Foreign banks brand Thailand's rice-pledging scheme as 'risky'

[webfact]

Foreign Banks Brand Rice Program As 'Risky'

By Khaosod Online



BANGKOK: -- Many foreign banks and other financial institutions have expressed their concern over the possible collapse of Thailand′s rice-pledging scheme, according to a senior economist at the Knowledge Institute of Thailand (KNIT).

Mr. Somphon Iswilanont said the International Monetary Fund (IMF) has also warned the Thai government last week that the rice mortgage program initiated under Prime Minister Yingluck Shinawatra is a "major risk" for the nation′s economy.

The IMF added that should the program end in failure, its economic fallout will affect other countries in the region as well, Mr. Somphon said.

Moreover, according to Mr. Somphon, the failure to release the commodity of the Ministry of Commerce had additionally caused the lack of revenue for the rice-pledging scheme within the last two years. So far, the government had spent ฿680 billion in paying the farmers for their rice, and had run nearly ฿ 500 billion over budget.

In 2013, the scheme started on 1 October had so far received 14 million tonnes of rice, 11 million tonnes overstock, to top the 18 million tonnes that is already in store.

Meanwhile, many farmers have not yet been paid by the scheme, said Mr. Somphon.

However, Mr. Niwatthamrong Boonsongpaisan, Deputy Prime Minister and Commerce Minister, insisted that the government would carry on with the scheme.

Mr. Niwatthamrong claimed he had assured the farmers they will get paid by the end of this week, following the Commerce Minister’s discussion with Finance Minister, Mr. Kittirat Na Ranong.

Source: http://www.khaosod.co.th/en/view_newsonline.php?newsid=TVRNNE5EYzJOalF6T1E9PQ==

-- KHAOSOD English 2013-11-19

[Pimay1]

Foreign banks no understand Thailand.

[waza]

I think its imminent collapse would be welcome

[Curt1591]

With all the questionable investments foreign banks make, They definitely know what their talking about!

[Bluespunk]

"Foreign Banks Brand Rice Program As 'Risky'"

Risky? Risky? They're being nice of that's what they think. Ill conceived, criminally stupid, economically inept, riddled with corruption, incompetent, all would be a more accurate description.

Edited November 18, 2013 by Bluespunk

[Thai at Heart]

Odd description. They didn't have an opinion about the policy before but now they dub it risky as though they only just discovered it?

Maybe they always thought it was risky but no one bothered to listen to them?

[PaullyW]

Falang banks 'dun undaasataaan Thai-net'

[Ricardo]

Ministers scurry to avoid paying their bills, the poor rice-farmers remain unpaid, as does the government-owned bank.

What a brilliant idea this all was !

[Robby nz]

Meanwhile the Govt is still "Mulling" the BAAC request to borrow 140 billion to fund the 270 billion budget set for the Govt's rice pledging for this years crop.

[Thainy Tim]

The thing is, they need to attempt to keep up this illusion that it is all working nicely. This was probably the biggest populist vote buying agenda on their election manifesto when these deadbeats got elected.

Thaksin and Yingluck cobbled this together out of pure and typical Thailand insular thinking and their usual superiority complex. Their plan was of course to buy the popular vote with it, and with Thailand at the time being number one exporter of rice, would deliberately engineer a global rice shortage by stockpiling and driving up the price.

It was ludicrous to assume that they were the only country that has rice for sale. They got greedy and thought they could push the price back up to the levels of 2008 when there was a very real global shortage. Then cash in on the hiked price to cover the vote money.

As usual, it ended with an epic backfire.

Because of their overly inward thinking, they failed to gather 'intelligence'. After the 2008 rice famine in the east, almost all rice producing countries started their own rice stockpiling system, not only to cover its own domestic needs so it didn't need to import it an massively inflated prices, but also have an extra stock to trade.

These famines are few and far between. The next one has already been covered globally. So this scheme was a failure before it even started and now the government need to keep it going because they need it in place for the next election which could be just around the corner, or risk losing all those votes.

They took one of Thailand's strongest industries and floored it, not only are they losing money hand over fist, but they have created massive damage to their export capabilities, customers rightly went elsewhere and never came back. Once they close this scheme, the farmers will realize that the demand for there rice has been massacred.

They have already shit on the rubber farmers, and now the rice farmers, and next I can see the palm oil farmers getting shafted after the government urged many in the south to switch to palm oil in an effort to make Thailand.... you guessed it.... 'The hub of' palm oil production.

Edited November 19, 2013 by Thainy Tim

[virtualtraveller]

The best thing we can all do is sit back and watch this collapse unfold, it will be the end of Peua Thai's electoral party. This is the healthiest and most likely means of getting rid of the Thaksin nightmare, let him engineer it himself. The BAAC is weeks away from closing it's doors with empty coffers and nowhere to raise money. Farmers will be peeved no doubt.

[bigbamboo]

This rice scam is going to leave Thaksin with ego all over his face.

I doubt even Hun Sen would employ him now.

[Valentine]

The best thing we can all do is sit back and watch this collapse unfold, it will be the end of Peua Thai's electoral party. This is the healthiest and most likely means of getting rid of the Thaksin nightmare, let him engineer it himself. The BAAC is weeks away from closing it's doors with empty coffers and nowhere to raise money. Farmers will be peeved no doubt.

There must be huge numbers of people in the countryside with their savings in BAAC. It would be a catastrophe if they went bankrupt.

Edited November 19, 2013 by Valentine

[Thai at Heart]

The best thing we can all do is sit back and watch this collapse unfold, it will be the end of Peua Thai's electoral party. This is the healthiest and most likely means of getting rid of the Thaksin nightmare, let him engineer it himself. The BAAC is weeks away from closing it's doors with empty coffers and nowhere to raise money. Farmers will be peeved no doubt.

There must be huge numbers of people in the countryside with their savings in BAAC. It would be a catastrophe if they went bankrupt.

That's the kicker. Ptp can't let them go bust. There could be a run on the bank soon. I for one will be telling relatives to pull any cash they have.

[coma]

Time to ready the foriegn cash reserves to buy the baht when the ar$e falls out of it like in 1997.

[Thai at Heart]

Time to ready the foriegn cash reserves to buy the baht when the ar$e falls out of it like in 1997.

That's not likely to happen. They are in a much better position this time around.

[eddie61]

I may finally get a chance at the plot of land that the farmer now wants to sell for 300,000 baht a rai

[oxo1947]

"Foreign Banks Brand Rice Program As 'Risky'"

Risky? Risky? They're being nice of that's what they think. Ill conceived, criminally stupid, economically inept, riddled with corruption, incompetent, all would be a more accurate description.

Yes its not anywhere as sound as the schemes the Foreign banks where pushing in 2006-7......that was real responsible stuff.

I do think the rice scheme is ill conceived and stupid---- but quoting the Foreign banks as a yard stick--------Kettle Pot Black ..etc

[Artisi]

The thing is, they need to attempt to keep up this illusion that it is all working nicely. This was probably the biggest populist vote buying agenda on their election manifesto when these deadbeats got elected.

Thaksin and Yingluck cobbled this together out of pure and typical Thailand insular thinking and their usual superiority complex. Their plan was of course to buy the popular vote with it, and with Thailand at the time being number one exporter of rice, would deliberately engineer a global rice shortage by stockpiling and driving up the price.

It was ludicrous to assume that they were the only country that has rice for sale. They got greedy and thought they could push the price back up to the levels of 2008 when there was a very real global shortage. Then cash in on the hiked price to cover the vote money.

As usual, it ended with an epic backfire.

Because of their overly inward thinking, they failed to gather 'intelligence'. After the 2008 rice famine in the east, almost all rice producing countries started their own rice stockpiling system, not only to cover its own domestic needs so it didn't need to import it an massively inflated prices, but also have an extra stock to trade.

These famines are few and far between. The next one has already been covered globally. So this scheme was a failure before it even started and now the government need to keep it going because they need it in place for the next election which could be just around the corner, or risk losing all those votes.

They took one of Thailand's strongest industries and floored it, not only are they losing money hand over fist, but they have created massive damage to their export capabilities, customers rightly went elsewhere and never came back. Once they close this scheme, the farmers will realize that the demand for there rice has been massacred.

They have already shit on the rubber farmers, and now the rice farmers, and next I can see the palm oil farmers getting shafted after the government urged many in the south to switch to palm oil in an effort to make Thailand.... you guessed it.... 'The hub of' palm oil production.

.

Without checking the facts, this looks and sounds like a pretty good synopsis on the debacle perpetrated on the poor farmers in the self- interest of a few, namely the fugitive and his brown-nosing acolytes.

Edited November 19, 2013 by Artisi

[PaullyW]

"Foreign Banks Brand Rice Program As 'Risky'"

Risky? Risky? They're being nice of that's what they think. Ill conceived, criminally stupid, economically inept, riddled with corruption, incompetent, all would be a more accurate description.

Yes its not anywhere as sound as the schemes the Foreign banks where pushing in 2006-7......that was real responsible stuff.

I do think the rice scheme is ill conceived and stupid---- but quoting the Foreign banks as a yard stick--------Kettle Pot Black ..etc

So, because they were wrong once, they must be wrong again? And, had they been correct, they would then have to be correct this time? Is that the logic you're suggesting here?

So then we must find someone who has never been wrong and only their opinions will be trustworthy?

Edited November 19, 2013 by PaullyW

[GeorgeO]

Time to ready the foriegn cash reserves to buy the baht when the ar$e falls out of it like in 1997.

That's not likely to happen. They are in a much better position this time around.

But are they? I personally believe that the deficits that the government has owned up to from their various populist policies will prove to be merely the tip of the iceberg. When they are finally ousted and an audit of their time in office is carried out, the final bill may prove to be ruinous for this country.

[schondie]

Risky? That's like saying a glass full of deadly poison may lead to a stomach upset.

[coma]

Time to ready the foriegn cash reserves to buy the baht when the ar$e falls out of it like in 1997.

That's not likely to happen. They are in a much better position this time around.

But are they? I personally believe that the deficits that the government has owned up to from their various populist policies will prove to be merely the tip of the iceberg. When they are finally ousted and an audit of their time in office is carried out, the final bill may prove to be ruinous for this country.

Right !

[TroyT]

For the people of LOS to recognise what is really going on would truly be a fairytale ending

Edited November 19, 2013 by TroyT

[winstonc]

blimey its only tuesday.not a very good start to the week is it..good feel the pain ..you so deserve the hatred being spat in your direction..

Edited November 19, 2013 by winstonc

[GentlemanJim]

Foreign Banks Brand Rice Program As 'Risky'

Meanwhile in a closely related story, as Thailand hosts the World 'stating the bleeding obvious and understatement of the year' competition, the current three front runners are entries from the IMF and two foreign banks.

[Baerboxer]

Ministers scurry to avoid paying their bills, the poor rice-farmers remain unpaid, as does the government-owned bank.

What a brilliant idea this all was !

For those that have made a tidy sum of money out of this, it was and still is a brilliant idea !

Unfortunately its not the farmers, tax payers or Thai people that have and will benefit.

[allan michaud]

Time to ready the foriegn cash reserves to buy the baht when the ar$e falls out of it like in 1997.

That's not likely to happen. They are in a much better position this time around.

But are they? I personally believe that the deficits that the government has owned up to from their various populist policies will prove to be merely the tip of the iceberg. When they are finally ousted and an audit of their time in office is carried out, the final bill may prove to be ruinous for this country.

Agreed, all the 'white lies' they continue to tell will come how to roost sooner or later. Since the rice scam started I have been saying this is largely about destroying the economy. Thaksin made a fortune in 1997 through advanced notice of the Baht's collapse and I firmly believe that is what he wants to do again as most of his money is now offshore. He could probably buy Thailand if it all goes to plan.

[SICHONSTEVE]

Ministers scurry to avoid paying their bills, the poor rice-farmers remain unpaid, as does the government-owned bank.

What a brilliant idea this all was !

.....and we all know whose brain child it was!!!!

Do some people really want him back? He has been a disaster for Thailand in every conceivable way imaginable and its about time the Shinawatra family was chucked out of Thailand for good, never to return!!

[janpharma]

Farmers will get paid? Never...Corruption will take over again...As usual...