Rice price cut hits govt hard

[Lite Beer]

Rice price cut hits govt hard
The Nation on Sunday

BANGKOK: -- Polls point to sharp decline in support, with the Abhisit administration seen as better

The latest public opinion polls reveal growing discontent against the government, especially after it reduced the rice pledging price.

The results of three opinion surveys released yesterday showed that the public was not happy with the government's decision to lower the rice pledging price from Bt15,000 to Bt12,000 per tonne and limit the money paid to each farmer at up to Bt500,000, with effect from June 30.

Meanwhile, a separate survey by Assumption University's Abac Poll found that more respondents said the previous Democrat-led government had performed better than the current Pheu Thai-led one.

Regarding the cost of living, 58.9 per cent of respondents said they were satisfied with the Abhisit Vejjajiva government, compared to 41.1 per cent for the Yingluck Shinawatra government. For tackling the economic problems, the Abhisit government scored 60.4 per cent against 39.6 per cent by the current administration. The previous government was also way ahead in quality of life, with 61.8 per cent against 38.2 per cent. It also got higher scores over the current administration in the areas of solving traffic problems, access to people, national unity, and democracy.

The current administration fared better in the areas of fighting crime and drugs (58.4 per cent against 41.6) and quality of education (54.8 against 45.2).

The Abac Poll survey was conducted among 2,017 people in 17 provinces across all regions between June 11 and yesterday.

The National Institute of Development Administration (NIDA) yesterday released results from a poll of 1,248 people nationwide from Wednesday to Friday about the government decision to slash the pledging price. More than half (59.62 per cent) disagreed because they sympathised with the farmers whose income would shrink while rice production costs (fertiliser, fuel and labour wage) were on the rise and this could cause them to be in debt, the poll said. They urged the government to tackle corruption in the rice-pledging scheme.

Most respondents (54.17 per cent) said the price cut would hit Pheu Thai Party's popularity among farmers.

Suan Dusit Poll echoed similar views in its poll of 1,310 people nationwide from Wednesday to yesterday. About 59 per cent disagreed with such a price reduction, while 25.19 per cent said otherwise claiming the Bt15,000 price was too high and a burden on the government while 15.65 per cent were uncertain and urged the government to consider factors including farmers' invested costs and the world economic condition. As for the limit imposed on each farmer, 42.75 per cent agreed as it would help the government better rein in spending whilst 35.11 per cent said the problem came from the government's mismanagement hence it should not affect farmers.

The respondents also rated the possible solutions as follows: punishing corrupt people in the rice-pledging procedure 29.96 per cent, finding measures to aid affected farmers 23.82 per cent; the government visiting the farms and explaining reasons to the farmers in detail 20.94 per cent; controlling production cost and providing water supplies 17.68 per cent; and finding markets to sell the rice in the stockpile because rice grains could get damaged 7.60 per cent.

Bangkok Poll's recent survey of 1,234 people found that Prime Minister Yingluck Shinawatra's popularity had gone down from 51.2 per cent last November to be 40.4 per cent, while her ruling party's popularity was also lower by 7.8 per cent to 41 per cent after the government's rice-pledging project suffered a big loss. While 55.4 per cent expected Yingluck to complete her term in office, some 45 per cent suggested that Yingluck shuffle her Cabinet.

Meanwhile, the prime minister said her Cabinet had cut the rice pledging price in order to maintain financial and monetary discipline but insisted that the price could be adjusted if the world price of rice increases.

Farmers have threatened to storm Government House next week after the Yingluck Cabinet resolved to cut the rice pledging price from Bt15,000 per tonne to Bt12,000 per tonne.

-- The Nation 2013-06-23

[NongKhaiKid]

PM Yingluck has proved she knows nothing about this scheme, or anything else for that matter, but it didn't stop her making a statement on Sat 23rd that the government would keep on with the scheme in a " sustainable " way !

No doubt the comment was prepared for her and was the usual nonsense the country has become used to because just how can this ever be sustainable ? Have they miraculously found buyers for the rice mountain much of which is rotting minute by minute and who will continue to buy future production ?

Will they be able to reduce the pledging to a level at which losses are manageable and the farmers will happily accept ? I think not.

This issue is very much in the spotlight and isn't going away especially as discontent is spreading amongst farmers and MPs. Other protests are increasing too and the the only response the government seems capable of is making stupid, usually contradictory, statements which they expect to be accepted without question coupled with not to subtle threats against those who dare oppose them.

[MaxLee]

Rice price cut hits govt the taxpayers and rice farmer the hardest

The government has nothing to lose there. They benefit from all the additional subsidiary from trillion kachillian of brown enveloped delivered under the table

[Lite Beer]

Rice price to move along with market prices: PM
The Nation

Prime Minister Yingluck Shinawatra

BANGKOK: -- Prime Minister Yingluck Shinawatra yesterday hinted at the possibility of an increase in the rice-pledging price, as the government is facing pressure from farmers.

The National Rice Policy Committee last week agreed to revise down the pledging price from Bt15,000 to Bt12,000 per tonne for the output in the 2012/2013 harvest year, apparently to stem the huge losses.

In her weekly broadcasting programme, Yingluck said that it is the government’s responsibility to strike a balance between farmers’ benefits and fiscal disciplines. She said that the programme needs to be aligned with global condition to some extent. The lower price is in line with the falling prices in rice from neighbouring countries, she said. Yet, there is a possibility that the price would be adjusted higher in line with global prices. Meanwhile, she insisted that her government has upheld financial disciplines.

The revision of the pledging price followed a leaked report that the government may have lost upto Bt260 billion from the scheme in the 2012/2013 harvest year. The government later claimed that the figure was inaccurate. The exact figure will however be revealed after a pending investigation.

The Commerce Ministry will kick off warehouse inspection on June 29. The task, to monitor rice quality at mills participating the government’s scheme, would be assisted by provincial police. The public is invited to call 1569, should they find any irregular shipments of rice before the day.

The Pheu Thai government will convene on Monday and one of the discussion topics is the rice-pledging scheme.

-- The Nation 2013-06-23

[Ricardo]

The farmers are unhappy, join the line, behind all those paying higher-prices for their staple-food, or eating cheaper smuggled Cambodian-rice !

And they're going too make their feelings known ? Cue warnings from DPM-Chalerm, from his 'secret sources of information', about the possibility of any anti-government demonstrations being bombed !

Yay for Red-Popularity !

[Thai at Heart]

Rice price to move along with market prices: PM

The Nation

Prime Minister Yingluck Shinawatra

BANGKOK: -- Prime Minister Yingluck Shinawatra yesterday hinted at the possibility of an increase in the rice-pledging price, as the government is facing pressure from farmers.

The National Rice Policy Committee last week agreed to revise down the pledging price from Bt15,000 to Bt12,000 per tonne for the output in the 2012/2013 harvest year, apparently to stem the huge losses.

In her weekly broadcasting programme, Yingluck said that it is the governments responsibility to strike a balance between farmers benefits and fiscal disciplines. She said that the programme needs to be aligned with global condition to some extent. The lower price is in line with the falling prices in rice from neighbouring countries, she said. Yet, there is a possibility that the price would be adjusted higher in line with global prices. Meanwhile, she insisted that her government has upheld financial disciplines.

The revision of the pledging price followed a leaked report that the government may have lost upto Bt260 billion from the scheme in the 2012/2013 harvest year. The government later claimed that the figure was inaccurate. The exact figure will however be revealed after a pending investigation.

The Commerce Ministry will kick off warehouse inspection on June 29. The task, to monitor rice quality at mills participating the governments scheme, would be assisted by provincial police. The public is invited to call 1569, should they find any irregular shipments of rice before the day.

The Pheu Thai government will convene on Monday and one of the discussion topics is the rice-pledging scheme.

-- The Nation 2013-06-23

She looks like she vomited a little in the back of her throat, making this speech.

[Robby nz]

I see a headline in the WSJ of 5 days back.

Thai Rice Aid Under Fire ... Thailand's Public Warehousing Organization says it costs 300 million baht per month, or around $10 million, to keep........

You have to subscribe to read the rest but I think we can all guess what comes next.

[Thait Spot]

Fiscal discipline is pouring hundreds of billions of taxpayer baht and tens of millions of tonnes of rice into the toilet?

Hahahahaha

[A Member]

Yingluck has hinted the rice pledging price may increase but to many a farmer this will equate to a promise because that's what they want to hear.

There will be no overnight miracle that will see rice sales go through the roof so this hint / promise is going to fall flat and will add to the farmers's discontent and see more self-inflicted problems for the government.

[jaidam]

Flip-flopping for govt stability.

[rubl]

And still no information to what the THB 136 billion on 352 billion expenditure is lost. Only in billions 352 spent, 59 sold, 156 remaining and therefor 136 lost over 2011/2012 seasons only.

[Lite Beer]

Most people believe rice-pledging scheme plagued with corruption: survey

BANGKOK: -- An opinion survey has found that more than 80 per cent of respondents believe the rice-pledging scheme was plagued with corruption.

The survey was carried out by Assumption University's Abac Poll among 1,432 residents of 17 provinces from June 19 to 22. The respondents are at least 18 years old.

The survey found that 81.2 per cent of the respondents believe the scheme was plagued with corruption while 18.8 per cent believe it was corruption-free.

But 65.1 per cent replied that it was not right for the government to reduce the rice price from Bt15,000 to Bt12,000 per tonne while the 34.9 per cent said it was a right decision.

-- The Nation 2013-06-23

[mikemac]

"The revision of the pledging price followed a leaked report that the government may have lost upto Bt260 billion from the scheme in the 2012/2013 harvest year."..............

And if the report had not been "leaked" what would have been the reaction from the PTP ?

This is going to cost Thaksin his fortune, as he will have to pay his goons in red shirts a lot more than 500 bt a day to have a bigger rent-a-crowd than the rice farmers when they start protesting in Bangkok. I hope they blockade all roads leading to Yingluck's headquarters using buffalos and carts. Karma !

[whybother]

An interesting graph on the global price of rice.

http://www.indexmundi.com/commodities/?commodity=rice&months=60&currency=thb

The rice price now is about the same as it was when PTP came in to power.

[Stradavarius37]

If that damned army will allow them too, PTP will eventually hang themselves by their own accord. No need for a coup.

[OzMick]

When a difficult choice has to be made, you can always rely on PTP to take the worst option.

By reducing the payout on the scam, they have enraged farmers. OTOH the scam continues as PTP policy, and will continue to accrue huge debts for overpayment, storage costs and depreciation, but at a slightly lower rate. So who is happy?

BTW talking to friends in the area, reports that farmers in the KK/Kalasin area were already switching away from rice to mung (a starchy root crop) due to many factors including lack of rain.

[mikemac]

@ Stradavarius37 - there will be a coup, but the army won't be involved. Sooner or later the evil and wicked ways of this puppet government will be too much for the Thai people to tolerate. Like you said, give them enough rope...........................

[belg]

if a farmer really can earn up to 500.000 baht... why complain about the poor farmer...that is a very good income

problem is not the farmer but the miller getting rich

and produce should be paid what it is worth, not subsidise with tax payers money

HM the King had a great plan so many years ago, to be self suffiecient, aka... not depending on tax payers money or others

so why stop that great inniciative ?

[whybother]

if a farmer really can earn up to 500.000 baht... why complain about the poor farmer...that is a very good income

problem is not the farmer but the miller getting rich

and produce should be paid what it is worth, not subsidise with tax payers money

HM the King had a great plan so many years ago, to be self suffiecient, aka... not depending on tax payers money or others

so why stop that great inniciative ?

What are the costs to earn that 500K baht?

[moe666]

Not one red supporter defending the undefendable, I guess the truth is mightier than all of the propaganda that was being spread here over the last 2 years.

[hellodolly]

Yingluck has hinted the rice pledging price may increase but to many a farmer this will equate to a promise because that's what they want to hear.

There will be no overnight miracle that will see rice sales go through the roof so this hint / promise is going to fall flat and will add to the farmers's discontent and see more self-inflicted problems for the government.

I may be wrong but will the rice sales really be that much better. It has become common knowledge that rice from Thailand can be up to 20% inedible. They will have to get rid of that first before Thailand can regain respect for it's rice.

I really liked the polls taken showing the Thai people seeing through the PTP and how much better the Dems were.

The only problem was they were Thai polls.

Thailand the hub of polls that say what ever you want them to say.

[allan michaud]

"The Commerce Ministry will kick off warehouse inspection on June 29. The task, to monitor rice quality at mills participating the government’s scheme, would be assisted by provincial police."

Thai government announces "National Brown Envelope Day" will be held on 29th June.

"The public is invited to call 1569, should they find any irregular shipments of rice before the day."

Thai government announces "National Suicide Hotline", for anyone insane enough to report a corrupt official, they should call 1569.

[Roadman]

The Thaksin incompetents should stop payment via other parties and pay direct to the farmer as even at the lower rate some will then be getting more. Oh wait the Democrats were doing that which was so logical if you are going to have dependency tariffs at all. Yet more good news for the fugitive Thai peoples court convicted criminal

[Roadman]

Poor sweetie...almost want to give her a hug...she's looking a bit tired...nahhh...burpppp...get me another doughnut Bart

Edited June 23, 2013 by Roadman

[jaidam]

Poor sweetie...almost want to give her a hug...nahhh...get me a doughnut Bart

Last time I saw eyes like that, there was a subsequent thump on the bumper and venison for a week.

[apetley]

if a farmer really can earn up to 500.000 baht... why complain about the poor farmer...that is a very good income

 

problem is not the farmer but the miller getting rich

 

 

and produce should be paid what it is worth, not subsidise with tax payers money

 

HM the King had a great plan so many years ago, to be self suffiecient, aka... not depending on tax payers money or others

 

so why stop that great inniciative ?

The self sufficiency ideal is a great idea but totally unworkable because the vast majority of people do not own land or enough land to implement it.

Sent from my GT-I9003 using Thaivisa Connect Thailand mobile app

[robertson468]

Flip-flopping for govt stability.

Did you not know that this is now the mandatory footwear for all Government Ministers? Flip-flop, flip-flop, flip-flop is that the PM walking down the corridor?

[Lite Beer]

Explanation for the Government’s Rice Pledging Price Reduction

In explanation of the Government’s decision to cut the rice pledging price, Prime Minister Yingluck Shinawatra said that the price reduction was aimed at creating economic balance in several dimensions.

In the weekly program “Yingluck Government Meets the People” on 22 June 2013, the Prime Minister referred to the Government’s rice-pledging scheme and its decision to cut the pledging price from 15,000 baht to 12,000 baht per metric tonne, starting from 30 June 2013 onwards.

She said that the concept for the scheme came about before the Government took office, as her political party had conducted a study on how to ease poverty among the people, especially farmers. The study indicated that agricultural zoning would help ease poverty among farmers in the long run. This means that certain crops should be planted in appropriated areas for higher yields with lower costs. As for an immediate solution, the Government came up with the rice-pledging scheme to help farmers facing low-priced rice. The scheme, which aims to shore up rice prices, was included in the Government’s urgent policies to be implemented in the first year of its administration.

The Prime Minister pointed out that, apart from enabling farmers to receive fair prices, the rice-pledging scheme is also intended to improve farmers’ quality of life and ease the problem of non-conventional debts. She said that the scheme had given a boost to the local economy, as shown in the figures quoted by the Office of the National Economic and Social Development Board.

However, she said, the decision to slash the pledging price was based on the global increase in rice supply, especially from Thailand’s neighboring countries, and the stronger baht. Moreover, the Government needs to maintain fiscal discipline and create several dimensions of economic balance. This would create confidence among investors, as well.

Taking into consideration global prices and fiscal discipline, the National Rice Policy Committee proposed the pledging price reduction. The Prime Minister stated that when the global rice prices increased, the pledging price under the rice-pledging scheme would be adjusted higher.

She also touched on the issue of adding value to Thai rice, saying that farmers should pay greater attention to planting rice of high quality to fletch better prices. The Prime Minister said that organic rice is now in great demand in Europe. Other economic crops, such as tapioca and sugar cane, could be produced into energy sources, which are also in great demand. The Ministry of Agriculture and Cooperatives would offer suggestions on other alternatives for farmers, so that they would receive good prices under the agricultural zoning program.

She urged provincial governors to visit local residents in their respective areas to listen to their grievances and provide them with better understanding about the issue.
Meanwhile, Minister to the Prime Minister’s Office Varathep Ratanakorn revealed that the Government posted losses of 136 billion baht from the rice-pledging scheme during its first year. The calculation of the amount was based on the market price on the closing date of 31 January 2013.

Foreign Office, The Government Public Relations Department, Office of the Prime Minister

[EyesWideOpen]

There is no finer way to make a person angry, than to give them something for free that they really like, and then take it away. It is a bit ironic, as the people who really creamed off the majority of this money were NOT farmers...

But I guess the middle men complaining would look pretty silly. :-)

[hellodolly]

Rice price to move along with market prices: PM

The Nation

Prime Minister Yingluck Shinawatra

BANGKOK: -- Prime Minister Yingluck Shinawatra yesterday hinted at the possibility of an increase in the rice-pledging price, as the government is facing pressure from farmers.

The National Rice Policy Committee last week agreed to revise down the pledging price from Bt15,000 to Bt12,000 per tonne for the output in the 2012/2013 harvest year, apparently to stem the huge losses.

In her weekly broadcasting programme, Yingluck said that it is the governments responsibility to strike a balance between farmers benefits and fiscal disciplines. She said that the programme needs to be aligned with global condition to some extent. The lower price is in line with the falling prices in rice from neighbouring countries, she said. Yet, there is a possibility that the price would be adjusted higher in line with global prices. Meanwhile, she insisted that her government has upheld financial disciplines.

The revision of the pledging price followed a leaked report that the government may have lost upto Bt260 billion from the scheme in the 2012/2013 harvest year. The government later claimed that the figure was inaccurate. The exact figure will however be revealed after a pending investigation.

The Commerce Ministry will kick off warehouse inspection on June 29. The task, to monitor rice quality at mills participating the governments scheme, would be assisted by provincial police. The public is invited to call 1569, should they find any irregular shipments of rice before the day.

The Pheu Thai government will convene on Monday and one of the discussion topics is the rice-pledging scheme.

-- The Nation 2013-06-23

She looks like she vomited a little in the back of her throat, making this speech.

She looks like she could use some of Chalerm's ear medicine.

Lets face it raising rice prices to ridicules heights and having two years later bring them back into the land of reality is a bitter pill to swallow.

She said

"This means that certain crops should be planted in appropriated areas for higher yields with lower costs."

How does that account for raising the price. I would have thought that if followed through on it would have made the rice cheaper.

Then she goes on to say

"However, she said, the decision to slash the pledging price was based on the global increase in rice supply,"

Could that have any thing to do with Thailand raising the prices so high all they could do was store it?

Edited June 23, 2013 by hellodolly