Thai farmers give 'thumbs up', exporters 'thumbs down' for rice pledging scheme
By English News



BANGKOK, Sept 25 – More than half of Thai farmers complimented the government’s rice pledging scheme for improving their living conditions and alleviating their debts, an academic survey revealed today.

Thanawat Ponvichai, University of the Thai Chamber of Commerce Economic and Business Forecast Centre director said a survey of 1,228 farmers on their reactions to the rice subsidy found favourable responses from 63.7 per cent, nearly two-thirds.

They said they could save more by selling rice at the guaranteed price of Bt15,000 per tonne, but they said that farmland rentals and production costs have increased accordingly.

The survey found that 35.2 per cent of farmers objected to scrapping the pledging programme and 22.8 per cent said the scheme could be terminated if the market price of paddy was higher.

If the government suspends the scheme and lets the market mechanism control the paddy price, 40.9 per cent of farmers said they would protest and demand a continued subsidy or government intervention in reducing production costs, Dr Thanawat said.

The government should help reduce production costs, facilitate a debt moratorium, provide low interest loans and guarantee appropriate prices of rice, the farmers reportedly said.

In a separate survey of 135 rice exporters towards the rice pledging scheme, 70.6 per cent said the country stands to lose from the government’s policy given the exorbitant price, resulting in a reduction of Thai rice exports by 82 per cent and Thailand losing its competitive edge to Vietnam, India and Cambodia.

The Thai exporters said the pledging scheme has also damaged the quality of Thai rice and, if the programme is immediately terminated, it would still take several years for Thailand to return to its former position as the world’s No. 1 rice exporter.

According to Dr Thanawat, circulated funds from the rice pledging scheme were as high as Bt100 billion and farmers’ revenues increased by Bt50,000 per household per year, but Thailand’s rice export volumes have slipped from 10 million tonnes a year to six million tonnes. Revenue loss from rice exports was about Bt50-60 billion. (MCOT online news)


-- TNA 2013-09-25

Free meals are never a bad thing, however one should be aware of the hidden cost, which the farmers are clearly not.

In a separate survey of 135 rice exporters towards the rice pledging scheme, 70.6 per cent said the country stands to lose from the government’s policy given the exorbitant price, resulting in a reduction of Thai rice exports by 82 per cent and Thailand losing its competitive edge to Vietnam, India and Cambodia.

The Thai exporters said the pledging scheme has also damaged the quality of Thai rice and, if the programme is immediately terminated, it would still take several years for Thailand to return to its former position as the world’s No. 1 rice exporter.

At least someone is awake here .

"If the government suspends the scheme and lets the market mechanism control the paddy price, 40.9 per cent of farmers said they would protest and demand a continued subsidy or government intervention in reducing production costs, Dr Thanawat said."

PT have now locked themselves into a position where they are damned if they do and damned if they don't. The rice scheme may have bought them their way into power but it will now either bankrupt the country or see them face a riotous assembly of farmers if they end it. Truly the most ridiculous of all their policies, the most ill conceived piece of thinking they could have come up with and the one that will doom them.

The Government won power using popular polices,which as we can now,

plainly see do more harm than good,they are only short term measures,

and are only using public money to buy votes.

It has started something it cannot stop,and the only way out for the Government,

I can see is to dissolve Parliament, and to come back under a different name,

which they have already done twice,new name ,same people,and then blame

the previous Government for all the problems !,

regards Worgeordie

"In a separate survey of 135 rice exporters towards the rice pledging scheme, 70.6 per cent said the country stands to lose from the government’s policy given the exorbitant price, resulting in a reduction of Thai rice exports by 82 per cent and Thailand losing its competitive edge to Vietnam, India and Cambodia."

"According to Dr Thanawat, circulated funds from the rice pledging scheme were as high as Bt100 billion and farmers’ revenues increased by Bt50,000 per household per year, but Thailand’s rice export volumes have slipped from 10 million tonnes a year to six million tonnes. Revenue loss from rice exports was about Bt50-60 billion."

(Pasted from OP article)

Now there's some creative accounting for ya.

"In a separate survey of 135 rice exporters towards the rice pledging scheme, 70.6 per cent said the country stands to lose from the government’s policy given the exorbitant price, resulting in a reduction of Thai rice exports by 82 per cent and Thailand losing its competitive edge to Vietnam, India and Cambodia."

"According to Dr Thanawat, circulated funds from the rice pledging scheme were as high as Bt100 billion and farmers’ revenues increased by Bt50,000 per household per year, but Thailand’s rice export volumes have slipped from 10 million tonnes a year to six million tonnes. Revenue loss from rice exports was about Bt50-60 billion."

(Pasted from OP article)

Now there's some creative accounting for ya.

Maybe they just borrowed TAT's calculator?

"If the government suspends the scheme and lets the market mechanism control the paddy price, 40.9 per cent of farmers said they would protest and demand a continued subsidy or government intervention in reducing production costs, Dr Thanawat said."

PT have now locked themselves into a position where they are damned if they do and damned if they don't. The rice scheme may have bought them their way into power but it will now either bankrupt the country or see them face a riotous assembly of farmers if they end it. Truly the most ridiculous of all their policies, the most ill conceived piece of thinking they could have come up with and the one that will doom them.

Reality is, half of the farmers aren't profitable at the market price, so what should they do?

Stop growing? Then they starve, the exporters have nothing to export anyway, and the country has to feed 2mn starving farmers.

They need to organise the farmers to grow other product, but what to grow?

"If the government suspends the scheme and lets the market mechanism control the paddy price, 40.9 per cent of farmers said they would protest and demand a continued subsidy or government intervention in reducing production costs, Dr Thanawat said."

PT have now locked themselves into a position where they are damned if they do and damned if they don't. The rice scheme may have bought them their way into power but it will now either bankrupt the country or see them face a riotous assembly of farmers if they end it. Truly the most ridiculous of all their policies, the most ill conceived piece of thinking they could have come up with and the one that will doom them.

Not really not (the underlined part), first of all the damned ones are Thai people that will have to shoulder the burden of this scheme; for PTP, it got them elected and if they play it right, they´ll drop this hot potato in another party's lap (after hoovering up a good dividend for themselves), let them solve the situation, be abjectly hated by a large percentage of the electorate for their trouble and in will come PTP (or the reincarnation at the time) telling everyone how evil and uncaring those other guys with their bitter medicines are and how much better things were under them.

For a case study just look at the crash of 1997 and subsequent developments.

It's a boom-boost cycle, if PTP can jokey to be around during the booms and handle the boosed up remnants to someone else they'll stay electoraly sucessful... to hell with the country and their people though.

Farmers happy, exporters not happy, taxpayers at a loss 'only'

Edited September 25, 201312 yr by rubl

Farmers happy, exporters not happy, taxpayers at a loss 'only':(

It's a win-lose-lose situation for the three entities involved.

I'm sorry, but I don't think the headline is entirely accurate: From what I read, and I am could be misatken as I've had a long day and 1 (or 3) too many beers, is that 63.7% gave favourable (whatever that means and not specific) responses, but when it comes down to details, an dforgive me for general numbers (don't have the energy to keep scrolling up to see exact numbers, is that the percentages of people complaining about cancellation/threatening to protest are in the upper 30's lower 40's, I read this as a majority of farmers saying they'tr A) not against canellation and B ) not threatening to protest. I read the article as saying "A majority of people involved with the rice industry give the "thumbs down" YEs and I know they only interviewed 1,200 odd people, but <deleted> off anti-thai survey people...I've never know an exit poll at western country elections to interview every voter.

Edited September 25, 201312 yr by SABloke

One simple solution for the PTP would be to leave Rice prices to market forces & pay farmers directly, x Bhat / rai of rice grown up to say 500 rai / farmer, this would probably cost the country less given that it wouldn't screw the export market, but of course this would mean that the govs 'friends' who own the rice mills wouldn't be abled to make fortunes from tax payers money by ripping off the farmers so it's probably doubtful that they would use this simple solution...

One simple solution for the PTP would be to leave Rice prices to market forces & pay farmers directly, x Bhat / rai of rice grown up to say 500 rai / farmer, this would probably cost the country less given that it wouldn't screw the export market, but of course this would mean that the govs 'friends' who own the rice mills wouldn't be abled to make fortunes from tax payers money by ripping off the farmers so it's probably doubtful that they would use this simple solution...

The Dems idea was to pay the farmers.

I wonder how much the fertilizer price went up when the pledging scheme was announced. This is often overlooked but those who control the business must have had a great windfall.

There are plenty of other ways to help those in need without involving all the hangers on, middlemen, rice millers/warehouse owners, fertilizer sellers etc.

Really can't see how they're ever gonna get voted back in again... It'd take another Coup or a hell of a lot of money spread around Isaan & the North's Towns & Villages, I live in one & trust me they won't even get one vote up here where most of the people live...

The 'Democrats' that is...

the money should have been spend, in giving real poor farmers, the land title where they do their harvast... so they would not have so many masters

By the time PT are voted out at the next election, those crooks will have stolen billions of baht from the Kingdom and couldn't care less what happens to the country after they are gone...

In a separate survey of 135 rice exporters towards the rice pledging scheme, 70.6 per cent said the country stands to lose from the government’s policy given the exorbitant price, resulting in a reduction of Thai rice exports by 82 per cent and Thailand losing its competitive edge to Vietnam, India and Cambodia.

The Thai exporters said the pledging scheme has also damaged the quality of Thai rice and, if the programme is immediately terminated, it would still take several years for Thailand to return to its former position as the world’s No. 1 rice exporter.

At least someone is awake here .

The rice is the same quality: that is not where I fear for today! Stop calling this a different name than what it is, please. The Thai's farmers know how to grow excellent rice. The government needs to subsidize the farmers just like is done in the US, and I presume all developed countries. Countries like Ethiopia are struggling because of a lack farmers. No country should let the amount of farmers decrease, yet should encourage new generations to continue to farm for the sake of the nation. Just pay them a subsidy to pay the farmers a living wage. When did you last see a farmer driving a car, much less a Mercedes. Do you want to eat?