IMF takes aim at Yingluck’s rice-pledging scheme

[greg71]

The finance minister needs to go back to maths class if he think this is sustainable.

[chainarong]

Every man and he's dog has taken a swipe at the rice- pledging scheme, the only one's who don't seem to care are the recipients , true believers and the PTP.

[ezzra]

One thing is for sure, Yingluck is not Jewish, buying high and selling low, ( or not selling at all

in this case)

[klauskunkel]

IMF doesn't understand Thainess

[PeterSmiles]

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the government’s rice pledging scheme helped to increase farmers’ earnings and clear their debts

If that was true, I would think that public debt would decline instead of rise to previous unknow levels

http://www.thaivisa.com/forum/topic/675653-thailand-august-public-debts-at-4463-of-gdp/

BANGKOK, Oct 19 – Thailand’s public debt in August was Bt5.3 trillion, or 44.63 per cent of gross domestic product (GDP), according to a senior Finance Ministry official report.

[Prbkk]

Not only that....IMF caused the 1997 crash. All Thais know that

IMF doesn't understand Thainess

[PeterSmiles]

Not only that....IMF caused the 1997 crash. All Thais know that

IMF doesn't understand Thainess

Yep, and Thaksin paid the IMF back out of his own pocket.

[nong38]

How about a beer and wine pledging scheme, that would be much more popular as for the current scheme, "where did all that rice come from and where did all that money go?!

Thailand knows

[tragickingdom]

Actually the rice pledging scheme is an easy target, the IMF aims also at the even far more expensive fuel subsidies for the Thai industry, but than again, that is a pet project of the opposition so not really interesting to highlight on a forum invested by the color yellow.

[CantSpell]

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.

And that the IMF doesn't understand how much the rice scheme has helped increasing the public spending...

At Yingluck favorite shopping mall and ...IN DUBAI

And we all know if would not say another "little white lie"...

Edited November 13, 2013 by CantSpell

[SOTIRIOS]

...stimulus measures...there's a euphemism if I ever heard one.....

[JRSoul]

Actually the rice pledging scheme is an easy target, the IMF aims also at the even far more expensive fuel subsidies for the Thai industry, but than again, that is a pet project of the opposition so not really interesting to highlight on a forum invested by the color yellow.

Do you really think the fuel subsidies, which this government has had two and a half years to change, are "far more expensive" than the rice scam? How many billion baht per year are we talking about Einstein? Feel free to give us the figures, backed by links, and highlight it to your hearts content.

[Baerboxer]

Actually the rice pledging scheme is an easy target, the IMF aims also at the even far more expensive fuel subsidies for the Thai industry, but than again, that is a pet project of the opposition so not really interesting to highlight on a forum invested by the color yellow.

Boring - change the issue, divert from the topic, blame the dems.................... nobody tell you 2 wrongs don't make a right ? Any chance of an on topic comment ? Defending the regime's brilliant rice pledging scheme ? Thought not.

It's lost billions, fraught with corruption, has resulted in the severe loss of Thailand's position in world rice exports, delivered little if anything to the farmers, but has enriched the chosen ones.

Of course, it's another flagship idea from the caddie of caddies, the brilliant one - Thaksin thinks, PTP acts and behold the results are there to be seen.

(Well, almost seen because the regime won't release the real figures - too shocking perhaps ?)

[mrtoad]

Farang. please mind your own business.

Poor troll attempt.

[GarryP]

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.

The problem is that many of the wealthy minority are not paying their taxes as they should be. It is the middle class tax payer who is subsidizing this joke of a scheme, but then the PTT does not rely on the middle income vote so does not care that they are not happy with this schem. Perhaps, after the amnesty bill was put on hold for 180 days, the protesters should have started focusing on untenable policies/projects/ etc such as the rice pledging scheme, the water managment farce, etc.

[shaurene]

The Thai government has to the IMF to more or less get stuffed, we know what we are doing (I think)

It was a no go from the beginning, I would also suggest the new tourist take of 500 Baht per head is aimed at filling the rice coffers.

As Spok would say their reasons to do this 500 is not logic.

[siampolee]

tragickingdom post # 37

Actually the rice pledging scheme is an easy target, the IMF aims also at the even far more expensive fuel subsidies for the Thai industry, but than again, that is a pet project of the opposition so not really interesting to highlight on a forum invested by the color yellow.

If you had read the I.M.F. article and understood it you would have noticed that the matter of fuel subsidies was mentioned and it was suggested power subsidies should be phased.

No either you are ignoring the truth of the matter or you didn't understand that which you may or may not have read .The fuel subsidies were introduced by a Thaksin influenced administration and to date said power subsidies have remained untouched.

The power subsidy is the lesser of the two evils as it should help to lower the costs of industrial production and the transport industry thus unemployment is kept at bay.

The only change a Thaksin connected administration made was the halting of free water supply if your water bill was below a certain level each month and also the tariff free electricity consumption was phased out .

Both those measures hit the lowest paid sector of the community , indeed a fine example of how Thaksin and his ilk actually cared for those at the bottom of the income ladder.

[dru2]

Actually the rice pledging scheme is an easy target, the IMF aims also at the even far more expensive fuel subsidies for the Thai industry, but than again, that is a pet project of the opposition so not really interesting to highlight on a forum invested by the color yellow.

Do you really think the fuel subsidies, which this government has had two and a half years to change, are "far more expensive" than the rice scam? How many billion baht per year are we talking about Einstein? Feel free to give us the figures, backed by links, and highlight it to your hearts content.

He has no idea. Don't hold your breath waiting for an informed reply.

[mrtoad]

Actually the rice pledging scheme is an easy target, the IMF aims also at the even far more expensive fuel subsidies for the Thai industry, but than again, that is a pet project of the opposition so not really interesting to highlight on a forum invested by the color yellow.

Do you really think the fuel subsidies, which this government has had two and a half years to change, are "far more expensive" than the rice scam? How many billion baht per year are we talking about Einstein? Feel free to give us the figures, backed by links, and highlight it to your hearts content.

He has no idea. Don't hold your breath waiting for an informed reply.

There is more chance of Chalerm being beheaded than getting a sensible answer from TVs Thaksin Trolls.

[winstonc]

only one brave red on this topic.maybe the brighter ones know when not to get involved..as john cleese said ....theres always one...and please no-one accuse me of being a dem either...if anyone,s got there pinkies in the till they all go down in my book...your voted in on the trust of the electorate dont take the piss..

[belg]

IMF no understan thainess

rice scam & flood scam = money for corrupt people to buy big mansions, mercedes, mia nois, etc...........

[Neilly]

Farang. please mind your own business.

And your educated comments have been well noted....off to the ignore list with you

[Spare]

Philippines is short of food.

Time to raise Thai rice prices.

[ratcatcher]

Philippines is short of food.

Time to raise Thai rice prices.

Maybe Mr Thaksin out of the goodness of his heart, might have ordered Yingluck to donate & ship a few hundred thousand tons to the PPI to help feed the desperate residents of their ASEAN partner. That would have shown a humanitarian side.

[Naroge]

IMF has apparently not understood how this rice pledging scheme is supposed to work. Didn't our Dear Leader say that as soon as Thailand pulls out these tons of rice from the world market, then the world market price on rice will increase and Thailand should be able to sell with a profit. Just wait ................. Or.................

[dru2]

I just posted this elsewhere, but on reflection I think it makes more sense here. Apologies for double posting:

With reference to the rice buying scheme, let's not forget Thaksin's justification that: 'the government led by his sister Yingluck should continue the rice subsidy scheme for two or three years... Thaksin also urged the government to increase rice stocks by 20 million to 40 million tonnes over the next few years, as the global price would go up due to the possibility of some kind of natural disaster'.

Well, now we have a natural disaster with an estimated 11 million people in the Philippines ravaged by a super typhoon, millions without food and water, an estimated half of Leyte's rice crop wiped out. Yet to date the Thai government has made no suggestion that some surplus rice might be transferred FREE to their Filipino ASEAN brothers...

Instead it seems a most opportune time for this grasping, despotic, small-minded man to offer to sell the surplus rice crop at above market values - maybe the Americans or the EU will pay the cost? After all, that is what he explicitly suggested in his justification for the rice buying scheme. Buy with Thai tax payers money, wait for natural disaster, reap a high return by profiteering at the expense of those suffering from a natural disaster, and to hell with morality and common humanity.

Step up, Thaksin, show your mettle! The world will surely be impressed.

But seriously, let's hope the more high-minded and generous nature of the great majority of Thai people of all political colours will shine through and eclipse the evil, self-centred nature of one man.

Now is surely the time for Thailand to make a substantial gesture towards the Philippines. It would win considerable international kudos... and if they don't the rice will rot anyway.

[AndersM]

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

Also what about the credit cards that were given to the farmers.

What is the interest rate on them.

[PaullyW]

I just posted this elsewhere, but on reflection I think it makes more sense here. Apologies for double posting:

With reference to the rice buying scheme, let's not forget Thaksin's justification that: 'the government led by his sister Yingluck should continue the rice subsidy scheme for two or three years... Thaksin also urged the government to increase rice stocks by 20 million to 40 million tonnes over the next few years, as the global price would go up due to the possibility of some kind of natural disaster'.

Well, now we have a natural disaster with an estimated 11 million people in the Philippines ravaged by a super typhoon, millions without food and water, an estimated half of Leyte's rice crop wiped out. Yet to date the Thai government has made no suggestion that some surplus rice might be transferred FREE to their Filipino ASEAN brothers...

Instead it seems a most opportune time for this grasping, despotic, small-minded man to offer to sell the surplus rice crop at above market values - maybe the Americans or the EU will pay the cost? After all, that is what he explicitly suggested in his justification for the rice buying scheme. Buy with Thai tax payers money, wait for natural disaster, reap a high return by profiteering at the expense of those suffering from a natural disaster, and to hell with morality and common humanity.

Step up, Thaksin, show your mettle! The world will surely be impressed.

But seriously, let's hope the more high-minded and generous nature of the great majority of Thai people of all political colours will shine through and eclipse the evil, self-centred nature of one man.

Now is surely the time for Thailand to make a substantial gesture towards the Philippines. It would win considerable international kudos... and if they don't the rice will rot anyway.

Great post, but you may come to find that 'the more generous nature of the great majority of Thai people of all political colours' is not particularly existent outside of the Thai-circle. How many cases of generosity by Thais to non-Thais are yo aware of? I don't think Thais are very well known for such generosity. And, as for colours, you may find again that the Yellows (mostly middle & upper) are far less generous than their generally less well off Red countrymen.

Not a ruin your good post, but I wanted to point out what I think is a false hope.

[marcusd]

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

oh indeed the IMF does. That's why Thailand can raise as many bills as they like to RAISE LOANS OVERSEAS and why no one lendss the money to them. Other countries look at IMF guidelines

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[marcusd]

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

no... I think the IMF knows where the rice scheme money goes... So by giving money DIRECT to farmers certain officials....310 of them ... Are cut out

Ps that is the number of parliament. People who voted for the amnesty bill

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