Thai farmers profits slashed by sudden cut to pledging price

[webfact]

RICE SCHEME
Farmers profits slashed by sudden cut to pledging price
Thanapat Kitjakosol
The Nation

Cash return reduced from over Bt3,300 per tonne to Bt360 a tonne, according to BioThai estimates

BANGKOK: -- The government's cut in the minimum price guaranteed under its rice pledging scheme - to Bt12,000 a tonne - will result in each farmer making a profit of only Bt360 a tonne if it takes effect on Sunday, as scheduled. That is a huge drop from the Bt3,360 profit they gained at the original price rate of Bt15,000 a tonne, according to BioThai Foundation's Withoon Luenjamroon.

The reduced profit comes mainly from higher costs, notably a rise for leasing farmland, when the controversial policy was put in effect about a year and a half ago. But it also stemmed from corruption and cheating by millers through several illegal techniques used to take advantage of the scheme and exploit the populist policy, he said.



Withoon said the change would have been acceptable to farmers if it not imposed immediately, as they could have cut investment in the current crop and may have been able to lobby for an effective anti-graft mechanism in advance. "If all information is made public and the scheme is implemented in a transparent manner, the farmers would accept it," he said.

Millers have been taking advantage of farmers via humidity deduction at rates that they set despite standard figures, he said. Other techniques, either long practised or newly conducted under the rice pledging scheme, are forging quota registration, or selling and reselling the same lots of rice, plus stealing rice from government or private custody and selling it.

There are around large-scale 5,000 millers and 10,000 of a smaller size. Some 700 of them, reportedly with ties to local and national politicians, operate pledging at 925 locations, after being permitted to take part in the scheme. "These millers are estimated to each enjoy between Bt93.66 million and Bt150.16 million, or around Bt3,278 to Bt5256 per tonne."

Burdened with higher costs already invested in the current crop and normal rises in farm expenses, farmers usually get just Bt360 per-tonne profit - a huge drop from the Bt3,360 they got under the scheme's original rate of Bt15,000, Withoon said, citing a BioThai study.

The government has decided to cut the rate to Bt12,000, and to impose a Bt500,000 limit on each farm household.

These changes are due to take effect on June 30, but heavy criticism by farmers and threats to organise a series of mass rallies in protest at the cut has forced the government to consider their demand. A final decision is expected by tomorrow.


-- The Nation 2013-06-27

[Tatsujin]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

[smedly]

time for the DSI to investigate this whole thing - there is obvious criminality involved - oh wait they only investigate what the government/TS tells them too

[barefoot1988]

borrowers are not obliged to repay loan . .

wow . . .

[kimamey]

And if there were to be an election now who would they vote for?

[kimamey]

borrowers are not obliged to repay loan . .

wow . . .

It's not really borrowing then is it.

[Neilly]

So a miller makes around Bt14.28 million per year

Ah...now I get why there is a huge market for high end luxury cars that have dodged paying import tax...they're only making Bt14 million and can't afford a legit one

[kurnell]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

Oh, that's a bit harsh bro!

[bigbamboo]

So they are saying that if the market price drops to below 12000B per tonne then the rice farmers would be better off staying in bed all day as there would be no profit at all?

[Tatsujin]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

Oh, that's a bit harsh bro!

Not harsh enough bro!

[kurnell]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

Oh, that's a bit harsh bro!

Not harsh enough bro!

Name one honest politician, anywhere in the world

[alant]

borrowers are not obliged to repay loan . .

wow . . .

quite normal

[tomross46]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

Oh, that's a bit harsh bro!

Not harsh enough bro!

Name one honest politician, anywhere in the world

Obama? 555555

[Soupdragon]

So they are saying that if the market price drops to below 12000B per tonne then the rice farmers would be better off staying in bed all day as there would be no profit at all?

What is wrong for the peasants paying the mill owner for the privilege of being able to work ?

I am sure many in this country would approve such a scheme.

[allan michaud]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

And of course the land owners were the first to benefit by upping the land rental rates as soon as the scam was announced. I would be intrigued to know more about how much rental prices have increased since the scam started.

[ballpoint]

And if there were to be an election now who would they vote for?

If there were to be an election right now the price would go back up again and all the turkeys would continue to vote for Sinawatra Claus.

[Jasun]

What was the rice price before this catastrophe unfolded? I thought the 15K was an over market figure.

[Thai at Heart]

Still waiting for the handsets to be rolled into contracts instead of paying 20k plus the expensive unlimited shonky 3g service.

[kimamey]

So the reality is, the farmers who this scheme is supposed to benefit aren't the ones making the profit, it's the millers/middlemen (as always) that cream off the cash.

So what was the point? The rich get richer . . . simple as that. Bunch of lying, thieving, a55holes this Govt is.

Oh, that's a bit harsh bro!

Not harsh enough bro!

Name one honest politician, anywhere in the world

I think it's wrong to assume ALL politicians are basically dishonest. I know a lot are and that may well be particularly true here but why would anyone who's honest and wants to benefit their country bother when it's already been decided that they are a crook?

[Tatsujin]

I think it's wrong to assume ALL politicians are basically dishonest. I know a lot are and that may well be particularly true here but why would anyone who's honest and wants to benefit their country bother when it's already been decided that they are a crook?

Actions speak louder than words, and I've seen very little here to dissuade me from the belief that ALL Politicians are basically dishonest.

I'd be interested if you could point to some Politicians here who you believe ARE honest and are trying to benefit their country, not themselves.

[rubl]

So, a further reduction of the pledge price to about market value levels would put farmers in the red?

[whybother]

What was the rice price before this catastrophe unfolded? I thought the 15K was an over market figure.

The 15K was over market by about 40% (IIRC).

[MILT]

Who didn't see this coming?

[kimamey]

I think it's wrong to assume ALL politicians are basically dishonest. I know a lot are and that may well be particularly true here but why would anyone who's honest and wants to benefit their country bother when it's already been decided that they are a crook?

Actions speak louder than words, and I've seen very little here to dissuade me from the belief that ALL Politicians are basically dishonest.

I'd be interested if you could point to some Politicians here who you believe ARE honest and are trying to benefit their country, not themselves.

The comment I was answering was Name one honest politician, anywhere in the world so not necessarily here in Thailand.

I don't know any politicians personally here or anywhere else although I have met a few so it's difficult to say but you will never get a group of people who are totally good or bad. It just doesn't happen.

If you just use a blanket judgement like that then it will never get any better because you aren't really making a judgement, you're just avoiding making the effort.

It works just the same the other way as well. There's been a lot of talk lately about a particular monk who seems to be having life a bit easy. One of the reasons this happens is because people tend to judge monks by what they are and assume they are always good and right rather than by what they do. This applies to other religions and also to people who have power and influence.

It can happen with a monarchy as well and does in Thailand where people respect the king just because he is the king regardless of what he has done or hasn't done. Thais are very lucky that the king hasn't abused that privilege because even if he did they would take no notice. It also means they seem to miss that he is king through no other reason than birth and circumstance and don't seem to look at what he has actually done despite not really needing to or being prepared for that responsibility. What they have is a man who has done what he thought was good for the country and should be respected for that not his position.

As an example of honest parliamentarians in my own country take a look at this link.

http://www.getsurrey.co.uk/news/s/2050990_reading_mps_in_the_clear_over_expenses_claim_scandal?page=2&page_size=25

I remember people at the time saying all politicians were just as bad as one another which is why they get bad ones.

Edited June 27, 2013 by kimamey

[Nickymaster]

Who didn't see this coming?

Tharit from the DSI.

[Scully]

I think it's wrong to assume ALL politicians are basically dishonest. I know a lot are and that may well be particularly true here but why would anyone who's honest and wants to benefit their country bother when it's already been decided that they are a crook?

Actions speak louder than words, and I've seen very little here to dissuade me from the belief that ALL Politicians are basically dishonest.

I'd be interested if you could point to some Politicians here who you believe ARE honest and are trying to benefit their country, not themselves.

The comment I was answering was Name one honest politician, anywhere in the world so not necessarily here in Thailand.

I don't know any politicians personally here or anywhere else although I have met a few so it's difficult to say but you will never get a group of people who are totally good or bad. It just doesn't happen.

If you just use a blanket judgement like that then it will never get any better because you aren't really making a judgement, you're just avoiding making the effort.

It works just the same the other way as well. There's been a lot of talk lately about a particular monk who seems to be having life a bit easy. One of the reasons this happens is because people tend to judge monks by what they are and assume they are always good and right rather than by what they do. This applies to other religions and also to people who have power and influence.

It can happen with a monarchy as well and does in Thailand where people respect the king just because he is the king regardless of what he has done or hasn't done. Thais are very lucky that the king hasn't abused that privilege because even if he did they would take no notice. It also means they seem to miss that he is king through no other reason than birth and circumstance and don't seem to look at what he has actually done despite not really needing to or being prepared for that responsibility. What they have is a man who has done what he thought was good for the country and should be respected for that not his position.

As an example of honest parliamentarians in my own country take a look at this link.

http://www.getsurrey.co.uk/news/s/2050990_reading_mps_in_the_clear_over_expenses_claim_scandal?page=2&page_size=25

I remember people at the time saying all politicians were just as bad as one another which is why they get bad ones.

You have'nt read the rules, have you?.

[belg]

millers are like politicians, ceo's and bankers : they don't really produce any (thing) much but they take the most profit on everything

[belg]

just a question, can i, my wife, family can get a subsidy from the tax payers money if my/our business is not profitable ?

no ?

so why give billions to farmers that cannot sustain themselves?

there is a chronic shortage of labour in the factories? so make farmers -> factory workers

ah...but then they will have to do something else than watch the rice grow after they planted it for several months

[Thai at Heart]

just a question, can i, my wife, family can get a subsidy from the tax payers money if my/our business is not profitable ?

no ?

so why give billions to farmers that cannot sustain themselves?

there is a chronic shortage of labour in the factories? so make farmers -> factory workers

ah...but then they will have to do something else than watch the rice grow after they planted it for several months

Very quaint. Have you seen the average age and education level of your average isaan rice farmer.

There are some smart ones, but education passed a lot by. Of course, that suited the country 20 years ago when they were building this rather misguided aim to be the world largest rice exporter.

[Thai at Heart]

just a question, can i, my wife, family can get a subsidy from the tax payers money if my/our business is not profitapble ?

no ?

so why give billions to farmers that cannot sustain themselves?

there is a chronic shortage of labour in the factories? so make farmers -> factory workers

ah...but then they will have to do something else than watch the rice grow after they planted it for several months

Very quaint. Have you seen the average age and education level of your average isaan rice farmer.

There are some smart ones, but education passed a lot by. Of course, that suited the country 20 years ago when they were building this rather misguided aim to be the world largest rice exporter.