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

[rubl]

"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."

So, previously farmers made almost 75 - 85% profit after selling at 15,000? Surely there are no poor farmers left.

BTW MoC Boonsong Teriyapirom to set up an impartial surveying panel to check rice stockpiles at all warehouses and urgently report back to the government. Probably to get a better idea of what THB 156 billion remaining of the 2011/2012 pledged stock means in size of mountain.

[Thaddeus]

Wasn't there an article the other day about her remaining silent was a bad thing?

Proved that one wrong.

Actually no, it hasn't, it just proves it isn't the worst thing.

Edited June 19, 2013 by Thaddeus

[longway]

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....

I concur, in fact I can't contemplate this scheme for too long otherwise my head will just explode from its sheer awesomeness.

[rubl]

Thai Rice Exporters help government, accept lower price:

"2013-06-18 Thailand Rice Sellers Lower Most of Their Quotes; Other Asia Rice Quotes Unchanged"
http://www.oryza.com/content/thailand-rice-sellers-lower-most-their-quotes-other-asia-rice-quotes-unchanged-0

[scorecard]

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.

I wonder if they got Skype approval for the price reduction?

[drdoom6996]

Anything they (PTP) do is not impartial.

[Thai at Heart]

"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'?

Most.

Any more detail would cause problems.

[Anon999]

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

Maybe it would not have been too difficult to stack good bags of rice from around the outside? However, you can only see what you can see.

[whybother]

"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'?

48%

[waza]

At last Thaksin has spoken, (through his puppet) rice scam good for everyone, but he concedes we must reduce the overheads and losses by reducing the price paid to farmers. However, the only ones they are deluding are themselves and their die hard supporters.

Edited June 19, 2013 by waza

[Baerboxer]

What nonsense. The script writers produce this for the masses, who don't understand economics or accounting. But, the nice PM who promises them extras and improvements says it's ok - and she wouldn't lie would she, having taken an oath and all that.

I doubt Yingluck has a clue what's going on, other than some people tell her the scheme's great and makes them lots of money (bet she doesn't hear this from many still poor farmers). This scheme was put in place to con many and enrich few - and it appears to have worked.

Coming up with trash statements like this won't fool or impress Moody's or the international financial community.

PTP like to pretend they are some kind of Robin Hood - taking from the rich and giving to the poor. Only it seems to get stuck somewhere before it gets to the poor. Will people ever wake up to this?

[bander]

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.

You mean the speeches written by the man i Dubai?

[notmyself]

I'm glad to hear it but I doubt the farmers will.

[aguy30]

They never say which grades the pledge prices apply to. The price of Thai Hom Mali Grade A is more than twice the Hom Mali Broken A1 Super. There isn't any indication in the news release as to what the price of Hom Mali will be or if it will even change.

Current market prices: http://www.thairiceexporters.or.th/price_eng.html

statistics: http://www.thairiceexporters.or.th/List_%20of_statistic.htm

2012 wasn't a very good year for exports

2012 exports: http://www.thairiceexporters.or.th/statistic_2012.html

5 million metric tons white rice 88 billion baht (only 60% of 2011 exports)

1.9 million tons Hom Mali 57 billion baht (only 82% of 2011 exports)

2011 exports http://www.thairiceexporters.or.th/statistic_2011.html

8.3 million tons white rice 131 billion baht

2.3 million metric tons Hom Mali 59.6 billion baht

Edited June 19, 2013 by aguy30

[aguy30]

"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'?

That's easy:

Most of the remaining rice that isn't already spoiled is still of good quality.

Edited June 19, 2013 by aguy30

[smedly]

a boost for GDP ???????

still trying to get my head round that one - maybe GDP has a different meaning to PTP - GooD for my Pocket

[MaxLee]

PM:

Dear people in Thailand, Our rice pledging scheme is a losing scheme in terms of accounting but, in reality, farmers take the benefit. Its in accord with the governments policy, have a nice day, bye bye...

That makes any Barbie doll look like Einstein genius...

[SICHONSTEVE]

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

Somebody please force Yingluck to close this b***** stupid scheme down and then tell her to pack her bags and put someone who knows what they are doing in her place that knows better. An assistant from a 7/11 somewhere will do!!!

[GentlemanJim]

a boost for GDP ???????

still trying to get my head round that one - maybe GDP has a different meaning to PTP - GooD for my Pocket

GDP does indeed have a specific meaning to PTP it means 'Getsnowherenear Democrats Pockets".

[GrantSmith]

Not too sure where all the gold is going, but someone's benefitting.

Today's gold price remains unchanged from yesterday, coincidence?

[Lite Beer]

Traders keep watchful eye on state rice subsidy
By English News

BANGKOK, June 19 – The Thai Chamber of Commerce (TCC) today set up a special body to closely monitor the government’s controversial rice pledging scheme.

TCC chairman Issara Wongkusolkit said the chamber will look into the issue to ensure that the National Rice Policy Committee (NRPC) transparently discloses all information on the rice subsidy.

The committee will be led by TCC deputy chairman Vichai Assaraskorn.

In a three-point proposal on state rice purchases, the chamber called on the government to buy rice only from the annual harvest, and not the second seasons and limit the volume bought from each farmer’s household.

The government should allocate budget to support rice farming productivity such as finding fertiliser, seed, water sources and collective farming so that farmers are self-reliant in the long run.

The TCC chairman said the government should organise zoning for rice farming to differentiate qualities of rice and encourage fair competition by allowing rice traders to join rice auctions to get the best prices.

The government has been severely criticised by the public for inflicting heavy losses of Bt136 billion in just one harvest season, on its rice pledging scheme, which has been conducted for the last three crops.

Amid mounting criticism, the NRPC decided Tuesday to slash the pledging price of paddy from Bt15,000 per tonne to Bt12,000 per tonne. (MCOT online news)

-- TNA 2013-06-19

[Lite Beer]

Democrat disagrees with rice-pledging price cut

BANGKOK: -- The Democrat Party Wednesday expressed opposition to the government's plan to slash rice pledging price from Bt15,000 to Bt12,000.

Democrat MP Atthawit Suwanphakdee, the spokesman of the Democrat shadow Cabinet, said the price slashing could contradict with the government's policy, which has been announced to Parliament.

Atthawit said the Democrat legal team would study what action should be taken against the government for violating its promise in the policy.

He said price should be reduced as agreed by the National Rice Policy Committee because farmers would be affected.

The spokesman said the government should instead come up with measures to plug corruption loopholes in the ricepledging scheme because the movement that siphons the money from farmers would remain despite the reduction of price.

-- The Nation 2013-06-19

[EvilDrSomkid]

Democrat disagrees with rice-pledging price cut

BANGKOK: -- The Democrat Party Wednesday expressed opposition to the government's plan to slash rice pledging price from Bt15,000 to Bt12,000.

Democrat MP Atthawit Suwanphakdee, the spokesman of the Democrat shadow Cabinet, said the price slashing could contradict with the government's policy, which has been announced to Parliament.

Atthawit said the Democrat legal team would study what action should be taken against the government for violating its promise in the policy.

He said price should be reduced as agreed by the National Rice Policy Committee because farmers would be affected.

The spokesman said the government should instead come up with measures to plug corruption loopholes in the ricepledging scheme because the movement that siphons the money from farmers would remain despite the reduction of price.

-- The Nation 2013-06-19

Guys, you can't have it both ways. Come on.

[khunken]

The Dems should keep their mouth shut and let the PTP wallow in its own failed rice policy.

IMO the subsidy reduction and cap (per farmer) is what should have been in place from the beginning. But the horse has bolted before shutting the stable door. The farmers' groups won't take this likely and there's always a chance of a u-turn if they mount a big enough protest.

Who knows, they might be able to sell a bit more internationally now. However there is still a lot more real facts - in contrast to the spin we've had so far - on the losses so far.

[OzMick]

The Dems should keep their mouth shut and let the PTP wallow in its own failed rice policy.

IMO the subsidy reduction and cap (per farmer) is what should have been in place from the beginning. But the horse has bolted before shutting the stable door. The farmers' groups won't take this likely and there's always a chance of a u-turn if they mount a big enough protest.

Who knows, they might be able to sell a bit more internationally now. However there is still a lot more real facts - in contrast to the spin we've had so far - on the losses so far.

If the policy's goals were as stated (increase income of poor farmers) there would have been a rent freeze incorporated. This would have stopped wealthy landowners from profiting from the scheme, but would have worked against its actual and unstated goal.

[rubl]

First year policy:

"1.11 Raise the price of agricultural products and enable farmers to gain access to sources of investment by ensuring that prices of agricultural products remain reasonably stable, reflecting global market price mechanisms, by utilizing marketing management and futures markets. Support farmers to sell their products at reasonably high prices compared to their costs. Implement a crop insurance scheme in order to provide income security for farmers, beginning with long grain rice and fragrant Hom Mali rice with moisture not exceeding 15% at 15,000 Baht and 20,000 Baht per cart, respectively. Provide remedies to farmers whose crops are damaged by natural disasters. Establish a registration system for farmer households and issue credit cards for farmers."

[slapout]

The Rice farmers already gave notice they would protest march if this cut took place, another threat was to drive tractors to Bangkok and block traffic.

Its just not been going real well for Taksin and company, even with the PR campaigns, and the table scraps that have been thrown out to the targeted voters, etc.

I would give this government/PM credit for a couple of things that they and she have often repeated, "We are doing our best" and "we have put our best people in place/positions of responsibility".....Now we are past some of the smoke and mirrors, it is apparent that the latter have been stepping on their own di.ks in this stampede, and the PM as a clone may have to admit stepping on big brothers, for him. It will be interesting to see how they intend to bring the runaways back into control.

Edited June 19, 2013 by slapout

[Cnxforever]

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.

You mean cash handouts like the Democrats did?

For doing nothing? - oops.... of course it was to secure the support of civil servants who already have good salaries and benefits most regular Thai folk can only dream about.

260 billion Baht for a country like Thailand is nothing - just take it out of the armed forces "secret budgets" and cut it off CAT (corruption added tax) the percentage they add on to every government contract and from politicians and civil servants - and give it to the farmers - at least they work hard for their money and it brings buying power to the country side - for the first time to the people who deserve it most - the people who work hard to make sure we are fed every day.

We have become so accustomed to buying things for money that we have forgotten where the things we eat come from - if you don't believe me - well just try a little money on your dinner plate tomorrow - and try to squeeze some juice out of it for a drink.

All my neighbors are farmers - simple hard working people who have been taken advantage of since forever by middle man. They deserve a break - the vicious cycle of neverending debt to plant the next crop might be broken for the first time - as they tell me for the first time they can save up some money in decades and not just struggle to survive.

Tax money - and a large part of it - has always been lost in this country to corruption under every government. Now at least some of it goes to the people who really deserve it.

Would be interesting to know of course what is going on in warehouses and rice mills - these crooks always find a way to steal. After all "educated few" have centuries of experience ripping of poor farmers.

[whybother]

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.

You mean cash handouts like the Democrats did?

For doing nothing? - oops.... of course it was to secure the support of civil servants who already have good salaries and benefits most regular Thai folk can only dream about.

260 billion Baht for a country like Thailand is nothing - just take it out of the armed forces "secret budgets" and cut it off CAT (corruption added tax) the percentage they add on to every government contract and from politicians and civil servants - and give it to the farmers - at least they work hard for their money and it brings buying power to the country side - for the first time to the people who deserve it most - the people who work hard to make sure we are fed every day.

We have become so accustomed to buying things for money that we have forgotten where the things we eat come from - if you don't believe me - well just try a little money on your dinner plate tomorrow - and try to squeeze some juice out of it for a drink.

All my neighbors are farmers - simple hard working people who have been taken advantage of since forever by middle man. They deserve a break - the vicious cycle of neverending debt to plant the next crop might be broken for the first time - as they tell me for the first time they can save up some money in decades and not just struggle to survive.

Tax money - and a large part of it - has always been lost in this country to corruption under every government. Now at least some of it goes to the people who really deserve it.

Would be interesting to know of course what is going on in warehouses and rice mills - these crooks always find a way to steal. After all "educated few" have centuries of experience ripping of poor farmers.

"All my neighbors are farmers - simple hard working people who have been taken advantage of since forever by middle man."

Has that changed under any Thaksin governments?

[MaiChai]

The government have been irresponsible with the countries finances. Surely the PM realizes the importance of fiscal discipline, especially as she was running several businesses before coming PM?