Thai Cabinet approves 270 billion baht for this year's rice pledging scheme

[webfact]

Cabinet approves 270 billion baht for this year's rice pledging scheme

BANGKOK, 3 September 2013 (NNT) - The cabinet has approved the Commerce Ministry’s proposal to maintain the rice pledging price at 15,000 baht per tonne for the main crop and 13,000 baht per tonne for the second crop in the 2013-14 season.

The budget for the pledging scheme during the current harvest season is estimated at 270 billion baht.

For the main crop, the government is set to buy paddy with no more than 15% moisture content at 15,000 baht a tonne, up to a maximum of 350,000 baht per household. The first round of pledging is slated for October 2013 to February 2014.

For the second crop, the government will buy paddy with no more than 15% moisture content for 13,000 baht per tone, up to a maximum of 300,000 baht per household.


-- NNT 2013-09-03

[GentlemanJim]

That is NINE BILLION US Dollars.

How the scam works now - all the farmers have to register they then take their crops to the mill owner who tells them their rice has 20% humidity so no big money. Mill owner then gets someone else to drive the rice to another friendly mill owner (vice versa) and they pay each other 15k and claim from the Goverment! Happy times return for the middle man!

[Thaddeus]

Is that maximum figure per household a new addition?

[chooka]

Here we go again. Nothing learnt from the last.

[theblether]

They can't change it, it will cause a revolution in the ranks of their supporters. They won't be able to change it next year either. It's an albatross and it's here to stay.

[jaltsc]

Is it me, or does it appear that the Thai government's main function is to provide fodder for us to criticize on Thai Visa?...or...Do they want to increase tourism by driving down the currency value until a U.S.$ can buy 45 Baht?

With apologies to George Carlin: Look at how dumb the average Thai politician is. Well, 50% of the politicians are dumber than that.

[dcutman]

How is the BAAC staying afloat supporting this crazy scam? Its all money out and not much coming in. Quickly approaching, Bt 1 trillion payed out, with only Bt 125 billion repaid on this loan.

So if the BAAC fails because of this scam, the Govt/taxpayer will bail them out with a loan?

[Robby nz]

Should be OK

They said before that they will try to limit the loss this year to only 100 billion Baht.

[NeverSure]

Well, that puts total spending for the rice scheme over 1 trillion baht, that they've admitted to. Their published sales numbers are all over the map so who knows if they've really sold any worth mentioning?

[surangw]

scheme fits the plan very well

[NongKhaiKid]

They can't change it, it will cause a revolution in the ranks of their supporters. They won't be able to change it next year either. It's an albatross and it's here to stay.

Most definitely, let's keep throwing money at this money eating scheme and keep our supporters happy, make sure they vote in our favour so we stay in power and can get on with the business of the real agenda.

[worgeordie]

The warehouse and storage business would seem a good bet at the moment,

store rice for years as cannot be sold,think they are going to have to start building

more warehouses for the rubber next!

Black hole sighted in Thailand. THis is not going to end well.

regards Worgeordie

Edited September 3, 2013 by worgeordie

[chooka]

The warehouse and storage business would seem a good bet at the moment,

store rice for years as cannot be sold,think they are going to have to start building

more warehouses for the rubber next!

Black hole sighted in Thailand. THis is not going to end well.

regards Worgeordie

Let's not forget the corn scheme which is the same as the rice one.

[pedro01]

Is that maximum figure per household a new addition?

Yes - and something that should have been there from the start.

What will be interesting now is how that is managed, if they can stem the rice coming in across the borders and how many households reach that limit. It could well be this caps the spend below the 270 Billion - on the rice purchases at least. Not sure about storage & scrap..

[Soutpeel]

You farang tink too mutt......

there will be no stock piles of finest premium Thai rice, the new goverment initative of selling bags to rice at the airport as souvenir's of their visit to Thailand will ensure that all the rice will be sold at a profit...

[Ricardo]

How is the BAAC staying afloat supporting this crazy scam? Its all money out and not much coming in. Quickly approaching, Bt 1 trillion payed out, with only Bt 125 billion repaid on this loan.

So if the BAAC fails because of this scam, the Govt/taxpayer will bail them out with a loan?

I believe that BAAC is government-owned, so yes, the government & taxpayer are on-the-hook for this one.

IIRC last time BAAC became over-extended, due to their payouts on the rice-scheme not being matched by government reimbursements, the government approved the raising of BAAC's borrowing-limits so that the problem was deferred. Why doesn't the government pay its debts to BAAC ... excellent question !

[Thaddeus]

It's all Vapour-Money anyway, it doesn't exist, it isn't backed up by real folding stuff or gold, the only tangible asset is piled up in warehouses overvalued by 50%.

This is how the credit crisis in the west started. The bearer demanded payment, and the cupboard was bare.

[Thait Spot]

PTP intend to borrow 2.2T baht to finance the high speed rail.

With interest this will amount to around 5T over a massive 50 years.

If the cancelled the rice scheme they could have paid half already!!

Sheer madness

[Baerboxer]

PTP intend to borrow 2.2T baht to finance the high speed rail.

With interest this will amount to around 5T over a massive 50 years.

If the cancelled the rice scheme they could have paid half already!!

Sheer madness

Madness indeed. But, just who are actually personally profiting from this scheme? The ones profiting won't think its madness, but another very clever enrichment scheme.

[Thait Spot]

PTP intend to borrow 2.2T baht to finance the high speed rail.

With interest this will amount to around 5T over a massive 50 years.

If the cancelled the rice scheme they could have paid half already!!

Sheer madness

Madness indeed. But, just who are actually personally profiting from this scheme? The ones profiting won't think its madness, but another very clever enrichment scheme.

Madness is in the eye of the beholder

I guess!

[itchybum]

Does that figure include the 10/15% off the top...or ??

[djlest]

Who cares how many billions or trillions of debt Thailand will owe after the rice scheme!

If it keeps the Shins in business for just a few more years, they will have their underground empire ticking away nicely and the dems can come back and pick up the pieces.

Thai politics is lets rape everything NOW! Maybe we can buy another term or two, maybe not! But who cares - rape and pillage and smile!

[Bodrules]

Awww ain't it grand to know how the new booze tax is going to fund mill owners retirement plans...