and who have no clothes on their

back...

The would be the Buddhist way, but it is obvious they are as Buddhist as a Scorporion.

Edited November 7, 2012 by jerrysteve

[OzMick]

I have a 3 step plan to solve the problem:

1/ Stop paying subsidies

2/ Sell at world market rates

3/ Arrest, prosecute and jail those who planned/enacted this scam and benefited from it.

[Crossy]

Echoes of the EEC beef and butter mountains and wine lake of the 1970s which left huge quantities of unwanted food mouldering away in vast stockpiles. It was eventually given away to the needy (we got some canned beef, looked and tasted like dog food).

[jaltsc]

OR...Implement an educational system which prepares the populace to work in industries that produce products in high demand worldwide. Instead of looking at India's rice production, look at Korea's transformation from a peasant agricultural society into a giant in the technical industries. LOOK AHEAD...NOT BACKWARDS!!!

[bigbamboo]

What about selling the excess rice at a discount to the poor Thai people to help compensate for the missing 300 minimum wage they were promised?

[jonclark]

I have a 3 step plan to solve the problem:

1/ Stop paying subsidies

2/ Sell at world market rates

3/ Arrest, prosecute and jail those who planned/enacted this scam and benefited from it.

I have an even better idea - Just use all the rice to make the worlds biggest (and most expensive) Paella and hey presto once again Thailand is number one in the world for a rice based venture

Think about it bus in all the rural folk for a day out and a big feed, some music and viola all the rice is used up everyone happy and part of a Guinness world record; the proverbial turd has been polished PTP popularity soars amongst its fan base who all go home happy and full stomachs, with a bag of paella for breakfast. Jobs a good un.

[FOODLOVER]

Casseroles.

[jerrysteve]

OzMick: Wishful thinking and that would be the best scenarios as you describe... Edited November 7, 2012 by jerrysteve

[DP25]

The Thai government may also want to think about direct cash transfers to farmers that are not linked to current production. Japan and South Korea have recently moved away from price support to direct payments and the government of India is pondering converting subsidies for food, petroleum, and fertilizer to direct cash transfers to beneficiaries.

Thats a great idea, but unfortunately that does not allow for the same opportunities for the middle men to steal the bulk of the subsidy. The purpose of this program is not to help farmers, but to give a multi billion dollar cash transfer from the treasury to the political connected in exchange for them supporting Thaksin's pardon and overturning the ruling that confiscated the money he stole from the Thai people.

[hellodolly]

OR...Implement an educational system which prepares the populace to work in industries that produce products in high demand worldwide. Instead of looking at India's rice production, look at Korea's transformation from a peasant agricultural society into a giant in the technical industries. LOOK AHEAD...NOT BACKWARDS!!!

That would require a decent education system. not on the horizon yet. It should be a thing of the past then Thailand could really prosper but it is a thing of the future. Korea did not become a giant in technical industries by merely copying every one else they learned to do innovative work on their own.

[LuckyLew]

Thaksin says it will come good and all will benefit

Since Thaksin likes this scheme is must be a good idea

wink wink nudge nudge

[Keesters]

What to do about Thailand's Rice Glut

Plenty of hungry people in Thailand and around the world. Why not feed them.

[Keesters]

Echoes of the EEC beef and butter mountains and wine lake of the 1970s which left huge quantities of unwanted food mouldering away in vast stockpiles. It was eventually given away to the needy (we got some canned beef, looked and tasted like dog food).

So you've eaten DOG FOOD!!!!!!

[worgeordie]

Echoes of the EEC beef and butter mountains and wine lake of the 1970s which left huge quantities of unwanted food mouldering away in vast stockpiles. It was eventually given away to the needy (we got some canned beef, looked and tasted like dog food).

So you've eaten DOG FOOD!!!!!!

Only Pedigree Chum, nothing but the best for me regards Worgeordie

[hansgruber]

Turn it into Lao Kao blue label.

[SICHONSTEVE]

Everyone should read the full article by the Philippine journalist. With India at less than half the cost of Thailand (20 cents per kilo as opposed to Thailand at 48 cents) it is no wonder they have taken market share and as stated, for the first time in 30 years, Thailand has been toppled. He also clearly states it is a populist decision.

I think everyone agrees the rice scam is not based on any fiscal responsibility, far from it, and whilst the debate rages, there is nothing being done about solving the issue as no one is taking on this Govt. There should be a cooperative by rice farmers who refuse to sell (mortgage) their rice to the Govt and they can then sell directly to the market at the existing prices i.e. about $120 per tonne below the Govt price to meet what the market will buy for. This would mean they get a huge increase than by selling to the market over and above what the Govt was dishing out and cut the Govt out as the middleman. There is no 'law' saying all rice must be sold to the Govt so drop them out, deal direct and they will prosper. Perhaps it needs an enterprising Farang to set it up for them.

Whooaaa!!!!

Did I read it right? "An enterprising farang to set it up" - you are kidding, I hope, as they will throw you out of Thailand for making such an audacious statement such as this up!!.

[timewilltell]

The Thai government may also want to think about direct cash transfers to farmers that are not linked to current production. Japan and South Korea have recently moved away from price support to direct payments and the government of India is pondering converting subsidies for food, petroleum, and fertilizer to direct cash transfers to beneficiaries.

Thats a great idea, but unfortunately that does not allow for the same opportunities for the middle men to steal the bulk of the subsidy. The purpose of this program is not to help farmers, but to give a multi billion dollar cash transfer from the treasury to the political connected in exchange for them supporting Thaksin's pardon and overturning the ruling that confiscated the money he stole from the Thai people.

And there in a nutshell you have it - the farmers benefit little to nothing from this scheme now, will probably lose in the medium term when the whole idea has run it's course. It is not just the middlemen and large farmers (who are themselves middlemen), the large scale rice processing families but also the warehousemen who have sprung up from the elite who are offering to store the rice at outrageous prices - I read somewhere they can recover the entire cost of the warehouse and land in just 18 months.

Having some subsidy for the poor farmers is not necessarily such a terrible thing but most ideas of this sort have not worked as the EU schemes testify - and I am sure there are others - but the subsidy has to actually get to the poor people before being sucked up by the traitors who are scamming the country with their corruption and corrupt connections - those people should be treated exactly as traitors for that is what they are.

[mayday49]

Everyone should read the full article by the Philippine journalist. With India at less than half the cost of Thailand (20 cents per kilo as opposed to Thailand at 48 cents) it is no wonder they have taken market share and as stated, for the first time in 30 years, Thailand has been toppled. He also clearly states it is a populist decision.

I think everyone agrees the rice scam is not based on any fiscal responsibility, far from it, and whilst the debate rages, there is nothing being done about solving the issue as no one is taking on this Govt. There should be a cooperative by rice farmers who refuse to sell (mortgage) their rice to the Govt and they can then sell directly to the market at the existing prices i.e. about $120 per tonne below the Govt price to meet what the market will buy for. This would mean they get a huge increase than by selling to the market over and above what the Govt was dishing out and cut the Govt out as the middleman. There is no 'law' saying all rice must be sold to the Govt so drop them out, deal direct and they will prosper. Perhaps it needs an enterprising Farang to set it up for them.

Whooaaa!!!!

Did I read it right? "An enterprising farang to set it up" - you are kidding, I hope, as they will throw you out of Thailand for making such an audacious statement such as this up!!.

But first Flog him to show such weak logic... rice should be used to make construction materials and ethanol.......

[RubbaJohnny]

Obvious husks bound by sticky rice to produce dams for electric,cure aids, floods and run off for skin whitening,all enriched with new improved falang /kek/ghost repellent.

Belief in big lucky JackuCon armulet and tad of Hun Sen darkish magic will ensure the land of the free is ready for Futsal 2121

[SICHONSTEVE]

Obvious husks bound by sticky rice to produce dams for electric,cure aids, floods and run off for skin whitening,all enriched with new improved falang /kek/ghost repellent.

Belief in big lucky JackuCon armulet and tad of Hun Sen darkish magic will ensure the land of the free is ready for Futsal 2121

A touch ambitious maybe as, it only gives tem 109 years to get that stadium ready - everything else you mention should be 'a pinch of salt'!!

Edited November 7, 2012 by SICHONSTEVE

[Songhua]

Build flood walls with it. Whatever's left over can be utilised as F1 barriers.

Seriously, there's absolutely no benefit to anyone in having it sit there .... why not just dump it on the world cheap and wear the loss?

[ratcatcher]

Here's a headline I'd love to see in the newspapers worldwide.

"Thaksin Shinawatra orders Puea Thai Party to donate excess rice to feed the world's hungry"

Thaksin Shinawatra de facto Prime minister of Thailand today ordered 50% of the huge piles of stored rice stocks to be donated to the poorest nations to feed their starving populations. Mr Thaksin a billionaire living in self imposed exile spoke candidly about his desire to help those unable to help themselves. He regrets the rice pledging scam scheme and says it was not really his idea at all.

He is planning to use his own funds to pay the Thai government for the cost of the rice and shipping to destinations, mainly in Africa and N.Korea. He says that he realises that his jet set life style is counter to the teachings of the Lord Buddha.

His spokesman Noppadon Patama was nowhere to be found for comment.

Now that would make a story.

[geriatrickid]

Dump it on the world market, particularly in thse countries purchasing from India.

Let India have a taste of its own medicine. The UN food program purchases large amounts of rice and Thailand can easily undercut other suppliers. I'd expect Vietnam which has been badly hurt by India to participate.

[Dap]

Thailands Powers that be purusant to the Rice Scheem, must like taking it the Ole Hershey Hwy.d

They could give some of that large glut to the families who's children have to food in their poor little stomach and who have no clothes on their

back...

The would be the Buddhist way, but it is obvious they are as Buddhist as a Scorporion.

+1

[jayjayjayjay]

I'm sure glad TV users have absolutely nothing to do with rice trading...

[hellodolly]

Dump it on the world market, particularly in thse countries purchasing from India.

Let India have a taste of its own medicine. The UN food program purchases large amounts of rice and Thailand can easily undercut other suppliers. I'd expect Vietnam which has been badly hurt by India to participate.

Well you want to teach India a lesson by stealing money from the Thais.

[rubl]

Taking a taxi from BTS Victory Monument to home I had a driver from RoiEt. We talked a bit and he told me after the rice cutting he always goes to Bangkok for some extra income. This season the amount of rice (Hom Mali) was about 50-60% of usual (less rain), but the price per 'unit' a bit higher than last year. So he was relatively happy.

[Thai at Heart]

Everyone should read the full article by the Philippine journalist. With India at less than half the cost of Thailand (20 cents per kilo as opposed to Thailand at 48 cents) it is no wonder they have taken market share and as stated, for the first time in 30 years, Thailand has been toppled. He also clearly states it is a populist decision.

I think everyone agrees the rice scam is not based on any fiscal responsibility, far from it, and whilst the debate rages, there is nothing being done about solving the issue as no one is taking on this Govt. There should be a cooperative by rice farmers who refuse to sell (mortgage) their rice to the Govt and they can then sell directly to the market at the existing prices i.e. about $120 per tonne below the Govt price to meet what the market will buy for. This would mean they get a huge increase than by selling to the market over and above what the Govt was dishing out and cut the Govt out as the middleman. There is no 'law' saying all rice must be sold to the Govt so drop them out, deal direct and they will prosper. Perhaps it needs an enterprising Farang to set it up for them.

Whooaaa!!!!

Did I read it right? "An enterprising farang to set it up" - you are kidding, I hope, as they will throw you out of Thailand for making such an audacious statement such as this up!!.

Don't worry, if it wasn't attached to an MNC, any enterprising farang messing with the domestic rice market would probably befall a horrendous accident or accidentally shoot himself 3 times in the head whilst hanging himself, in the presence of three naked dwarf katoeys, a sheep, all wrapped in clingfilm with baby oil.