Thai farmers are not paid yet for their rice sales

[webfact]

Farmers are not paid yet for their rice sales



BANGKOK: -- As the Commerce Ministry says it will sell 1.2 million tons of rice to China today and the Bank for Agriculture and Agricultural Cooperatives is issuing bonds to raise more funds to buy more rice from farmers entering the rice-pledging scheme, farmers in several central and northern provinces said they have not yet received money from the sale of rice to the government.

The complaints were aired by farmers in Nakhon Sawan, Uthai Thani, Ayutthaya, Chai Nat, and Uttaradit.

Farmers said as they were not yet paid for the rice sold to government under the rice-pledging scheme, therefore they would have no money to buy seedlings, fertilizers to begin the new round of planting this year and many were broken.

Prasit Boonchoey, president of Thai Rice Farmers Association, said most farmers who owned their lands now have no more money while some were also indebted. But for farmers who have to rent land to plant rice, he said they would also have no money to pay for the land rents, while landlords would also shift to others who offered higher rents.

Kittisak Chanpaisri, president of Farmers Council of Chiang Mai, said a large number of farmers in the northern provinces have not yet obtained money from their rice sold to government last month.

However he was optimistic that the government was resolving the problem, but warned that if they still did not get the money, protest could happen.

BAAC assistant president Supat Ieawchai, meanwhile, said the bank has so far paid out a total of 500 million baht for rice pledged under the 2013/2014 harvest season from 82 billion baht fund which it was allocated by the Bureau of Budget.

He said that the bank wanted the Ministry of Commerce to speed up selling rice in its stock to get as much as 130 billion baht for use.

He said that the bank needed 140 billion baht to buy the rice in the First Crop from October to February next year of which 11 million tons of rice are expected to come under the pledging scheme.

He said issuance of bonds by the bank, escalating the ministry to sell rice in its stocks was among several channels to raise fund to support the scheme.

He said the Ministry of Commerce has so far repaid 140 billion baht to the bank but the bank has already spent 670 billion baht to implement the pledging scheme while its spending ceiling was capped at 500 billion baht.

Foreign Trade Department director-general Surasak Ruangkrue said the ministry planned to refund the bank 24 billion baht end of next month, and has set target to repay 130 billion baht next year, or 12 billion baht/month, as currently the government was negotiating rice deals with several countries which included ASEAN, China, Middle East and Africa.

He said rice export target for 2013 was still set at 7 million tons.

Source: http://englishnews.thaipbs.or.th/farmers-paid-yet-rice-sales/?utm_source=rss&utm_medium=rss&utm_campaign=farmers-paid-yet-rice-sales

-- Thai PBS 2013-11-20

[jaidam]

The farmers should chill-out. Their boy just won his secret squirrel 2,000,000,000,000 baht borrowing bonanza which has to be spunked before the house is dissolved. After the red elite and nouveau establishmentarians finish buying personal luxuries there should be enough left over to pay for rice from the farmers that voted them into power as promised.

[Showbags]

Maybe its a condition of support?

[bigbamboo]

This rice pit just gets bigger and bigger.

[Thait Spot]

Unbelievable

I guess Moody's will be having kittens

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[ballpoint]

And suddenly there's a whole lot of rural people with no money, and unable to plant their next crop. Just as the call for paid red protestors goes out. What a coincidence.

[TomTao]

Here goes the PTP support base evaporating if the farmers can't get paid and go bust, or is it part of a clever plan to send the farmers broke, then buy thier land and rent it back to them?

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[JRSoul]

"...its spending ceiling was capped at 500 billion baht." and that is G O N E !

Backed by a depreciating asset with high storage costs, over-valued by wishful thinkers. Those bonds will have to offer a really good return.

Edited November 20, 2013 by JRSoul

[Neilly]

However he was optimistic that the government was resolving the problem

Uhhhh...yeah, good luck with that

[Local Drunk]

Duh... The bank's broke.

[coma]

but warned that if they still did not get the money, protest could happen.

I think that goes without saying.

[Les Norton]

This will soon be forgotten come election time and the 500 baht notes are bandied about. That purple paper is just too mesmerizing to resist.

[JRSoul]

This will soon be forgotten come election time and the 500 baht notes are bandied about. That purple paper is just too mesmerizing to resist.

If I was a farmer waiting for payment for my crop, I don't think a B500 vote-buy would fill my heart with joy.

[trevor4]

.

farmers in several central and northern provinces said they have not yet received money from the sale of rice to the government

http://www.youtube.com/watch?v=NJ6xBaZ92uA

Yingluck as Wimpy: I'll have a rice crop grown, for which I will gladly pay you Tuesday.

.

Edited November 20, 2013 by trevor4

[animatic]

Well this would explain why PTP is in panic mode and rushed so hard to get Dear Leader his free pass.

The fan and the effluent are getting closer and closer.

[whybother]

And now they're selling bonds to pay for the rice.

[khwaibah]

From Kap Choeng to Prasat this Monday 5 rice mills closed,there were some upset farmers ready to burn Bangkok. Tuesday (yesterday) our local rice mill reopened, it was pandemonium from 6 am till midnight last night. My wife was doing back flips she got 18 baht per kilo. But she has to wait 2 weeks for the check. If she wanted cash on the spot only 11.20 per kg.

Edited November 20, 2013 by khwaibah

[Valentine]

Sounds like the bank is having a serious liquidity problem although one feels the government cannot let it go bust as millions of rural people could lose their savings.

[ramrod711]

He said that the bank wanted the Ministry of Commerce to speed up selling rice in its stock to get as much as 130 billion baht for use.

Sell to who? The world market price for rice is lower than the price paid to the farmers, the government has been warned about dumping, maybe they can trade it to the Chinese for trinkets.

[fab4]

And suddenly there's a whole lot of rural people with no money, and unable to plant their next crop. Just as the call for paid red protestors goes out. What a coincidence.

Of course they knew that the dems would lose their collective minds and demonstrate in the street, through their special powers of knowallness, (demonstrated a lot on these boards) and stalled the farmers payments until this day, just in time for a rally in Bangkok. Tin foil hat time...................

[givenall]

The farmers should chill-out. Their boy just won his secret squirrel 2,000,000,000,000 baht borrowing bonanza which has to be spunked before the house is dissolved. After the red elite and nouveau establishmentarians finish buying personal luxuries there should be enough left over to pay for rice from the farmers that voted them into power as promised.

Also have to wait till the big boys get their cuts and you get pay if any left

[Mampara]

The farmers should chill-out. Their boy just won his secret squirrel 2,000,000,000,000 baht borrowing bonanza which has to be spunked before the house is dissolved. After the red elite and nouveau establishmentarians finish buying personal luxuries there should be enough left over to pay for rice from the farmers that voted them into power as promised.

enough is never enough, this is possibly one of the many reasons as to why the loan is so badly needed, at the moment it seems as they are 'pinching from Paul to pay Peter'

[Robby nz]

As it says here not only have they paid out to the 500 billion cap but have paid out a total of 670 billion with 140 billion returned from Govt.

Which means they have paid out 30 billion above the cap.

Bond issue will be for 75 billion according to other sources but they need 140 billion for the current crop.

Also says they are going to have to pay above market rates to sell the bonds.

[technologybytes]

And now they're selling bonds to pay for the rice.

Selling Bonds to get money is what governments do...

[whybother]

And now they're selling bonds to pay for the rice.

Selling Bonds to get money is what governments do...

Yes, it is. But they have been borrowing money from the banks to pay for the rice. Now the banks don't have the money to lend them, so the government are raising it elsewhere.

[ballpoint]

And suddenly there's a whole lot of rural people with no money, and unable to plant their next crop. Just as the call for paid red protestors goes out. What a coincidence.

Of course they knew that the dems would lose their collective minds and demonstrate in the street, through their special powers of knowallness, (demonstrated a lot on these boards) and stalled the farmers payments until this day, just in time for a rally in Bangkok. Tin foil hat time...................

Did I say they had? I merely mentioned it is a coincidence that people on other threads were saying how red shirt numbers would be down due to the timing of the rice harvest, but now we find a whole group of people with no rice to plant, let alone harvest, who will therefore have time on their hands, and a need for fast cash. I suppose it will also save the money the government would have spent on buying the rice too, and mean less of a stockpile this year? A win for the PTP all around then eh?

And no condemnation of these rural people being ripped off by the government? Better be careful, or some may start doubting your claims to be for whatever is in the interest of the poor.

Since you brought it up, remind me again why the Dems "lost their collective minds"? Wasn't it because no Isaan constituent member of the PTP actually followed the wants of their electorate and voted against a bill that gave amnesty to Abhisit and Suthep? Yet again, the party famous for allegedly being on the side of the poor, ignored the wishes of the people. That's twice in quick succession. What a coincidence.

[Katipo]

This will soon be forgotten come election time and the 500 baht notes are bandied about. That purple paper is just too mesmerizing to resist.

If I was a farmer waiting for payment for my crop, I don't think a B500 vote-buy would fill my heart with joy.

I know, you'd think. They don't seem to ever learn though. It's mystifying.

[Thait Spot]

I guess the red shirt farmers will have to make do with IOUs

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[GAZZPA]

I really feel for the farmers here. They may have been paid to vote for the ruling party but they could not have predicted the fiasco to follow. Sooner or later this will come crashing down, there is no other way for it to go, and then who will suffer? it wont be the rich and greedy who have profited from trashing Thailands number 1 global export position, it will be the farmers who will suffer. it will eventually become clear what the real demand is for Thai rice since losing so much trade, and when the real demand meets the farmers output rather then being masqueraded by the government purchase scheme then people will really suffer.

Very sad and a real case of the poor taking the hit for stupid decisions made by the rich, driven by nothing more the greed,,, they should be ashamed of themselves and be apologising to the people of Thailand,, never happen of course.

[greenwoodsolar]

Let us also not forget the millions of tons of rice missing from the stores. They will be a hard sell at any price.