Thailand cuts rice-buying subsidy after big losses

[Skywalker69]

IMPORTANT

I am unsure where to put this info so have opted for the current rice thread. We just a had a call from a close family friend who works in the food industry. He has just said that whatever you do, do not buy any cheap Thai white rice. There will be lots coming on sale soon at low prices. The brand/packaging belongs to one of the biggest food brands in Thailand and it will be sold in supermarkets that I am not willing to name either. You are clever enough to know and work it out when you see it. We are told on 100% reliable info that they are taking a lot of the old rice and washing it in formalin to make it look white again. Eat at your peril, you have been warned.

Thank you for that important info.

[kotsak]

IMPORTANT

I am unsure where to put this info so have opted for the current rice thread. We just a had a call from a close family friend who works in the food industry. He has just said that whatever you do, do not buy any cheap Thai white rice. There will be lots coming on sale soon at low prices. The brand/packaging belongs to one of the biggest food brands in Thailand and it will be sold in supermarkets that I am not willing to name either. You are clever enough to know and work it out when you see it. We are told on 100% reliable info that they are taking a lot of the old rice and washing it in formalin to make it look white again. Eat at your peril, you have been warned.

Thank you for that important info.

I am wondering about the quality of rice used by the various food stalls..

[Theoutsider]

Cutting paddy pledging price fails to end losses

By English News

BANGKOK, June 20 The governments decision to lower the pledging price of paddy to Bt12,000 per tonne will minimise losses from the subsidy scheme but the new stock will add a blow to the remaining stockpiles from the two previous harvest seasons which have yet to be sold to buyers, a senior official said.

Supa Piyajitti, deputy permanent secretary for finance, said the additional purchase from the 2013/2014 harvest season will add to the stockpiles from the 2011/2012 and 2012/2013 crops.

If that is the case, the announced losses of Bt130 billion for the first harvest season will be higher, she said.

The National Rice Policy Committee on Tuesday decided to reduce the pledging price of paddy from Bt15,000 per tonne to Bt12,000 per tonne, hoping to quell widespread criticisms against the controversial rice pledging programme.

Ms Supa said warehouse inspection officials will be requested to hold a one-day simultaneous check at 1,500 rice mills under the rice pledging scheme to prevent grain transport from one rice mill to another.

The Commerce Ministry informed the Finance Ministry that 2.9 million tonnes of rice were missing from an official survey a volume which Ms Supa described as impossible.

This is a huge amount which is significant in terms of accounting and it must be sorted out, she said. (MCOT online news)

-- TNA 2013-06-20

"to prevent grain transport from one rice mill to another"

Sly one.

[Harry2]

Such negativity...

Look at the bright side, wouldn't you? Those storing the ever increasing mountains of rice will still be getting paid in full every month.

Rice mountains - could these be used for dry skiing?

[indyuk]

'Thaksin thinks, Pheua Thai does'.

Another policy by the mentor fails, another dent in his reputation. The party better come up with a few more thinkers, but from the ludicrous remarks of Chalerm and Plodprasop to the silence of the PM it's clear they haven't a clue.

An idiotic policy from the beginning. along with the first car tax reduction policy, aggravating Bangkok's traffic jams. Everybody knows there are not enough roads in Bangkok for the vehicles present, but the fools in government increase the number of vehicles.

Is it possible to be so foolish?

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

[Thai at Heart]

'Thaksin thinks, Pheua Thai does'.

Another policy by the mentor fails, another dent in his reputation. The party better come up with a few more thinkers, but from the ludicrous remarks of Chalerm and Plodprasop to the silence of the PM it's clear they haven't a clue.

An idiotic policy from the beginning. along with the first car tax reduction policy, aggravating Bangkok's traffic jams. Everybody knows there are not enough roads in Bangkok for the vehicles present, but the fools in government increase the number of vehicles.

Is it possible to be so foolish?

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

That would lose an election.

How big will the mountain be in another 2 years?

[steveromagnino]

'Thaksin thinks, Pheua Thai does'.

Is it possible to be so foolish?

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

Rice pledging has been a TRT/PPP/PT mainstay policy since around the time of their first election, when pledging became a political tool to handle farmers. It has been around since 1990. It is hardly "experimental, transitional". As to the objectives, perhaps you can enlighten us. What objectives? To lose a massive amount of money? Yes. To deprive the world of a major source of food and instead let it rot? Yes. To bribe rural voters and further addict them to handouts and encourage them to grow lower grade (not higher grade rice)? Yes.

For those interested.....

Amounts pledged pre TRT were around <1,000,000 tons. In 2001 this rose as follows: (1000 tons), each period is previous year end onto the marked year

pre 2001 <1000

2001 2,076 (8% of total production)

2002 6,091 (20%+ of total production)

2003 5,584

2004 2,502

2005 6,093

2006 7,466

2007 3,445 (11% of total production)

2008 4,368

2009/10 10,680 (33% of total production)

As for those wishing to know about the pledging scheme I suggest you first read this before posting any further - it clearly explains the scheme since it started in 1990 approx

http://d-arch.ide.go.jp/idedp/SPT/SPT003200_006.pdf

For the period 2004-6, it was estimated pledging cost the government in simple direct terms, a loss of around 18 billion baht; again a simple transfer of money from the tax payers, to the rice millers, a little to farmers, and a lot to middle men. Now we are losing around 10X that amount per year.

The amount of rice being pledged now is something like 20,000 (if we carried along the chart from above until now).

IndyUK I am still awaiting your response of whether the Shinawatras are, as you described it, victimised. For anyone interested in IndyUK's inability/unwillingness to respond, feel free to see his question posted to me, and my response here (also another thread where IndyUK as, presumably, not a taxpayer in Thailand, continues to defend the conduct of one of Thailand's richest families who tripled their wealth during the TRT PM era, and yet according to IndyUK are victims in this case, regarding the BTS/MRT concessions...., what was it you said again? ah that's right.

IndyUK says:

"Meawhile many of us simpathise with the Shinawatra family in recognition of the apaling treatment they have faced at the hand of coups makers and the Justice (sic) system, the Abhisit mob and other law breakers."

http://www.thaivisa.com/forum/topic/645992-prosecutors-to-decide-on-bangkok-bts-skytrain-case/

Good fun talking with you.

[Thai at Heart]

Actually the phrasing says it all. It's not a sale to the government, it's a pledge, a promise, an exchange of trust to be repaid.

Let's see how they go breaking the pledge....

[whybother]

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

Do you ever get anything right?

[rubl]

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

Do you ever get anything right?

Somehow our fellow poster seems to have missed the Bloomberg's interview in September last year when k. Thaksin said the scheme worked well, was profitable and should be continued for a few more years.

With 136 billion lost on 352 billion expenditure from the 2011/2012 period only I'm wondering though what our member thinks the objectives achieved are

[steveromagnino]

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

Do you ever get anything right?

that's a bit harsh. It is true that there is a lot of fuss, however one can assume that IndyUK is not a Thai tax payer, and therefore probably is quite happy to recommend that the government keep spending our money on pointless tasks.

[Tatsujin]

'Thaksin thinks, Pheua Thai does'.

Another policy by the mentor fails, another dent in his reputation. The party better come up with a few more thinkers, but from the ludicrous remarks of Chalerm and Plodprasop to the silence of the PM it's clear they haven't a clue.

An idiotic policy from the beginning. along with the first car tax reduction policy, aggravating Bangkok's traffic jams. Everybody knows there are not enough roads in Bangkok for the vehicles present, but the fools in government increase the number of vehicles.

Is it possible to be so foolish?

A lot of fuss over nothing. The Rice Pledging policy is an experimental or transitional policy depending on the two year outcome which will presumably be known by the second or third quarter of year three. Thus far the policy has achieved some of it's objectives. Can't stop it now.

Seriously? We already know the outcomes of the 1st and 2nd years . . . a complete and utter waste of taxpayers money. No need to wait any longer, it should be scrapped now.