Thai bank clarifies why it has no money to pay rice farmers

[webfact]

Bank clarifies why it has no money to pay farmers



BANGKOK: -- The Bank for Agriculture and Agricultural Cooperatives yesterday clarified farmers of its late payment for their rice that it is lacking enough quiddity but assured that they all will be paid in 45 days.

BAAC president Luck Wajananawat admitted today of the delayed payment of more than a month for the second crop rice pledged under the government’s rice pledging scheme this year following recent complaints from farmers in the north.

He said the bank has earmarked only 20 billion baht for the scheme, but farmers have so far sold rice amounted to over 30 billion baht to the government.

Therefore, he said, it has no sufficient liquidity to pay all the farmers who pledged rice under the scheme.

However he said that the bank has now advised all staff to go to see the farmers and to clarify them urgently the reason and also to assure them that the payment will soon be made in the next one and a half month.

Source: http://englishnews.thaipbs.or.th/wp-content/uploads/2013/11/150580-imagejpeg-221729-wpcf_728x413.jpg

-- Thai PBS 2013-11-22

[Local Drunk]

45 days...

[pedro01]

lack of liquidity?

they mean they got no money, right?

[slapout]

Some have been waiting 2 or 3 weeks already, over 2 months to fast while awaiting the promise, "We make you rich". Let the people starve while we (politicans) eat high on the hog at taxpayer expense.

I guess the PM can refer to this as 'fasting' for the good of brother. This may be the straw that breaks the back, Deprive a Thai of money to buy food an beserk comes to mind.

Edited November 21, 2013 by slapout

[whybother]

Cool. The government has run out of money to pay the farmers. Does that mean they need to borrow more money (on top of the 350 billion baht for flood project, and 2.2 trillion baht for infrastructure projects).

[Thait Spot]

The Thai people don't have a functioning government.

They have a pantomime

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[sscsamui]

Will the bank pay late fees and interest for the 45 days?…. No

[CraigSchuler]

See what happens when the farmers owe them money!

[Mosha]

"However he said that the bank has now advised all staff to go to see the farmers and to clarify them urgently the reason and also to assure them that the payment will soon be made in the next one and a half month."

BAAC may have some job vacancies after those visits

[jaltsc]

"Therefore, he said, it has no sufficient liquidity to pay all the farmers who pledged rice under the scheme."

Long on promises (AKA: BS). Short on cash.

[NeverSure]

"it is lacking enough quiddity"

Seriously. Is this a hint that they want help from the Brits? (It literally says quiddity under the picture.)

Edited November 22, 2013 by NeverSure

[waza]

"The government should be able to release more rice from stockpiles next year. Now less than 7 million tonnes remains in warehouses from a total of 10 million tonnes," Commerce Minister Niwatthumrong Boonsongpaisan said yesterday. http://www.thaivisa.com/forum/topic/683160-thai-govt-expects-more-rice-deals-with-china-in-2014/

Bangkok has spent 680 billion baht on rice since October 2011, but has only sold enough to get 156 billion baht to pay the BAAC for the loans that fund the scheme. http://www.reuters.com/article/2013/11/19/thailand-rice-idUSL4N0J205I20131119

That leaves them 524 billion in debt for 7 million ton of rice in storage, that's 74,857 baht per ton! no wonder they have no liquidity.

BANGKOK, Nov 19 (Reuters) - Thailand scrambled on Tuesday to fund a rice subsidy scheme that has not paid out to farmers since Oct. 1, a delay that risks alienating key supporters of Prime Minister Yingluck Shinawatra.

Edited November 22, 2013 by waza

[Songhua]

"it is lacking enough quiddity"

Seriously. Is this a hint that they want help from the Brits? (It literally says quiddity under the picture.)

Isn't that the game they play on Harry Potter?

[Ricardo]

Cool. The government has run out of money to pay the farmers. Does that mean they need to borrow more money (on top of the 350 billion baht for flood project, and 2.2 trillion baht for infrastructure projects).

Yes, either the government has to borrow the money itself, although for unknown reasons they seem to prefer to get the (government-owned) BAAC to borrow it instead, or it has to sell more of the warehouse-stocks & faster, so that the payments (at whatever price it fetches) flow back to the bank to restore its liquidity.

Either way this whole mess suggests that the government is incapable of simple cashflow-forecasting, the need for extra finance ought to have been identified and solved, much sooner than this ! What On Earth have the Commerce Ministry & the Finance Ministry been playing-at ?

No wonder BAAC is making it embarrassingly clear, that this mess is nothing to do with them, they don't want to volunteer to 'take a bullet' for their incompetent masters !

Yay for Red-Finance & Thaksinomics !

They're showing themselves incapable of running a piss-up in a brewery, let alone a rice-subsidy scheme in what was the top rice-exporting nation in the World, just a couple of years ago !

Edited November 22, 2013 by Ricardo

[coma]

Maybe they plan on ciphering it off out of the two trillion baht they are trying to borrow for the government's infrastructure mega projects. It is a shame that, that bill also seems to be dead in the water. They may find themselves waiting a little longer that 45 days for payment.

[Tatsujin]

"it is lacking enough quiddity"

Seriously. Is this a hint that they want help from the Brits? (It literally says quiddity under the picture.)

Classic. The day the Thai's admit they need help from ANYONE for anything however is the day it snows in Bangkok.

[zydeco]

When you go to the bank to get your money, and the bank doesn't have it, isn't this called a "Bank failure?"

[Crushdepth]

Where are redneck TV friends who were defending this retarded scheme? Seem to have gone all quiet. Again.

[bkkgriz]

Anyone want to take bets that there will be no money in 45 days. Just wait another 90 days farmers. I've been played like this when people have owed me money.

[AyG]

See what happens when the farmers owe them money!

Actually, nothing. One of Big Brother's previous policies was to lend scadloads of money to farmers and then do nothing when they failed to keep up the repayments.

[Thait Spot]

"it is lacking enough quiddity"

Seriously. Is this a hint that they want help from the Brits? (It literally says quiddity under the picture.)

It does indeed.

It also says it will "clarify farmers" - is that like butter?

[GentlemanJim]

"He said the bank has earmarked only 20 billion baht for the scheme, but farmers have so far sold rice amounted to over 30 billion baht to the government."

Does that mean only 30% of the farmers are waiting for money then and the rest have been paid already? Answers on the back of a postage stamp

[Sunisalom]

lack of liquidity?

they mean they got no money, right?

Both liquidity or equity, either would have sufficed.

quid·di·ty (ˈkwidətē )

noun

Philosophy

noun: quiddity

1. the inherent nature or essence of someone or something.

And so, the author uses a totally inept word, a philosophical word with absolutelty nothing to do with finance, trying to be verbose. How many times does this happen in The Nation?

Sunisa.

[Asiantravel]

lack of liquidity?

they mean they got no money, right?

aw........they can just borrow it......oh wait

[worgeordie]

Maybe the farmers best friend,Big Brother will help out with his own money !

No I don't think so,use the Govt. money to buy votes,then when the Govt.

runs out of cash,everybody is on their own.

regards Worgeordie

[JoeThePoster]

Bank clarifies why it has no money to pay farmers

So, money really doesn't grow on trees.

[Katipo]

45 days is a very long time for a farmer not to get money. Often they are living month to month. Expect debt levels to rise. This will not go down well at all.

[kotsak]

It's getting better by the day..

[rametindallas]

"The government should be able to release more rice from stockpiles next year. Now less than 7 million tonnes remains in warehouses from a total of 10 million tonnes," Commerce Minister Niwatthumrong Boonsongpaisan said yesterday. http://www.thaivisa.com/forum/topic/683160-thai-govt-expects-more-rice-deals-with-china-in-2014/

Bangkok has spent 680 billion baht on rice since October 2011, but has only sold enough to get 156 billion baht to pay the BAAC for the loans that fund the scheme. http://www.reuters.com/article/2013/11/19/thailand-rice-idUSL4N0J205I20131119

That leaves them 524 billion in debt for 7 million ton of rice in storage, that's 74,857 baht per ton! no wonder they have no liquidity.

BANGKOK, Nov 19 (Reuters) - Thailand scrambled on Tuesday to fund a rice subsidy scheme that has not paid out to farmers since Oct. 1, a delay that risks alienating key supporters of Prime Minister Yingluck Shinawatra.

Bloomberg The stockpiles probably total 16 million metric tons

http://www.bloomberg.com/news/2013-11-21/thai-rice-hoard-at-record-seen-hurting-prices-amid-global-glut.html

[GentlemanJim]

Maybe the farmers best friend,Big Brother will help out with his own money !

No I don't think so,use the Govt. money to buy votes,then when the Govt.

runs out of cash,everybody is on their own.

regards Worgeordie

Actually Worgeordie that is not beyond the realms of potential reality. Withhold the money now that there is a crisis, wait until the farmers are desperate and the Government need to mobilize the red shirts and then Big Brother the saviour comes in and gives 10 billion of 'his own money' (A fraction of what Shinclan have thieved over the last two years), regains the begrudged trust and gratitude of the farmers and off we go - round 2.