Thai Govt Rebuts Rice Report

[OzMick]

Notice how the aim of the rice scam has changed from "Help POOR Rice Farmers" to "Help Rice Farmers".

What's the chances that not one Minister or PTP MP is involved with rice farming or renting land to rice farmers?

[rubl]

Don't be so negative, guys. At least this is a separate budget and doesn't effect the National Budget or it's deficit :-)

[smedly]

This is astounding - maybe Moody's should have been exactly clear on what they wanted -

spend so far to buy rice from farmers - price per tonne

sold so far on the market - price and quantity

amount currently held in storage - tonne

current market price for stored rice - price per tonne

Storage costs - per month

= ?

seems like a pretty easy calculation

I'll bet they have absolutely no idea of any government financials - only that they need to borrow 2.5 trillion or they will run out of money very soon

It is time for this government to make a very fast exit and have every one of them audited and investigated by the DSI

[OzMick]

Perhaps Yingluk should consider buying a billy goat to help with the rebuttals. Another goat on the team could come in handy.

[OzMick]

"Meanwhile, the Thai Rice Farmers Association acknowledged the huge losses incurred by the government under the rice-pledging scheme, and expressed worries about the future and the lower rice quality."
Association president Prasith Boonchuey said......."Despite the high pledging price, farmers have never got high returns and still faced a high debt burden after the higher cost of production. Farmers do not want this unstable pledging at a high price as the government will finally need to review the policy because of huge losses and financial liquidity problems. Farmers have ignored development of rice quality because the government has focused only on price, while they have no plan to promote sustainable growth of rice plantations."
Prasith said the pledging policy had not helped farmers to improve their living standards.

Seems just yesterday that CMK told us that the association was happy with the scheme. Perhaps he would like to comment today.

Edited June 8, 2013 by OzMick

[hellodolly]

Well I have to agree that we will not know the total loss until the rice is all sold.

Each day the cost for storage goes up and the amount of unsellable rice goes up. These are losses they can give us. They do not depend on the market they are unavoidable costs.

[hellodolly]

"Meanwhile, the Thai Rice Farmers Association acknowledged the huge losses incurred by the government under the rice-pledging scheme, and expressed worries about the future and the lower rice quality."

Association president Prasith Boonchuey said......."Despite the high pledging price, farmers have never got high returns and still faced a high debt burden after the higher cost of production. Farmers do not want this unstable pledging at a high price as the government will finally need to review the policy because of huge losses and financial liquidity problems. Farmers have ignored development of rice quality because the government has focused only on price, while they have no plan to promote sustainable growth of rice plantations."

Prasith said the pledging policy had not helped farmers to improve their living standards.

Seems just yesterday that CMK told us that the association was happy with the scheme. Perhaps he would like to comment today.

He is waiting for a skype call from Dubai

[rubl]

Don't forget that this Sunday Dept. Minister for Agriculture, Pheu Thai party list MP and UDD leader Nattawut will personally explain the 'rice pledge scheme' to farmers in the fair city of Phitsanolok. I'm sure interested TV members will be more than welcome especially in the correct attire.

[OzMick]

Boonsong - "....the government still has more than 10 million tonnes of rice in the stockpiles."

Supat Eauchai (vice president of BAAC) - "The pledging had added 25 million tonnes of rice to the government stocks."

Natthawut - "......the government had several million tonnes of rice stocks."

Pick you favourite lie. Anyone attending Natthuwut's talk on Sunday should ask him to define "several".

[Bagwan]

Wrong answer. Go back do it again, I want it on my desk on Monday morning.

Aw. Can't I have 90 days just like everybody else?

[Payboy]

Govt rebuts rice report

Presents own lies report.

[Bagwan]

Perhaps Yingluk should consider buying a billy goat to help with the rebuttals. Another goat on the team could come in handy.

A Billy goat to keep the sheep in order? No,no,no. You need a good Welsh Border Collie. I think that bitches are more effective.

[chainarong]

What is needed is an independent audit, the problem with this administration is their credibility , transparency is under question every time they say anything, because no one in their right mind trusts them and why should anybody trust them , just look at the Bandits in the ministry , put another way , would you trust these people with your money.

[Bagwan]

ou are right, sorry.

The ministry added that the government had already earned Bt120 billion from release of rice stocks.

(spent)Bt661.224 - (Worth)Bt226 + (sold)Bt120 = Bt335.224 Billion. Bt215.224.

Plus finance and loan fees and warehousing/storage and spoilage loss. The Bt260 billion loss is right in the ballpark.

Nope... (spent)Bt661.224 - (Worth)Bt226 + (sold)Bt120 = Bt335.224 Billion Bt215.224. Bt315.224

And some wonder that the government cannot arrive at the right figure..

Bt661.224 - Bt226 + Bt120 = B555.224

Bt661.224 - (B226 + B120) = B315.224

Just to add to the confusion.

[Lite Beer]

Kittiratt: 260-billion-baht losses not entirely incurred by rice pledging scheme

BANGKOK, 7 June 2013 (NNT) - Deputy Prime Minister for Economic Affairs Kittiratt Na-Ranong has explained that the earlier reported losses of 260 billion baht caused by the rice pledging scheme were made up of figures from various crop mortgage programs.

Mr Kittiratt on Friday said the 260-billion-baht losses had been accumulated for many years across the board of many crop mortgage programs. As for budget of the rice pledging scheme for the 2011/2012 crop year, the minister said he still could not disclose if the budget spent had exceeded the set amount of 500 billion baht. He only said that the Cabinet had earlier authorized the Ministry of Finance to increase the budget and finance the scheme with money from other sources.

The Deputy Prime Minister has instructed the Fiscal Policy Office to clarify the matter to Moody’s after the agency announced to downgrade Thailand due to financial damages allegedly caused by the controversial rice pledging scheme.

-- NNT 2013-06-08

[rubl]

It's THB 260 billion but not all on 'rice pledge' only. Now that's a relieve :-)

[paddyjenkins]

These government buffoons need to learn that in the world of international economics and politics their kind of answers look sad, dishonest, remedial and idiotic. They look that way because they are. Even if Moody's don't conclude the losses justify a downgrade, the world will conclude that Thailand is a long way from growing up. In time these two bit little men in Thai politics had better understand that the foreigners they so despise are generally far more intelligent, far more sophisticated and carry far more economic clout than they do. Learn that or suffer the consequences.

[tomross46]

Yingluck and Boonsong between them do not even understand Economics 101 that in any project you have a budget and a forecast before you get any money allocated. The budget was the costings of what you were going to do, and the forecast allows you to update as you move through the project to show gains or losses. That these clowns do not even have any idea of what they are projecting to lose at any scenario is incompetence at its best. And these thevies are going to steal Baht 2 trillion to spend in the same incompetent way?

Moody's should kick there ass's on the world stage harder than it is getting kicked now.

That these clowns do not even have any idea of what they are projecting to lose at any scenario is incompetence.

You are asking the wrong question, what should be asked is how much went into the pockets of which politician or PT supporter. That they know, if the money went to one of these, it is not a loss.

Edited June 8, 2013 by tomross46

[GentlemanJim]

"Meanwhile, the Thai Rice Farmers Association acknowledged the huge losses incurred by the government under the rice-pledging scheme, and expressed worries about the future and the lower rice quality."

Association president Prasith Boonchuey said......."Despite the high pledging price, farmers have never got high returns and still faced a high debt burden after the higher cost of production. Farmers do not want this unstable pledging at a high price as the government will finally need to review the policy because of huge losses and financial liquidity problems. Farmers have ignored development of rice quality because the government has focused only on price, while they have no plan to promote sustainable growth of rice plantations."

Prasith said the pledging policy had not helped farmers to improve their living standards.

Seems just yesterday that CMK told us that the association was happy with the scheme. Perhaps he would like to comment today.

It might be a few hours yet, no doubt waiting instructions from a secretary in Dubai

[GentlemanJim]

So, picture the scenario:

You are the chairman of a board of investment banks and someone comes in to the board room for interview. They are asking for a 2.2 Trillion Baht loan, much of which is not needed for several years and much of which it is undecided exactly what it will be spent on. The terms that the 'customer' is eager to accept is that the repayments will total over 5.5 Trillion Baht.

When you quiz them of their recent experience in handling large amounts of money for projects and their budgetary discipline. They admit that in recent projects so far amounting to 650 Billion baht they have lost at least 260 Billion and claim they won't be able to work out how much until they have sold all their rice in 3 years (how much will you pay for 3 year old rice? - and bear in mind the rice has an annual storage fee of 9600 baht per ton). Other notable successes include losing most of a 350 million baht water management plan budget that was needed in an emergency following the floods in Bangkok.

Despite an international economics and credit company being able to give a fairly accurate ball park figure of the losses without any access to warehouses and hidden documents, the customer who has full access to those things is unable to calculate anything.

You as a board now have to decide if you are going to approve the 2.2 Trillion baht loan. Will your answer be yes or no?

There are only two lots of people that can grant this loan either the Chinese or maybe someone in the Middle East (Though that is the least likely of the two), the Chinese will not care if the loan is repaid or what is done with it, as security for the loan will be Thailand itself

Edited June 8, 2013 by GentlemanJim

[givenall]

If the data looks bad, then just say is to impossible to determine. Especially when there's no way to make them to provide information

Sent from my ST18a using Thaivisa Connect Thailand mobile app

[marcusd]

"Mr Boonsong said the rice subsidy scheme, launched in late 2011, has contributed to the country’s gross domestic product (GDP) growth at 0.5-1 per cent while 14-15 million rice-cultivating households could sell their paddy at higher prices."

 

CMK did you write that?

 

Borrowed money DOES NOT contribute to GDP. FONT WORRY FOLKS this government is assisying us farrangs because eventhough our countries economies are stuffed and our currecies weak we are sbout to get a bonanza in the exchange rate thanks to Mr Moodies who will fowngrade this ostrich government who leavr their heads in the sand

Sent from my GT-N7000B using Thaivisa Connect Thailand mobile app

[marcusd]

These dumbos know EXACTLY what 5hey are doing. Propping up figures to get loans for projects run by cronies and relatives so 65 percent goes back to THEM. Not fools at all. Master thieves

Sent from my GT-N7000B using Thaivisa Connect Thailand mobile app

[marcusd]

Nobody... not even starving africsns...want old mouldy crappy product.

In business this is commonly called A WRITE OFF. I think mesdrs Moodys knows so thailands bonds and interestvrates will rise. 2.2 trillion baht wil become 6trillion

Sent from my GT-N7000B using Thaivisa Connect Thailand mobile app

[Maggusoil]

Why do we let governments fiddle with business? This is a bit like the climate debate, where a whole bunch of people got to say something, without scientifically analysing it properly and then got found out and now nobody trusts them and doesn't know who to believe.

Why have any government scheme tick away behind closed doors with salesmen and women with pearly teeth, like sharks, spilling the beans?

Where are the professional consultant accountants and businessmen, with published records of the actual costs? For all to see. Very interesting. They can hide their "take" if there is one, in the losses. Why do we believe them?

[belg]

no one wants to lose face, so they continue this scam even if it bankrupts the country... in that time, they will not be in office anymore, so not their problem, only for the next generation to pay the debt for the next xx years, same as the trillion loan scam

[Bluespunk]

i imagine this man's office is full of 'dads army like' characters running round in circles screaming 'Doomed, we're all doomed, we're doomed' in scottish accents.

[slapout]

This government is being run by a man who has plundered the national treasury once, is ruling via a complete novice whose only claim to fame seems to be her wardrobe (iffy), Her support crew (cabinet) is comprised of known, and acknowledged shysters (polite term), then throw in a few individuals whose legal right to hold office is terminated, several awaiting legal procedings, and as these are the reputable part of this government, throw in a few thugs, a blacklisted , a few requests for extridition, etc.

Now to make it more interesting, detrime how many of this group were actually elected by the Thai people to hold any position.?

There are so many lessons that could be learned form this governments lack of anything approaching "Honesty" its lack of leadership, governorance, morals and ethics, etc if anyone is interested in more than self enrichment.

[hellodolly]

Kittiratt: 260-billion-baht losses not entirely incurred by rice pledging scheme

BANGKOK, 7 June 2013 (NNT) - Deputy Prime Minister for Economic Affairs Kittiratt Na-Ranong has explained that the earlier reported losses of 260 billion baht caused by the rice pledging scheme were made up of figures from various crop mortgage programs.

Mr Kittiratt on Friday said the 260-billion-baht losses had been accumulated for many years across the board of many crop mortgage programs. As for budget of the rice pledging scheme for the 2011/2012 crop year, the minister said he still could not disclose if the budget spent had exceeded the set amount of 500 billion baht. He only said that the Cabinet had earlier authorized the Ministry of Finance to increase the budget and finance the scheme with money from other sources.

The Deputy Prime Minister has instructed the Fiscal Policy Office to clarify the matter to Moody’s after the agency announced to downgrade Thailand due to financial damages allegedly caused by the controversial rice pledging scheme.

-- NNT 2013-06-08

He is busy trying to figure out which lie to tell.

[Baerboxer]

I'm sure the government knows exactly how much has been spent, and who has profited by how much. The theatricals we see now are to find ways to avoid having to actually reveal it.

More concerned with not de-railing the gravy train until the 2.2 trillion is banked.

Moody's and the international credit and finance market will not be so easily fooled by this pantomime. Telling them that you can't figure things out or have any idea how to manage a budget is not going to impress them. But, somebody is thinking this is a better option than having to reveal the true figures or try outright lies.