Rice scheme must be depoliticised and tackled head-on: Thai editorial

[webfact]

EDITORIAL
Rice scheme must be depoliticised and tackled head-on
The Nation

BANGKOK: -- The street protests obscure an issue that may be more significant: what is rice pledging doing to farmers and the country's long-term finances?

It doesn't matter how much longer the current political crisis lingers as far as the Yingluck government's controversial rice scheme is concerned.

The trouble on the streets is masking another even more pressing issue.

Information provided by the opposition Democrats during the censure debate is damning and, due to the fact the government failed to adequately respond to it, questions about the rice policy may outlast an event that looks highly important but is in fact not as significant.

Will the Pheu Thai powers-that-be manage to hold on or come back after a new election? That is the question of the hour. After two days of censure debate, though, the future of ruling politicians should be something secondary. Thailand needs to take a long hard look at its so-called backbone - the farmers - and decide what to do.

Is the rice price-pledging policy a good one? Is it just a good concept with no way to effectively implement it? Or is it simply a bad scheme that destroys market mechanisms, undermines Thai farmers' competitiveness and breeds massive graft as claimed by the Democrats? These are the key questions that must be seriously addressed.

The opposition was armed with warnings from left and right, including well-known economists known to be sympathetic to the government. Shown were figures of a staggering financial burden born by the government, although the administration stated the Democrats were exaggerating. Cases of corruption were presented, to which the government virtually failed to respond. Disheartening facts were heard, including Thailand's loss of its long-held top spot as rice exporter.

The importance of being the world's biggest rice exporter might be debatable. The Yingluck government might argue that some factors over the past few years were beyond its control, and that the farmers' "immediate survival" was more crucial than sitting atop the export ranking. Yet the whole issue is not just about continuing to be the largest rice exporter.

Farmers constitute the largest sector of the Thai population, so the key question must be what the rice-pledging programme is doing to them.

The government wants to continue the rice policy, despite the opposition's claims that the "populist" scheme has been sucking the state coffers dry. Whatever the real reason, the determination to continue is worrisome. If the government fears losing face or popularity among farmers dependent on the rice programme, it's tantamount to tying the long-term future of the state finances to a highly dubious political agenda. If the government honestly believes that rice price pledging is good, an immediate rethink looks unlikely.

There were signs the government wanted to back away from the policy, or at least scale it down. But politics came into play and the most ambitious pledges to the farmers were maintained. Payment has not been smooth lately, though, with the opposition alleging that only a few of the farmers who "sold" their rice to the government lately have been fully paid.

The Pheu Thai Party must depoliticise the rice scheme. Cancelling it, of course, will subject the ruling camp to boos and jeers, but such political contempt must not factor in the decision-making process which involves the future of Thailand's millions of farmers.

A thorough, independent and neutral study must be conducted on how the scheme affects innovation and competitiveness of Thai farmers. After all, their plight or well-being is something much more real than the "survival" of those politicians who initiated and are implementing the rice scheme.


-- The Nation 2013-12-02

[chainarong]

If Thailand is relying on this as it's major income , an independent commission into the scheme is required, the PTP will not adopt this type of inquiry as egg on the face or a back down, they couldn't handle, to cut the chase and stop the scheme is the proper thing to do , no votes in this , so its business as usual more bull!!it talk.

[tim armstrong]

Finally, a clear statement about the biggest financial problem. The only way the government can get out of this one is to borrow more money,to pay farmers, and isn't it just too coincidental that they are actually doing that. Obviously this scheme is unsustainable and however they try to cover up the debt, inevitably the truth will out. They are probably paying the larger farmers who support them, but as the article says, farmers are the largest section of the population, and many have no other income other than rice, and are now increasingly in debt, due to chemical and machinery costs. Unfortunately, like farmers the world over, they are far more interested in their production ability, rather than the marketing of the product. I wonder what's the real price of rice currently being sold to China from the stockpile at present ?

[JRSoul]

How do you depoliticise Thaksin's pet policy?

Just another bad policy that replaced better because the better policy was enacted by the previous government. Rice scam, B30 medical treatment, shoddy over-priced tablets instead of text and uniform subsidies. The last is the biggest vote-loser as it hit the pocket-book of so many families while having little perceivable benefit to them.

[tomacht8]

This is the core problem.

In the past, every group in power has had plundered the country and the household budget.

Independent control systems do not exist, have failed or been corrupted.

It is incredible that so-called "elected" representatives of the people here are allowed to operate without limits, and can carry cash in suitcases out of the country.

Accountability Reports does not exist, or are simply not created.

It must be made impossible that the leaders get state money directly into there fingers.

The country has to create instruments to control cash flows by fully documentation, to stop this self service mentality.

It does not help to combat corruption in the small officials. It is better here to be set at the top and control the funds meticulously.
Would be good if everyone can see, without delays, where the money goes!

That is what the people really want.

If they can stop, that leaders can enrich themselves personally from the state assets, then it will gets unattractive for those selfish greedy grabby people.

And then hopefully Thailand will get what this beautiful country really needs:

New honest leaders.

[Thai at Heart]

Well to solve the rice Problem you have to reform land law.

Now there is a delicate subject. Any takers?

[belg]

subsidize an money losing industry

for people who never pay taxes

with tax payers money, mostly from bangkok ...

change the Vote laws and only people who pay taxes should be allowed to vote

and all this red shit would disappear

as mostly get overpaid for watching rice grow

[Ulic]

Very hard to depoliticize the policy that got one side elected.

[JRSoul]

Well to solve the rice Problem you have to reform land law.

Now there is a delicate subject. Any takers?

What land law? What is the benefit of giving people tiny plots of land that will never return a decent income no matter how hard they work?

If the governments stopped subsidising inefficient subsistence and near-subsistence farming, they might have enough money to educate people to a level where they can earn western level incomes. There is plenty of work available currently being done by immigrant workers, while Thai workers drain the public purse through subsidies handed out by the politicians that pander to them. So called land reform laws only make the situation worse.

[hellodolly]

To me it is all talk. No one has come out with facts. Yes it is a money loosing scheme.

But I would like to see the break down of where the money goes. It seems to me the middle men must be getting a lot of it to store that much rice until it goes bad.

Break it down how much is the small farmer making. What were his costs before the scheme and what are they now.

As I understand it Thailand does not need more rice they have more than enough. They need more workers.

If they can not make a living at farming let the land sit while they work in a factory and make money and don't take money out of the pockets of the tax payers. There is no tax on the land. If they are leasing it let it go and let the owner deal with it.

[billd766]

Well to solve the rice Problem you have to reform land law.

Now there is a delicate subject. Any takers?

But but but the Democrats under Abhisit were starting to do that.

However when the PTP got power and control it was dropped like s hot stone.

[Barney R]

Just a quick question on this scheme what would happen if the Thai baht was to depreciate by let's say 15% or more to the USD ?.Just doing some simple maths and rounding things off . 1 tonne of rice is about $300 Usd approx 9000 baht if prices stayed the same and the baht dropped 15% that would make 1 tonne of rice around 10,350 baht . Makes you wonder if the government really wants to stop the rallies ect .

[Thai at Heart]

Well to solve the rice Problem you have to reform land law.

Now there is a delicate subject. Any takers?

What land law? What is the benefit of giving people tiny plots of land that will never return a decent income no matter how hard they work?

If the governments stopped subsidising inefficient subsistence and near-subsistence farming, they might have enough money to educate people to a level where they can earn western level incomes. There is plenty of work available currently being done by immigrant workers, while Thai workers drain the public purse through subsidies handed out by the politicians that pander to them. So called land reform laws only make the situation worse.

Taxation, distribution, ownership, zoning and a free other small issues. The moment that there is even a moderate taxation on land possession the usage will change instantly.

Then throw in pricing for water consumption and maybe no one chooses to grow rice anyway.

[Thai at Heart]

Well to solve the rice Problem you have to reform land law.

Now there is a delicate subject. Any takers?

But but but the Democrats under Abhisit were starting to do that.

However when the PTP got power and control it was dropped like s hot stone.

The idea came up and promptly got squashed.

[tomacht8]

Just a quick question on this scheme what would happen if the Thai baht was to depreciate by let's say 15% or more to the USD ?.Just doing some simple maths and rounding things off . 1 tonne of rice is about $300 Usd approx 9000 baht if prices stayed the same and the baht dropped 15% that would make 1 tonne of rice around 10,350 baht . Makes you wonder if the government really wants to stop the rallies ect .

9.000 or 10.000 Baht doesn´t matter.

Supunnabul Suwannakij reported in Bloomberg, that the stockpile are now around

16 Million metric tons.

To get 16 Million ton milled rice you need 27 Mio ton paddy.

20% husk, 8-12% bran depending on the milling degree and 68-72% milled rice

Farmers get for Paddy 27.000.000 * 14000 = 378.000.000.000

Stockpile value milled rice 16.000.000 * 14277 = 228.432.000.000

Market price now 453,26 dollar/ton

Thailand has spent 678 billion baht since October 2011 buying about 29 million tons of milled rice from farmers.

That is 678.000.000.000 / 29.000.000 = 23.379 Baht per Ton for milled rice

Deputy Finance Minister Tanusak Lek sayed:

“He said the government has spent Bt680 billion to purchase rice and returned Bt180 billion to the BAAC, adding that the BAAC has Bt500 billion revolving fund for rice purchases until the end of this year.”

I fear that they burned Bt680 billion + Bt180 billion already.

All questions in Parliament to have not been answered, or the deputies could not give any information about exact numbers,

Where is all this money?

Who did get what?

Where are the receipts for it?

Who has made ​​his bag full here?

With this money they could modernize all schools and hospitals in Thailand.

All Thais would have had a fair share!!!

Again where is this money now?

The dimension is gigantic.

680.000.000.000 Baht? + 180.000.000.000 Baht?

ti nai?

Edited December 2, 2013 by tomacht8

[tomacht8]

RT@Saksith: TR @wichudaphimphan: [Fmr PM] Somchai Wongsawat’s family leaving the country for London [on] Thai Airways International Flight 910

I hope the Thai and English customs will check there suitcases.