IMF takes aim at Yingluck’s rice-pledging scheme

[Lite Beer]

IMF takes aim at Yingluck’s rice-pledging scheme

BANGKOK: -- The International Monetary Fund (IMF) has urged Thailand to drop its costly rice-pledging scheme and scale back other fiscal stimulus measures to achieve a balanced budget and make room for spending on projects that bolster economic growth.

The IMF’s recommendations came after Thailand extended its rice pledging scheme for the third year in October.

In its annual review of Thailand’s economy, IMF said for the third subsidy year, which began last month, the Thai government made some minor moves to scale back the subsidy, including lowering the rice purchase price and limiting the amount of rice each household can sell. But the government is still expected to pay around $8.6 billion on the subsidy for 2013-14.

IMF said “with the pledging prices about 40% above market prices, it is inevitable for the government to incur losses as long as the scheme remains unchanged.”

The government has committed 410 billion baht to the revolving fund for managing the scheme, but it is unclear how losses will be contained with the size of the fund.

It said uncertainty and lack of data concerning the rice paddy pledging scheme has eroded confidence in Thailand’s public finance.

IMF then recommended the government to replace the rice scheme with a more effective measure to support low-income agriculture households, such as targeted cash transfers.

The rice-pledging scheme was launched in 2011 after Prime Minister Yingluck Shinawatra took office. Under the scheme, the government buys rice from local farmers for a set price above market rates.

The subsidy has left the Yingluck government with a big bill and millions of tons of unsold rice. The government has spent about 670 billion baht since the scheme began buying rice at premiums of 35% above market rates. In July, the Commerce Ministry reported losses of 136 billion baht in the 2011-12 crop year.

The rice pledging scheme is one of several stimulus programs of the government which was economists and academics was populist policy and jeopardize commitment to balance the budget by 2017, and keep public debt below 50% of GDP.

According to the Public Debt Management Office, the country’s public debt now was 45.5% of GDP as of September.

Source: http://englishnews.thaipbs.or.th/imf-takes-aim-yinglucks-rice-pledging-scheme/?utm_source=rss&utm_medium=rss&utm_campaign=imf-takes-aim-yinglucks-rice-pledging-scheme

--Thai PBS 2013-11-13

[soi41]

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

[ginjag]

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

Or brother ???

[JoeThePoster]

Or caddie.

[Lite Beer]

Commerce says rice scheme raises farmers’ earning, clears debts

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the government’s rice pledging scheme helped to increase farmers’ earnings and clear their debts, though it would inflict loss of over 100 billion baht a year.

Niwatthamlong’s assurance of the rice subsidy scheme came after he was asked to comment on recommendation by the International Monetary Fund (IMF) to terminated the scheme and look to other stimulus measures that could enhance economy instead

The commerce minister who is also deputy prime minister said that he has not yet informed of such recommendation from authorities and therefore could not make a comment on it.

However he said that he did not know of which sources the IMF has managed to obtain the information from.

He admitted that the rice pledging scheme had inflicted loss of about 80 billion baht a year on every government in the past, saying that this year was high of over 100 billion baht a year or 20 billion baht more, due to the amount of rice the government bought from farmers was high.

But he insisted that the rice pledging scheme did benefit the farmers because they obtained high revenues that enabled them to pay off their debts

Source: http://englishnews.thaipbs.or.th/commerce-says-rice-scheme-raises-farmers-earning-clears-debts/?utm_source=rss&utm_medium=rss&utm_campaign=commerce-says-rice-scheme-raises-farmers-earning-clears-debts

--Thai PBS 2013-11-13

[rubl]

but ... but ... but ... my golf caddy told me it's a brilliant scheme to corner the rice market and should be continued for a few more years

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

[laurentbkk]

Just wait for the comments of the PM " IMF doesnt rule Thailand , but thanks for the tip"

[NeverSure]

The grand old IMF which gets its figures from the Thai government.

[casindonet]

Wait for it....wait for it. Some minister is gonna counter this mis-information from IMF. You farangs not understand thainess.

Sent from my GT-I9200 using Thaivisa Connect Thailand mobile app

[winstonc]

she said mfi..that furniture chain in the uk...what would they know about rice.....first the protestors.now this lot...just let me run the country..hahahahahaha.and anyway the farmers are driving around in lovely trucks/cars.so it must be working...or is tacky telling me porkies..shes guna have heart failure if this carries on bless her...

[cornishcarlos]

It either helps clear their debts or encourages more debt as they buy a new Vigo to go to the market in ?????????

[GentlemanJim]

Commerce says rice scheme raises farmers earning, clears debts

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the governments rice pledging scheme helped to increase farmers earnings and clear their debts, though it would inflict loss of over 100 billion baht a year.

Niwatthamlongs assurance of the rice subsidy scheme came after he was asked to comment on recommendation by the International Monetary Fund (IMF) to terminated the scheme and look to other stimulus measures that could enhance economy instead

The commerce minister who is also deputy prime minister said that he has not yet informed of such recommendation from authorities and therefore could not make a comment on it.

However he said that he did not know of which sources the IMF has managed to obtain the information from.

He admitted that the rice pledging scheme had inflicted loss of about 80 billion baht a year on every government in the past, saying that this year was high of over 100 billion baht a year or 20 billion baht more, due to the amount of rice the government bought from farmers was high.

But he insisted that the rice pledging scheme did benefit the farmers because they obtained high revenues that enabled them to pay off their debts

Source: http://englishnews.thaipbs.or.th/commerce-says-rice-scheme-raises-farmers-earning-clears-debts/?utm_source=rss&utm_medium=rss&utm_campaign=commerce-says-rice-scheme-raises-farmers-earning-clears-debts

--Thai PBS 2013-11-13

How do you tell if a Thai politician is lying and bulls****ing ......... He has a pulse!

It is embarrasing to read sometimes. I think over to world news for me.

[Pib]

The rice pledging scheme may be a real money pit for the taxpayer, but it's a real pig's trough for some and it's sure a great vote buying scheme.

[mrtoad]

The rice scam sham would be laughable, if the implications for Thailand weren't so serious in the long term. This scam has been set up to enrich The Caddy's lackeys and to grab votes from the farming community, even though they have no real interest in improving people in the provinces lives much in the long term. That 2 Trillion Baht bill and Amnesty, is what it's all about, and nothing must get in the way of that, and absolving each other of alleged crimes.

Let's wait for the apologists to defend the indefensible.

[JRSoul]

The rice pledging scheme may be a real money pit for the taxpayer, but it's a real pig's trough for some and it's sure a great vote buying scheme.

The problem is that it is unsustainable and will eventually collapse under its own mass of unsold rice and debt. Winding it back is not helping as the farmer's sell their best rice on the open market after pledging what they can, lowering the price for govt stock, and stopping it will cause a huge swell of resentment from the rice farmers. The perfect political idiot trap.

Edited November 13, 2013 by JRSoul

[waza]

IMF then recommended the government to replace the rice scheme with a more effective measure to support low-income agriculture households, such as targeted cash transfers.

LOL just giving them money is cheaper than the rice scam

[ginjag]

Commerce says rice scheme raises farmers earning, clears debts

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the governments rice pledging scheme helped to increase farmers earnings and clear their debts, though it would inflict loss of over 100 billion baht a year.

Niwatthamlongs assurance of the rice subsidy scheme came after he was asked to comment on recommendation by the International Monetary Fund (IMF) to terminated the scheme and look to other stimulus measures that could enhance economy instead

The commerce minister who is also deputy prime minister said that he has not yet informed of such recommendation from authorities and therefore could not make a comment on it.

However he said that he did not know of which sources the IMF has managed to obtain the information from.

He admitted that the rice pledging scheme had inflicted loss of about 80 billion baht a year on every government in the past, saying that this year was high of over 100 billion baht a year or 20 billion baht more, due to the amount of rice the government bought from farmers was high.

But he insisted that the rice pledging scheme did benefit the farmers because they obtained high revenues that enabled them to pay off their debts

Source: http://englishnews.thaipbs.or.th/commerce-says-rice-scheme-raises-farmers-earning-clears-debts/?utm_source=rss&utm_medium=rss&utm_campaign=commerce-says-rice-scheme-raises-farmers-earning-clears-debts

--Thai PBS 2013-11-13

How do you tell if a Thai politician is lying and bulls****ing ......... He has a pulse!

It is embarrasing to read sometimes. I think over to world news for me.

What small farmer (the actual ones that voted PTP in power) benefitted ???

Because he NEVER quote" benefitted the farmer because they obtained high revenues, enabling them to pay off debts"

This small voter obtained high revenues ?????

I think someone somewhere is bypassing this little voter.

[ramrod711]

IMF said “with the pledging prices about 40% above market prices, it is inevitable for the government to incur losses as long as the scheme remains unchanged.”

Yingluck says people must pay taxes or the government will have no money. I say, who would want to contribute one baht of their hard earned money to help these clowns buy votes so that they can continue to throw away money. Looks like a never ending cycle of incompetence and corruption.

[poohy]

Protestors on every street corner....And now the IMF ..she's not having a very good week is she?

[cornishcarlos]

IMF said “with the pledging prices about 40% above market prices, it is inevitable for the government to incur losses as long as the scheme remains unchanged.”

Yingluck says people must pay taxes or the government will have no money. I say, who would want to contribute one baht of their hard earned money to help these clowns buy votes so that they can continue to throw away money. Looks like a never ending cycle of incompetence and corruption.

The government is not throwing away money !!

Is goes safely into off shore accounts, to be spent wisely at shopping malls around the world

Edited November 13, 2013 by cornishcarlos

[mrtoad]

Protestors on every street corner....And now the IMF ..she's not having a very good week is she?

She is probably totally unaware

[Thait Spot]

I see that Special K has said that Thailand is a special case and should continue as it is.

He also says that the IMF's recommendation to increase the interest rates and raise VAT from 7% to 10% doesn't apply to Thailand because it's special.

[Spare]

Farang. please mind your own business.

[bigbamboo]

Farang. please mind your own business.

Unfortunately for Thailand it's farang they have to go cap in hand to now that the Japanese don't trust the government's budgeting gurus and the Chinese only want to help out with the costs of a railway here provided it's not an expensive high speed route to CM but part of their planned bog standard link through Indo China to Singapore.

[coma]

It is a blatant 'back door' version of socialism. Tax the wealthy minority then give it to the not so wealthy majority. All for a vote of course. But i feel that 40% premiums on rice won't be enough to save this government from falling on its sword.

[jcb2001]

The Perfect Storm is brewing. Protestors, Rice Scheme problems, Amnesty Bill a disaster. What more could PM Yingluck and company ask for? Maybe it's time for Moody's to drop Thailand's credit rating. Watch this Pheu Thai government sink.

[thaimat]

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

Or, she'll tell IMF, exactly as her brother said to the UN Commission on Human rights when they asked him about the deaths during his "War On Drugs": "Mind your own business". Either Takkies would make great straight man (or woman) for a comedy team.

[thaimat]

The Perfect Storm is brewing. Protestors, Rice Scheme problems, Amnesty Bill a disaster. What more could PM Yingluck and company ask for? Maybe it's time for Moody's to drop Thailand's credit rating. Watch this Pheu Thai government sink.

Let's not forget the sterling job they've done with flooding/water management issues.

[thaimat]

Commerce says rice scheme raises farmers’ earning, clears debts

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the government’s rice pledging scheme helped to increase farmers’ earnings and clear their debts, though it would inflict loss of over 100 billion baht a year.

Niwatthamlong’s assurance of the rice subsidy scheme came after he was asked to comment on recommendation by the International Monetary Fund (IMF) to terminated the scheme and look to other stimulus measures that could enhance economy instead

The commerce minister who is also deputy prime minister said that he has not yet informed of such recommendation from authorities and therefore could not make a comment on it.

However he said that he did not know of which sources the IMF has managed to obtain the information from.

He admitted that the rice pledging scheme had inflicted loss of about 80 billion baht a year on every government in the past, saying that this year was high of over 100 billion baht a year or 20 billion baht more, due to the amount of rice the government bought from farmers was high.

But he insisted that the rice pledging scheme did benefit the farmers because they obtained high revenues that enabled them to pay off their debts

Source: http://englishnews.thaipbs.or.th/commerce-says-rice-scheme-raises-farmers-earning-clears-debts/?utm_source=rss&utm_medium=rss&utm_campaign=commerce-says-rice-scheme-raises-farmers-earning-clears-debts

--Thai PBS 2013-11-13

"...high revenues"? "Cleared they're debts"? Which farmers are those? Anyone know a rice farmer who has "high revenues", or has "cleared their debts" from the tiny increase they get from the rice pledging scheme?

[Robby nz]

Lady has just this moment arrived back from Tesco and tells me the same rice she always buys has risen 30 B from the last lot she bought.

The world price is dropping, the traders are buying surplus rice from the farmers cheap so why the increase ?