Fears Thai rice scheme 'will break budget'

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RICE
Fears rice scheme 'will break budget'
Suphannee Pootpisut
The Nation



Concern for 'balanced budget' vow as outstanding expenditures reach Bt700 billion

BANGKOK: -- THE FINANCE MINISTRY’s sub-committee assessing the cost of the rice-pledging scheme plans to finalise figures for the first year of operations next week, with or without the latest information on inventories, a ministry source said yesterday.

The panel chaired by deputy permanent secretary Supa Piyajitti is rushing its report, as the scheme is entering its third year and there are concerns over inconclusive results from the first two years.

Indeed, there are fears that the scheme's expenditures, which have reached Bt700 billion, could spiral out of control and threaten plans to run a balanced budget by 2017.

The report has been delayed for months as the Commerce Ministry has asked for more time to submit the latest data on remaining stocks and the quantity of rice released.

"As the Commerce Ministry could not yet trace all stockpiles, the committee will need to conclude our report with the available information," said the official, who asked not to be named. All unaccounted for stocks will be deducted, based on the average price of rice sold by the ministry, the source said.

The Commerce Ministry earlier informed the committee that 2.9 million tonnes of rice was missing from granaries. However, after inspection by police and other agencies, the figure could rise to 3.9 million tonnes.

Kicked off in 2011 for the 2011/12 harvest year, the scheme is expected to show a loss of at least Bt100 billion.

The Cabinet recently approved a Bt270 billion pledging budget for the 2013/14 harvest year. However, under the government's vow to practice fiscal discipline, by the end of this year it is committed to lower outstanding spending under this scheme from Bt700 billion to Bt500 billion by disposing of rice stocks.

Churarat Sutheethorn, head of the Public Debt Management Office, said the Bank for Agriculture and Agricultural Cooperatives, which is in charge of implementation, had not yet put a fund-raising plan to the office.

Although the office's loan guarantee for fiscal 2014 is set at Bt250 billion, the office's loan guarantees for the rice-pledging scheme have hit the ceiling of Bt410 billion.

"Bringing down the scheme's outstanding expenditure to Bt500 billion at the end of this year is set to balance the budget in 2017. If this can't be done, we may not achieve the target," she said.

Under new Commerce Minister Niwatthumrong Boonsongpaisan, the ministry is accelerating stock releases. Two weeks ago, after returning from China, he said Chinese state enterprises had agreed to place orders for 1.2 million tonnes of Thai rice.

The pledging scheme raised the government stockpiles to about 15 million tonnes, and given the high pledging price of Bt15,000 per tonne against a lower market rate, it may be difficult to unload stocks, even at a loss.

In July, 5-per-cent broken milled white rice from Thailand was quoted internationally at $538.26 per tonne on average or Bt16,148. The price included all freight costs.

Democrat MP Ong-Art Klampaiboon said yesterday the government could make the rice scheme transparent by revealing details of government-to-government rice deals.

"If the government can do this, I believe that the scheme would be more transparent," he said, calling for details on the G2G rice deal with China.

Niwatthumrong announced earlier this month that China's state enterprises would place orders for 1.2 million tonnes of white rice from Thailand.

Ongart said some rice traders were profiting from the deals, with rice prices quoted below market rates. Once selling the rice, they benefited from the difference.

He said bosses of some warehouses used to stock the rice were also benefiting.

He promised further probes and said if any irregularities were found, the Democrat Party would submit a petition to the National Anti-Corruption Commission.


-- The Nation 2013-09-16

[NongKhaiKid]

The headline is more than a little redundant as the fears have been in existence since the introducyion of this ill-conceived scheme.

So a report on the first year is to be produced irrespective of the lack of information on stockpile inventories. Funny how when it suits official don't know the appropriate figures and at other times can account for every last grain.

A report will eventually be issued but we can be sure any relationship between it and the truth will be purely coincidental.

[Ricardo]

As the Commerce Ministry could not yet trace all stockpiles

They've owned it, on the country's behalf, for two years ... but don't know where it is !

The Commerce Ministry earlier informed the committee that 2.9 Million tons of rice was missing from the granaries

Not that this is entirely unexpected, but how on Earth does 2.9 million tons of something just disappear, into thin air ?

At B15k per-ton (ie not including milling, transport & storage-costs) this is a mere B 43.5-billion, Oh & it might be as-much-as B 58.5-billion, from the first year alone !

Time for the PM to make another series of overseas-visits, or practise walking-away quickly from reporters, to avoid commenting on the fiasco ?

Or send for former-DPM Chalerm, to make everything OK again, within 90-days !

[PatOngo]

Never mind.......25,000,000+ foreign tourists are on their way to Thailand over the next 12 months, surely that will plug any deficit in the rice scheme scam.

[Mosha]

Now to be followed by an equally crazy rubber, corn, etc.... schemes.

[ggold]

As the Commerce Ministry could not yet trace all stockpiles

They've owned it, on the country's behalf, for two years ... but don't know where it is !

The Commerce Ministry earlier informed the committee that 2.9 Million tons of rice was missing from the granaries

Not that this is entirely unexpected, but how on Earth does 2.9 million tons of something just disappear, into thin air ?

At B15k per-ton (ie not including milling, transport & storage-costs) this is a mere B 43.5-billion, Oh & it might be as-much-as B 58.5-billion, from the first year alone !

Time for the PM to make another series of overseas-visits, or practise walking-away quickly from reporters, to avoid commenting on the fiasco ?

Or send for former-DPM Chalerm, to make everything OK again, within 90-days !

I was going to say, that they will be asking for a 30 day extension to work out the figures, just like they need 30 day extensions regarding answering questions over some ones Passport!

[tomyummer]

I can't believe we pay taxes to finance these stupid people and these dumb initiatives.

Actually, I must be the idiot for paying taxes.

[GeorgeO]

I can't believe we pay taxes to finance these stupid people and these dumb initiatives.

Actually, I must be the idiot for paying taxes.

you must be...! Virtually no-one pays taxes here...!!

[rametindallas]

"The Commerce Ministry earlier informed the committee that 2.9 million tonnes of rice was missing from granaries. However, after inspection by police and other agencies, the figure could rise to 3.9 million tonnes."

At 15,000 Baht per tonne, that missing rice is worth between $1,357,200,000 and $1,825,200,000. The accounts show that the government paid for the rice but cannot show the rice. Maybe this rice never existed. This would be considered a huge scandal in he US but, in Thailand, this is a truly staggering figure. It make it crystal clear why the government wants to continue the program in the face of criticism. I, myself, would be happy to face criticism for this amount of tax free, unaccounted for money.

[h90]

I can't believe we pay taxes to finance these stupid people and these dumb initiatives.

Actually, I must be the idiot for paying taxes.

you must be...! Virtually no-one pays taxes here...!!

So..no 7/11, no bigC, no beer, no gasoline, no cigarettes, no McDonalds, no KFC, or do you live in the Duty Free area at an airport?

[h90]

As the Commerce Ministry could not yet trace all stockpiles

They've owned it, on the country's behalf, for two years ... but don't know where it is !

The Commerce Ministry earlier informed the committee that 2.9 Million tons of rice was missing from the granaries

Not that this is entirely unexpected, but how on Earth does 2.9 million tons of something just disappear, into thin air ?

At B15k per-ton (ie not including milling, transport & storage-costs) this is a mere B 43.5-billion, Oh & it might be as-much-as B 58.5-billion, from the first year alone !

Time for the PM to make another series of overseas-visits, or practise walking-away quickly from reporters, to avoid commenting on the fiasco ?

Or send for former-DPM Chalerm, to make everything OK again, within 90-days !

"Not that this is entirely unexpected, but how on Earth does 2.9 million tons of something just disappear, into thin air ? "

someone sold it into his/her own pocket....if it was every there.

[boomerangutang]

If it wasn't such a bad plan with such giant holes for corruption, Thaksin wouldn't have been its instigator and chief cheerleader.

[boomerangutang]

I can't believe we pay taxes to finance these stupid people and these dumb initiatives.

Actually, I must be the idiot for paying taxes.

you must be...! Virtually no-one pays taxes here...!!

So..no 7/11, no bigC, no beer, no gasoline, no cigarettes, no McDonalds, no KFC, or do you live in the Duty Free area at an airport?

There are essentially no real estate taxes in Thailand. Main reason: the people who make the rules are the same folks who own most of the real estate. 1 + 1 = 2, which rhymes with "all for me, and none for you."

[tominbkk]

I can't believe we pay taxes to finance these stupid people and these dumb initiatives.

Actually, I must be the idiot for paying taxes.

you must be...! Virtually no-one pays taxes here...!!

I try not to think about the amount I pay to work here. I don't mind paying taxes, I just hate to see the money wasted and pilfered. Really sad.

[tingtongteesood]

Just a load of corrupt people carrying on as normal lining their pockets by either falsely claiming for rice that was not pledged or else selling it off for their own profit, either way highly lucrative...

[SSSlongtime]

i think i have the 4 million tons in my kitchen ,sure i paid for it though

[h90]

I can't believe we pay taxes to finance these stupid people and these dumb initiatives.

Actually, I must be the idiot for paying taxes.

you must be...! Virtually no-one pays taxes here...!!

So..no 7/11, no bigC, no beer, no gasoline, no cigarettes, no McDonalds, no KFC, or do you live in the Duty Free area at an airport?

There are essentially no real estate taxes in Thailand. Main reason: the people who make the rules are the same folks who own most of the real estate. 1 + 1 = 2, which rhymes with "all for me, and none for you."

The Democrats wanted one with exceptions for small lands as some of the big one owns just impossible big areas, complete islands, etc etc.

But they couldn't do it as well...too much pressure.

[boomerangutang]

you must be...! Virtually no-one pays taxes here...!!

So..no 7/11, no bigC, no beer, no gasoline, no cigarettes, no McDonalds, no KFC, or do you live in the Duty Free area at an airport?

There are essentially no real estate taxes in Thailand. Main reason: the people who make the rules are the same folks who own most of the real estate. 1 + 1 = 2, which rhymes with "all for me, and none for you."

The Democrats wanted one with exceptions for small lands as some of the big one owns just impossible big areas, complete islands, etc etc.

But they couldn't do it as well...too much pressure.

Look at the names of the biggest landholders, and you could be excused for calling it "The Chinafication of Thailand"