PM Yingluck: Rice pledge scheme a boon to economy, farmers

[webfact]

PM: Rice pledge scheme a boon to economy, farmers
By English News



BANGKOK, June 19 – Prime Minister Yingluck Shinawatra insisted today that the government's rice pledging scheme, though suffering heavy losses, has stimulated Thailand’s gross domestic product and farmers’ cultivation of rice.

“It is a losing scheme in terms of accounting but, in reality, farmers take the benefit. It’s in accord with the government’s policy,” she said.

She was referring to the latest report on the Bt130 billion losses from the rice pledging scheme in the 2011/2012 harvest season while the tally of losses in the remaining two crops are pending official announcement.

It was estimated that losses from the three harvest seasons could be as high as Bt260 billion but the Commerce Ministry flatly turned down that figure.

Ms Yingluck said the National Rice Policy Committee (NRPC) has yet to give a concrete proposal on lowering the pledging price from Bt15,000 per tonne.

Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong said earlier that the price could be cut from Bt15,000 per tonne given the declining prices in the global grains market.

To boost public sentiment in light of heavy losses in the highly-criticised pledging scheme, Ms Yingluck said the cabinet assigned Commerce Minister Boonsong Teriyapirom to set up an impartial surveying panel to check rice stockpiles at all warehouses and urgently report back to the government.

“If there are problems at stockpiles, rice mill operators will have to compensate,” she said. “The figures we received as of January 31 are similar but the inventory figures are different.” (MCOT online news)


-- TNA 2013-06-19

[webfact]

Rice warehouse found up to standard, after rumors of rotting rice

CHACHOENGSAO, 19 June 2013 (NNT) – Chachoengsao governor Rueangsak Mahawinitchaimontri on Tuesday led the provincial rice committee and members of the press in an inspection of rice under the rice mortgage program that was being kept in a central warehouse in the province, after reports of rotten warehouse rice recently spread.

Bags of rice were found stacked up over 10 meters high in the Marketing Organization for Farmers' warehouse in Phanomsarakham district. The Governor said after the inspection that most of the rice was still of good quality, and the only flaw was that some of the rice bags had not been tidily stored. The warehouse was also found to be up to standard, with adequate ventilation and no leaks.

Reports circulated earlier alleged that the rice kept in the warehouse was rotting and emitting foul smell.

Internal Trade Department officials who also participated in the inspection said they would take matters to court if the media distorted the facts in their reporting.


-- NNT 2013-06-19

[webfact]

Cabinet yet to approve cut in rice mortgage price

BANGKOK, 19 June 2013 (NNT) - The Cabinet has been informed of the 136-billion-baht loss of the rice mortgage scheme and has resolved to adjourn its decision on the idea to decrease the mortgage price.

Prime Minister’s Office Minister Warathep Rattanakorn said after the Cabinet meeting on Tuesday that apart from the 136-billion-baht loss of the rice mortgage scheme already submitted in the report, the Finance Ministry’s subcommittee had found that there was also unaccounted rice stock of around three million tons. This amount of rice might drive the loss figure up further.

Mr Warathep revealed that the prime minister had therefore ordered a team to inspect the rice kept in all warehouses under the mortgage program nationwide. The minister insisted that any creative accounting in the rice pledging scheme would be subject to criminal punishment.

Meanwhile, the Cabinet instructed the Ministry of Commerce and relevant units to reconsider the idea to cut the rice mortgage price down from the current rate of 15,000 baht per ton to only 12,000-13,500 baht before submitting it for consideration again.


-- NNT 2013-06-19

[Robby nz]

Bags of rice were found stacked up over 10 meters high in the Marketing Organization for Farmers' warehouse in Phanomsarakham district. The Governor said after the inspection that most of the rice was still of good quality, and the only flaw was that some of the rice bags had not been tidily stored. The warehouse was also found to be up to standard, with adequate ventilation and no leaks.

How about in the middle of the heap mate where you cant see.

The outside bags would be pretty good because they do have ventilation but in the guts with all the weight pressing down there is likely to be a lot of heat build up and rot going on.

If you want a true assessment try digging down.

Hay Ms PM if its so wonderful why lower the price?

[whybother]

“It is a losing scheme in terms of accounting but, in reality, farmers take the benefit. It’s in accord with the government’s policy,” she said.

How much of that 136bn has gone to the farmers, and how much to the millers and warehouses?

[chooka]

The whole thing has been a debacle, what more can be said?

[jaltsc]

Ignore the man behind the curtain. The Great Oz has spoken.

[bubblegum]

“If there are problems at stockpiles, rice mill operators will have to compensate,” she said. “

As far as I know mill operators are going out of business because they are not allowed to operate.

[Thai at Heart]

Bags of rice were found stacked up over 10 meters high in the Marketing Organization for Farmers' warehouse in Phanomsarakham district. The Governor said after the inspection that most of the rice was still of good quality, and the only flaw was that some of the rice bags had not been tidily stored. The warehouse was also found to be up to standard, with adequate ventilation and no leaks.

How about in the middle of the heap mate where you cant see.

The outside bags would be pretty good because they do have ventilation but in the guts with all the weight pressing down there is likely to be a lot of heat build up and rot going on.

If you want a true assessment try digging down.

Hay Ms PM if its so wonderful why lower the price?

I feel so warm and fuzzy about how well this programming is going. If it's so good, maybe they should put the price up....

[NongKhaiKid]

A couple of weeks ago she was saying the scheme had " enriched " the lives of rice farmers so she was partly correct as some people have certainly been enriched and it's not the farmers.

She's happy that rice growth has been stimulated which is wonderful considering the government is buying at a massive loss and leaving the product to rot as it can't be sold.

[rametindallas]

When this scheme eventually ends, and it will, and the government has upwards or 40 million tons of rice in storage, who will buy the farmers' new rice? With the government competing with the farmer for the market, where will the farmer sell his rice? I don't think the thought their cunning plan all the way through which is typical of government schemes.

[Ricardo]

If only 40% of the benefit reaches the farmers, and the scheme is funded by everyone who consumes rice or pays tax here, is it really a wise investment, and is it really a good idea to continue this for several years, as commanded by the absent thinker ?

And "there was also unaccounted rice stock of around three million tons", Whoopsie !

No wonder there were rumours of a quickie-election, to lock-in another 4 years, before news of this (and the 10%-20% pledging-price cut) leaks out !

Edited June 19, 2013 by Ricardo

[iancnx]

Here we go again, might be better if all rice scam threads could be merged into one. Have commented on this until we are blue in the face!

[AleG]

PM: Rice pledge scheme a boon to economy, farmers

Meanwhile in the real world, the expected growth for the economy has been revised one percentage down for the year and farmers debts have risen.

Also since the high prices of rice have been such a good thing the PTP government is planning on reducing the amount they (putatively) pay from 15.000 to 12.000 Baht per ton.

One, being rather cynical, would get the impression that our immaculate premier is either out of touch with reality or lying her face off.

In any case it's amazing how a-booming the economy can get when you borrow mountains of money, I should try it myself! I'll go to the bank, borrow a few million and blow them on luxury items, the neighbours would be so impressed by my new wealth.

What you say? I have to pay back the money, with interest? surely not!

[bigbamboo]

If the PM gets quizzed by the media on this statement I hope she's got some sensible shoes on to make a quick getaway !

[GentlemanJim]

I really think she believes what she is saying when she reads the speeches laid down in front of her. She does not have a frakking clue about what is going on.

[Neilly]

PM: Rice pledge scheme a boon to economy, farmers

One, being rather cynical, would get the impression that our immaculate premier is either out of touch with reality or lying her face off.

[Tatsujin]

She talks such a load of crap.

If they wanted to help the farmers, scrap the scheme and simply split the 260 Billion between the farmers. That would have benefitted them far more.

[hellodolly]

First she justifies it with

"“It is a losing scheme in terms of accounting but, in reality, farmers take the benefit. It’s in accord with the government’s policy,” she said."

Then she goes on to say

"Ms Yingluck said the National Rice Policy Committee (NRPC) has yet to give a concrete proposal on lowering the pledging price from Bt15,000 per tonne."

First she justifies it and in the same speech talks about lowering it.

Where does she think she is Mongolia.

[OzMick]

"Yingluck Shinawatra insisted today that the government's rice pledging scheme......... has stimulated ....... farmers’ cultivation of rice."

Which the government has guaranteed to buy at above market price, and which they now can't sell. does she think this is commendable?

While she claims the huge losses are in line with government policy, the results are nebulous. How much better would it be to have tangible infrastructure improvements the government could point to and say "We did that."

Certainly better than saying that the country needs huge infrastructure improvements, but we'll need to borrow trillions.

[rubl]

"The Governor said after the inspection that most of the rice was still of good quality"

Please, can someone define what a governor means when saying 'most'?

[AleG]

"The Governor said after the inspection that most of the rice was still of good quality"

Please, can someone define what a governor means when saying 'most'?

50% plus one grain of rice.

[moe666]

These storage places stink to high heaven, on my bike trips have ridden past many and the smell is unbelieveable

[rubl]

"It is a losing scheme in terms of accounting but, in reality, farmers take the benefit. Its in accord with the governments policy, she said."

So, if we just forget about proper accounting for a moment, where has the THB 352 billion for 21.7m tonnes of rice gone to?

PS has Ms. Yingluck really been the President of a large company before?

[pedro01]

Didn't land rents go up when this scheme was introduced?

Will they now go down?

[TomTao]

Whatever you do, do not admit this scheme is a massive loss and an ever increasing burdon to the economy, just take a negative, give it to the spin doctors, and let them turn straw into gold, and there you have it, a negative just became a positive. Not too sure where all the gold is going, but someone's benefitting.

[webfact]

Rice pledging price slashed to Bt12,000 per tonne
By English News

BANGKOK, June 19 – Thailand's National Rice Policy Committee (NRPC) has cut the pledging price for paddy from Bt15,000 per tonne to Bt12,000 per tonne, effective June 30, and set the subsidy ceiling at Bt100 billion a year, according to Commerce Minister Boonsong Teriyapirom.

He said farmers can sell their paddy for a maximum Bt500,000 per household, beginning tomorrow, adding that the government will allow losses from the rice pledging scheme at not more than Bt100 billion a year.

The stricter measure was imposed after official figures showed Bt136 billion in losses from the Commerce Ministry’s paddy purchase from farmers in the 2011/2012 harvest season, he said.

Mr Boonsong said a survey by the Agriculture and Agricultural Cooperatives Ministry found rice planting costs at Bt8,000 per tonne while farmers will make almost 40 per cent profit after selling paddy at Bt12,000 per tonne.

The NRPC also assigned the commerce, agriculture and agricultural cooperatives and finance ministries to jointly find ways to reduce operating costs for the pledging scheme while pledging price for the next harvest season has yet to be fixed, he said.

About 10 million tonnes of paddy will be purchased from this year’s second harvest, between April 1 and October 31.

The Thai Farmers Association, meanwhile, called on the NRPC to review its decision and asked the government to continue the rice pledging scheme for the next five years.

Vichien Puanglamchiak, association chairman, said farmers will submit a letter of protest to the government and may organise a demonstration if the government stands firm on reducing the pledging rice. (MCOT online news)


-- TNA 2013-06-19

[GentlemanJim]

"It is a losing scheme in terms of accounting......but"

Moody's will be replacing keyboards all over the office this morning with that line.

Rice warehouse found up to standard, after rumors of rotting rice

Sounds a bit like how they conveniently stumbled upon the only market stall selling produce below the national average when they were trying to show that prices have not gone up.

[yoshiwara]

'Reports circulated earlier alleged that the rice kept in the warehouse was rotting and emitting foul smell.'

Attempting to control the stink a little now.

[Ricardo]

This 20% price-cut will be, if true as reported, a massive U-turn and loss-of-face for former-PM Thaksin and PTP.

But why did he let his sister defend the scheme, right up to the point, where it was effectively abandoned ?

I'm not sure that I believe the above comments attributed to the Commerce Minister.

Edited June 19, 2013 by Ricardo