Calls escalate for review of Thai rice pledging scheme

[webfact]

Calls escalate for review of rice pledging scheme
By English News

BANGKOK, June 14 – Two leading economists have called on the government to seriously review the controversial rice pledging scheme to prevent Thailand from incurring more losses.

Somchai Jitsuchon, research director of the Thailand Development and Research Institute (TDRI), said the state subsidy for rice purchase has created heavy losses to the national economy and said that the government should switch to guarantee the price or make use of the future market on agricultural produce as a mechanism in controlling prices in the rice market.

He said the government must reduce the rice pledging price from Bt15,000 per tonne and limit the volume of rice each household is allowed to sell under the subsidy plan.

Former finance minister Pridiyathorn Devakula said he would not say how the government should review its rice purchases from farmers but a continuation of the scheme will cause more damages to the country.

Reducing the pledging price from Bt15,000 per tonne will only trim down assistance to farmers while damages to other aspects remain, he said.

Based on a subsidy of Bt200 billion for the scheme, Mr Pridiyathorn said, money that reaches farmers was only Bt80 billion while Bt120 billion went to irrelevant expenses, depreciation costs and interest.

He added, “Why will the government stubbornly carry on the scheme when Moody’s has sent out its warning? The Finance Ministry said the government will lose Bt136 billion in the first year and the 21 million tonnes of rice bought under the scheme will be sold in four years.

“Based on an annual 4 per cent interest plus 10 per cent stockpiling and depreciation costs, the government’s financial burden is Bt20 billion a year and the total loss is no less than Bt200 billion.”

In its meeting yesterday, the National Rice Policy Committee (NRPC) was reported by deputy permanent secretary for finance, Supa Piyajitti, on the losses in the 2011/2012 harvest season at less than Bt260 billion.

There were differences of opinions on certain issues and the NRPC agreed to meet again next Monday to have clearer information on the losses, said Commerce Minister Boonsong Teriyapirom, who also serves as NRPC chairman.

Losses in the first year of the pledging scheme amounted to Bt130 billion while total losses from three harvest seasons jacked up to Bt200 billion, the NRPC was told.

The Finance Ministry was assigned to re-study its figures which are conflicting to the Commerce Ministry’s calculation.

The NRPC’s Monday meeting is expected to discuss reduction of the rice pledging price, currently set at Bt15,000 per tonne. (MCOT online news)


-- TNA 2013-06-14

[Tatsujin]

Based on a subsidy of Bt200 billion for the scheme, Mr Pridiyathorn said, money that reaches farmers was only Bt80 billion while Bt120 billion went to irrelevant expenses, depreciation costs and interest.

So more than 50% gets wasted or pocketed . . . that's a really worthwhile scheme then . . . I despair

[MaxLee]

Too late,... the rip offs and dirty mafia business is already in the process...

[A Member]

This is a nice one for the government and it's new PR mob to handle.

Do they lose face by having a review which is an admission something is or may be wrong or do they brass it out and insist it's not as bad as is being portrayed ?

The only thing I'm sure of is no matter what it will be mis-handled

[Neilly]

I asked the wife the other day how much her family gets per tonne and was told Bht12,000...I have no idea how this scam scheme works but none of the figures add up

The NRPC’s Monday meeting is expected to discuss reduction of the rice pledging price, currently set at Bt15,000 per tonne. (MCOT online news)

But good luck to them finding plug to fill this plughole

[jalansanitwong]

120 billion baht in irrelevant expenses!

I dont think Rolls Royce or Ferrari would appreciate their product being refered to as irrelevant.

Edited June 14, 2013 by jalansanitwong

[OzMick]

The government claims the loss figures are wrong and can easily prove it by releasing the figures from the latest review of the scheme - unless a scheme that has been running more than 2 years hasn't had a review. And of course that would show total incompetence at least.

[Thai at Heart]

The government claims the loss figures are wrong and can easily prove it by releasing the figures from the latest review of the scheme - unless a scheme that has been running more than 2 years hasn't had a review. And of course that would show total incompetence at least.

Losses in the first year of the pledging scheme amounted to Bt130 billion while total losses from three harvest seasons jacked up to Bt200 billion, the NRPC was told.

The Finance Ministry was assigned to re-study its figures which are conflicting to the Commerce Ministry’s calculation.

They are desperately trying to find a way to spin this stuff, but they can't do it. The truth will set you free, or drop you in the poop, depending on your point of view.

[iancnx]

More of the same needed from any influential personalities of Thailand regardless of colour. I sense a momentum building up....... All eyes on DM Sunday.

[moe666]

80 billion to farmers, 120 billion to what ever, these numbers really help those poor Isaan farmers. It was a bad idea from day one and no matter how much lip stick you smeared on Yingluck you still had a pig. Notice none of the PTP boys show up to defend this mess come on GK I am sure you could get something good to say out of this.

[Ricardo]

If only 40% of the stated-cost actually reaches those rice-farmers involved, and given the increased-cost of their staple-food to everyone else in the country, why was this idea ever thought to be worth spending taxpayers' money on ?

Oh, it helped boost PTP's vote to 48.4%, of those who bothered to vote, right ...

Thaksin Thinks, Thailand Sinks !

[tragickingdom]

Who cares it is only 6.5 billion dollar and climbing. There are governments that sponsors hoteliers and tourist businesses when the income is slow, buy aircraft carriers than cannot be used or buy medical equipment that is worthless. All depends on the government in power, money is not an issue as long as it does not modernize the Thai economy and grant the status quo.

For 6.5 billion any farmer could have had a guaranteed income, all homes could have had fast free internet and roads could have been upgraded. All politicians are either idiots or criminals.

[phantomfiddler]

After reading various reports that the farmers are still only getting paid around 10-12,000 Bht per tonne, I just don,t understand why the farmers appear to enjoy getting ripped off in this obvious scam. Clearly the arithmetic does not add up and someone higher up the food chain is reaping the difference. Sooner or later they are going to realise they are being taken advantage of, but until then let them play games with their tablet computers while their fat cats are buying Lamborghinis.

[Thai at Heart]

After reading various reports that the farmers are still only getting paid around 10-12,000 Bht per tonne, I just don,t understand why the farmers appear to enjoy getting ripped off in this obvious scam. Clearly the arithmetic does not add up and someone higher up the food chain is reaping the difference. Sooner or later they are going to realise they are being taken advantage of, but until then let them play games with their tablet computers while their fat cats are buying Lamborghinis.

It depends when they deliver the rice. If they deliver it instantly that it comes out of the paddy, the moisture is above 15% so the deduction is for excess moisture or grade quality. These stated prices are subject to moisture and grade check, which is of course open to abuse.

This is the way it has always been and the farmers know it.

This is not mentioned in any of the main press which is very disingenuous.

Edited June 14, 2013 by Thai at Heart

[bigbamboo]

Who cares it is only 6.5 billion dollar and climbing. There are governments that sponsors hoteliers and tourist businesses when the income is slow, buy aircraft carriers than cannot be used or buy medical equipment that is worthless. All depends on the government in power, money is not an issue as long as it does not modernize the Thai economy and grant the status quo.

For 6.5 billion any farmer could have had a guaranteed income, all homes could have had fast free internet and roads could have been upgraded. All politicians are either idiots or criminals.

Sadly in Thailand's case it is usually both.

[hellodolly]

If only 40% of the stated-cost actually reaches those rice-farmers involved, and given the increased-cost of their staple-food to everyone else in the country, why was this idea ever thought to be worth spending taxpayers' money on ?

Oh, it helped boost PTP's vote to 48.4%, of those who bothered to vote, right ...

Thaksin Thinks, Thailand Sinks !

All I know is they are fol;lowing a business plan I tried on the stock market. I used to buy high and sell low. It didn't work.

Now how can that many people join the PTP and say it will work. To all you PTP red shirt idolizers take it from me buying high and selling low is not a good idea.

What I would like to know is if it is a small family farm are they included in it or do you have to havwe a certain ammount of land to qualify. If you do have enough land must it all be in rice?

In short is the small farmer getting any benefit from this scheme?

[pedro01]

After reading various reports that the farmers are still only getting paid around 10-12,000 Bht per tonne, I just don,t understand why the farmers appear to enjoy getting ripped off in this obvious scam. Clearly the arithmetic does not add up and someone higher up the food chain is reaping the difference. Sooner or later they are going to realise they are being taken advantage of, but until then let them play games with their tablet computers while their fat cats are buying Lamborghinis.

The reason the farmers dont' complain is because they feel they are getting something and that is much better than the nothing they generally get.

[waza]

All it took was one PTP politician to complain to the DSI to get them to investigate the Dems rice scheme, despite a chorus of call by national and international groups, Tarit and the DSI refuse to investigate the blatantly corrupt PTP rice scam.

Red democracy in action.

Edited June 14, 2013 by waza

[waza]

If only 40% of the stated-cost actually reaches those rice-farmers involved, and given the increased-cost of their staple-food to everyone else in the country, why was this idea ever thought to be worth spending taxpayers' money on ?

Oh, it helped boost PTP's vote to 48.4%, of those who bothered to vote, right ...

Thaksin Thinks, Thailand Sinks !

All I know is they are fol;lowing a business plan I tried on the stock market. I used to buy high and sell low. It didn't work.

Now how can that many people join the PTP and say it will work. To all you PTP red shirt idolizers take it from me buying high and selling low is not a good idea.

What I would like to know is if it is a small family farm are they included in it or do you have to havwe a certain ammount of land to qualify. If you do have enough land must it all be in rice?

In short is the small farmer getting any benefit from this scheme?

You loose nothing following your business plan if your investing with someone else's money and you still profit from your management fees.

[slapout]

The NRPC, conviently chaired by the Commerce ministry, seems to have left out, any reference to INPUT from a few groups who have a real role in this program. The Ag ministry, Ag bank, exporters, etc

There have been enough numbers given to the press over the past few months, that there can be little doubt that this government, by ignoreing them seem to consider themselves as invenceiable.as well as indistructable. This does seem to indicate a complete melt down of any mental compentance that may have been present at some stage, in their adult lives.

If the Oppositation cannot or will not find ample legal reason and the procedure to follow to shut this bunch and everyone with like ethics/morals involved in this program down, penalize, sieze assits, etc, Neither group should be allowed to remain in office.

I used to consider pimps as about the lowest dregs of society, but this nest of vipers, may set a new low, in their plunder of the nations assits, for present and future generations.

[GentlemanJim]

If only 40% of the stated-cost actually reaches those rice-farmers involved, and given the increased-cost of their staple-food to everyone else in the country, why was this idea ever thought to be worth spending taxpayers' money on ?

Oh, it helped boost PTP's vote to 48.4%, of those who bothered to vote, right ...

Thaksin Thinks, Thailand Sinks !

Ricardo, that strapline deserves to go viral! I am going to try and give it a helping hand

I imagine by tomorrow we will have word of a class action being filed against the two economists above for saying that out of every 200 Billion "Bt120 billion went to irrelevant expenses, depreciation costs and interest". The clock is set and running

[rubl]

Our Great Thinker in Dubai is indeed mightily quiet on the 'rice pledging' scheme. He's probably thinking hard on how to get his Bloomberg interview from September, 2012 removed. It already started with setting the right tone :-)

"Former Thai Prime Minister Thaksin Shinawatra said a rice-purchase program should be extended for several more years, rebuffing critics who say the policy has increased government debt and encouraged corruption."
http://www.bloomberg.com/news/2012-09-24/thai-rice-policy-should-stay-several-more-years-thaksin-says.html

[ratcatcher]

.............................................

.............................................S.S. Costa Lottabaht underway.

"My fellow Thais, do not panic, everything is under control. We just don't quite understand the extent of the problem"

Captain Fantastic.

[Thai at Heart]

............................................. costa.jpg

.............................................S.S. Costa Lottabaht underway.

"My fellow Thais, do not panic, everything is under control. We just don't quite understand the extent of the problem"

Captain Fantastic.

TS.jpg

By the time this finishes, he might be persona non grata even in his political strongholds.

[OzMick]

.............................................costa.jpg

.............................................S.S. Costa Lottabaht underway.

"My fellow Thais, do not panic, everything is under control. We just don't quite understand the extent of the problem"

Captain Fantastic.

TS.jpg

Nice photo. what brand of ice-cream does he sell?

[ratcatcher]

.............................................costa.jpg

.............................................S.S. Costa Lottabaht underway.

"My fellow Thais, do not panic, everything is under control. We just don't quite understand the extent of the problem"

Captain Fantastic.

TS.jpg

Nice photo. what brand of ice-cream does he sell?

Basking & Robbing. Democwacy wanilla rice cream.

Edited June 14, 2013 by ratcatcher

[clockman]

Who cares it is only 6.5 billion dollar and climbing. There are governments that sponsors hoteliers and tourist businesses when the income is slow, buy aircraft carriers than cannot be used or buy medical equipment that is worthless. All depends on the government in power, money is not an issue as long as it does not modernize the Thai economy and grant the status quo.

For 6.5 billion any farmer could have had a guaranteed income, all homes could have had fast free internet and roads could have been upgraded. All politicians are either idiots or criminals.

90% criminals!

[kimamey]

.............................................costa.jpg

.............................................S.S. Costa Lottabaht underway.

"My fellow Thais, do not panic, everything is under control. We just don't quite understand the extent of the problem"

Captain Fantastic.

TS.jpg

Nice photo. what brand of ice-cream does he sell?

I've no idea but I certainly wouldn't buy any.

[KireB]

I asked the wife the other day how much her family gets per tonne and was told Bht12,000...I have no idea how this scam scheme works but none of the figures add up

The NRPC’s Monday meeting is expected to discuss reduction of the rice pledging price, currently set at Bt15,000 per tonne. (MCOT online news)

But good luck to them finding plug to fill this plughole

I asked the wife the same, and her answer was 11,000 baht a tonne!

[jcb2001]

Our Great Thinker in Dubai is indeed mightily quiet on the 'rice pledging' scheme. He's probably thinking hard on how to get his Bloomberg interview from September, 2012 removed. It already started with setting the right tone :-)

"Former Thai Prime Minister Thaksin Shinawatra said a rice-purchase program should be extended for several more years, rebuffing critics who say the policy has increased government debt and encouraged corruption."

http://www.bloomberg.com/news/2012-09-24/thai-rice-policy-should-stay-several-more-years-thaksin-says.html

. Thaksin is too busy being a tourist in America. He said on his facebook page that he went to the Whitehouse in Washington DC. Not for a meeting with Obama, mind you. He had his picture taken on Pennsylvania Ave outside the Whitehouse gates. Like a normal tourist would. So much for any meetings with US diplomats. Glad he's being distracted trying to sound "worldly important" to comment on the rice pledging scam back in Thailand.