Rice losses at '200 billion Baht a year'

[rogerdee123]

If the country is losing 200 billion per year on the rice scheme ... plus the 100 billion per year on corruption ... that's a total of 300 billion being lost on these two big ticket items alone.

Then if we divide by 60 million (approx) people in Thailand, the mobsters are getting about 5000 baht per year from each man, woman and child in the country. This is how much the serfs are willing to pay their lords.

But of course it's not being entirely paid, it's also being racked up in debts.

[PeterSmiles]

I may be a sceptic but if you read between the lines it sound like a trillion baht has been pumped into this scam so far with little or no foreseeable returns. That's a bit more than 200 billion in losses per year.

It would have been cheaper to buy every registered farmer a brand new Ferrari. Might raise some eyebrows around the evening lao khao bottle when it's put into that kind of perspective.

You remember that burned out transporter truck some time ago, that was on it's way to Sisaket with Ferrari's and lamborghini's.

At least they tried

[Spare]

Don't understand the concept of "Subsidy to the poor farmers?"

If govt make B200 billion / yr from the poor farmer, will the poor start a revolution? Most likely.

[zydeco]

Looks like they'll need to hike the fee for long term visa extensions to stratospheric levels. Want to live in Thailand? Pay 100,000 baht please--or purchase a truck load of rice, whichever is more expensive.

[Thaddeus]

Don't understand the concept of "Subsidy to the poor farmers?"

Well, that is your problem.

[centrala]

If the country is losing 200 billion per year on the rice scheme ... plus the 100 billion per year on corruption ... that's a total of 300 billion being lost on these two big ticket items alone.

Then if we divide by 60 million (approx) people in Thailand, the mobsters are getting about 5000 baht per year from each man, woman and child in the country. This is how much the serfs are willing to pay their lords.

But of course it's not being entirely paid, it's also being racked up in debts.

The current administration is losing a lot more than 100 billion baht in corruption.

[NeverSure]

I've been posting all along that the losses are at least 1 trillion baht, just by adding up the various news articles on here this year.

The Ag Bank is bankrupt. It has only 100 billion baht of its own capital, and that only if you believe the government which owns the bank.

There was an article on here earlier this year where the government took half of the bank's capital, or half of 200 billion baht to help fund the rice scheme. This was in addition to the 700 billion "revolving fund" for the scheme. This was all before this year's loss of 200+ billion.

Now, a bank's own capital is all it can lose before it is bankrupt. All the rest of the money it has is customer money. So it has loaned 700 Billion of customer money with only 100 billion to back it up. Now it is going to loan more money for millers and for this year's crop.

The bank has less than 10% of what it needs to back its bad rice loans. After that, if it's dishonest ala Cyprus or Greece and probably Italy, it will begin losing its customers money.

I wouldn't have one satang in a Thai bank right now except for what I needed for 1 month's expenses. Although some banks in the West aren't all that hot, at least they are subject to honest audits and either closed or bailed out. They have to write off their bad loans, and they aren't allowed to operate when they are upside down.

This Thailand mess isn't funny any more.

[kimamey]

Makes me sick if I think about how many people in need could have been helped with this money. Homeless kids, abused woman, sick people who have no money for medicine etc etc.

And yes, also street dogs and cats who are suffering everyday.

I just hope that all these corrupt people and politicians who are stealing money will suffer the same one day.

I may well get some abuse for this but the same could be said for a lot of the money spent on temples monks and statues. Not all of it obviously as some monks do a lot of good but certainly some of it. Of course there's one monk who definitely took money that could have found a better use. Mind you that's back to corruption I suppose.

[Robby nz]

I see the latest numbers that have been calculated by outside accountants based on Govt information put the loss as of Jan 31, 2013, at 495.61 billion baht.

With the present year added at another 50% for the full year (to 31 Jan 2014) that would make the loss up to about 740 billion.

Little wonder Govt ministers don't want the truth to come out.

Also read elsewhere that the Commerce Ministry is claiming a refund of 7 billion baht from cabinet for rice that it claims was given to flood victims and given as relief aid to other countries.

Seems they have given no accounting for this claim.

[ratcatcher]

I see the latest numbers that have been calculated by outside accountants based on Govt information put the loss as of Jan 31, 2013, at 495.61 billion baht.

With the present year added at another 50% for the full year (to 31 Jan 2014) that would make the loss up to about 740 billion.

Little wonder Govt ministers don't want the truth to come out.

Also read elsewhere that the Commerce Ministry is claiming a refund of 7 billion baht from cabinet for rice that it claims was given to flood victims and given as relief aid to other countries.

Seems they have given no accounting for this claim.

"Also read elsewhere that the Commerce Ministry is claiming a refund of 7 billion baht from cabinet for rice that it claims was given to flood victims and given as relief aid to other countries."

I think the actions we are seeing here are the fiscal equivalent of rearranging the deck chairs on the Titanic. The iceberg,so to speak, lies ahead. When the impact will come is anybody's guess. But it will come.

[PeterSmiles]

Also read elsewhere that the Commerce Ministry is claiming a refund of 7 billion baht from cabinet for rice that it claims was given to flood victims and given as relief aid to other countries.

Seems they have given no accounting for this claim.

Thailand has always been very generous in relief aid to other countries.

I recall they initial offered 5 million Baht for the 2004 Tsunami victims in the country that is the biggest investor in Thailand.

Only when they were publicly ashamed they upped their offer, so yeah 7 Billion in relief aid is imaginable..

[realfunster]

From figures I've seen they have spent 28.000+ for every ton of rice they've bought at 15.000... where did the other 13.000 per every ton go?

Obviously not to the farmers, as the Commerce Minister lies about.

A chunk of it has gone into the London real estate market........

Thais snap up London real estate Buy 200 units worth over 10 billion baht

Interesting comment, I was approached by a UK company for a job back home late last year- towards the end of the interview the lady asked my how a certain Thai government minister could afford a house in Mayfair - the deal brokered by her husband.....

[Ricardo]

Interesting comment, I was approached by a UK company for a job back home late last year- towards the end of the interview the lady asked my how a certain Thai government minister could afford a house in Mayfair - the deal brokered by her husband.....

To paraphrase Inspector Clouseau, when asked in court a similar question (about his wife's ability to afford a fur-coat ?), the minister's wife is clearly economical with the housekeeping-money !