Northern rice farmers threaten to block Asian Highway

[mudscrubber]

This is what happens when you offer free money. People get used to it, and you create huge dependencies on it. But that's not all. It also bankrupts the government, cripples the GDP, allows huge stores of rice to spoil, and has taken Thailand off its previously proud position as the world's largest exporter of rice. But then again, perhaps it's better to pay them off, and lock up their vote.

As any first year economics student can tell you , there is a huge difference between free money - money for nothing - and subsidies. It takes a considerable investment and a considerable amount of labor to grow rice. Hardly money for nothing. Definitely not "free money."

[tim armstrong]

Skorchio - dead right. This is THE big issue facing Thailand and it won't go away. Neither side of politics will escape this one. My guess is that China is going to do well out of it and get a lot of cheap rice. For many farmers there is NOW no money to plant rice and it's too late to switch crops as the colder dry season kicks in.

[ratcatcher]

It might be of interest to some, that three of the "northern" provinces, namely Sukothai, Phitsanulok and Phichit are not Puea Thai strongholds.

http://en.wikipedia.org/wiki/File:2011_Thai_general_election_results_per_region.png

http://en.wikipedia.org/wiki/Provinces_of_Thailand

Phitsanulok shows blue-Democrat, Phichit shows purple- Chartthai and Sukothai shows no majority in the 2011 elections..

These may be the provinces presently reported with protesting rice farmers.

[Nickymaster]

Every Thai company has to submit its financial statements once a year. Every major company is audited by an independent party. The Thai government does not submit/reveal any figures and doesn't allow an independent party to audit the scheme. This has been going on for almost 3 years now. I really understand why taxpayers are getting angry at this PT bunch.

[thenewgoo]

Didn't get the money promised from the gov, now no money for school fees and banks can't help because they don't have the money. Sign of the times I'm afraid - I just hear that electricity is going up again next month - wow

[Nickymaster]

This is what happens when you offer free money. People get used to it, and you create huge dependencies on it. But that's not all. It also bankrupts the government, cripples the GDP, allows huge stores of rice to spoil, and has taken Thailand off its previously proud position as the world's largest exporter of rice. But then again, perhaps it's better to pay them off, and lock up their vote.

Creating dependencies is Thaksin's aim. More dependencies for his policies means the people can't life without it (him).

As you stated correctly, the drawbacks might be to large to handle but unfortunately it will never be admitted. They will keep pumping money in it. Anyhow it is not theirs. Who do you think own the foreign trading companies who buy the rice extremely cheap? Who do you think own those huge storing facilities that keep on charging storage charge?

What a mess!

Edited December 26, 2013 by Nickymaster

[fakename]

In the end, the government will just take money from other projects, and pay off the rice farmers, rather than lose the votes.

[thenewgoo]

In the end, the government will just take money from other projects, and pay off the rice farmers, rather than lose the votes.

Probably the education system first - at least I see on the news that school kids are finally getting their game tablets.

[Ulic]

I predict the farmers will be paid in the next 3 weeks, just in the nick of time.

[moe666]

It wouldn't be so bad but the government has destroyed the private rice traders and there is no place else they can sale their rice.

[Eddy B]

I expect to see the tourists and ex-pats being stung with increases for visa's, re-entry permits and the healthcare scam....oops sorry I meant scheme. The thai's and us ex-pats living here being hit again with an increase in petrol/gas/alcohol/cigs/general food and electric just to cover the PTP's F%^k-up over the rice scheme.

[laobali]

The Asian Highway? That's a rather grandiose name for 120km of road joing two towns in the middle of nowhere.

[passedout]

Where are the banks going to get 30% of all the money owed (It's "owed", NOT "promised".) to all of the northern farmers? If I were a farmer I would be afraid of a "30% of money owed" settlement, as a possible "final word" payment. The older I get (and I'm pretty old now) the more I think this is how the whole world economy works. Nobles and serfs. Ever hear of "Noctus Primus"? An old English right of Nobles over serfs. Maybe it still goes on..

Make it up with the computer...just like all the other banks do.

[PlastikbinLina]

Right on Eddy B. They should ask Suthep for the money. He'd give it to them and more, plus he'd get their votes too.

[mikemac]

Skorchio - dead right. This is THE big issue facing Thailand and it won't go away. Neither side of politics will escape this one. My guess is that China is going to do well out of it and get a lot of cheap rice. For many farmers there is NOW no money to plant rice and it's too late to switch crops as the colder dry season kicks in.

Correct. I f you listen real hard you can hear the Chinese rubbing their hands together and laughing, at Thailand's expense.

PTP is the best thing that ever happened to China, Malaysia, Cambodia, Vietnam etc.

Forget about Suthep and his "elite" comrades in Bangkok, this rice scam/sham/ blatant ripoff is the straw that will break the Shinawatra's back.

They have hit the rice farmer where it hurts, in the hip pocket, and they will respond. These isolated highway blockades are nothing, wait til they take their protests to Chiang Mai. (they won't go all the way to BKK, only the redshirts go that far because they are paid to do so)

[MJP]

Where are the banks going to get 30% of all the money owed (It's "owed", NOT "promised".) to all of the northern farmers? If I were a farmer I would be afraid of a "30% of money owed" settlement, as a possible "final word" payment. The older I get (and I'm pretty old now) the more I think this is how the whole world economy works. Nobles and serfs. Ever hear of "Noctus Primus"? An old English right of Nobles over serfs. Maybe it still goes on..

Make it up with the computer...just like all the other banks do.

This is what's going to happen I reckon.

Well, the 'West' has been at it since 2008 driving down the value of their currencies, so why not the 'East'?

Expect a big old round of Quantitative Easing here shortly and a corresponding plunge in the value of the Thai Baht, then the inflation.

[JRSoul]

This is what happens when you offer free money. People get used to it, and you create huge dependencies on it. But that's not all. It also bankrupts the government, cripples the GDP, allows huge stores of rice to spoil, and has taken Thailand off its previously proud position as the world's largest exporter of rice. But then again, perhaps it's better to pay them off, and lock up their vote.

As any first year economics student can tell you , there is a huge difference between free money - money for nothing - and subsidies. It takes a considerable investment and a considerable amount of labor to grow rice. Hardly money for nothing. Definitely not "free money."

No, just money wasted propping up a uneconomic industry, and stolen by the truckload. It doesn't matter how hard you work, it's the value of what you produce that determines your income, unless you can beg or steal somebody else's.

[Arkady]

Yingluck seems to have done a pretty good job of running government finances so that even the people who supposed to be the beneficiaries of her popularist schemes are p*ssed off with her.

[SICHONSTEVE]

Yingluck seems to have done a pretty good job of running government finances so that even the people who supposed to be the beneficiaries of her popularist schemes are p*ssed off with her.

Really!!!

The finances are terrible and Yingluck doesn't have anything to do with anything so your take on the situation is rather strange to say the least.

For a start, why do you think that this topic has come about? - because they have run out of money to finance this pathetic scheme maybe!!

She (Thaksin) is driving this country into the ground and the idiots up North are the cause in have supported their perpetrating of it.

[hughben]

But what was their alternative in the last elections?

Vote for a party that doesn't take you seriously and if given the choice would prefer you never had an option to vote or vote for a party that will give you some 'income'.

[SICHONSTEVE]

But what was their alternative in the last elections?

Vote for a party that doesn't take you seriously and if given the choice would prefer you never had an option to vote or vote for a party that will give you some 'income'.

What they don't realise is that they benefitted more from the Democrats rice mortgage scheme which cost a fraction of this stupid pledging scheme.

They need to get over the fact that they have been duped by Thaksin and he is not their friend, but simply a parasite that is using them!! If they must learn the hard way then so be it. I'm not worried!!

[Bkkbound]

Well Taksins plans are completely off the rails in Issarn, farmers being told different things daily by Gov officials, farmers who sold their rice in Nov still not paid and not being given a definate date other than .'next week sometime'; and that farmers will be paid in the order they submitted their rice, so if someone submitted rice in Mid Dec they will get paid a month later than the first lot... its not the yellow shirts that taksin needs to worry about , its the very angry farmers, with debts, bills, kids to fund.

Is this some sort of perverted retribution by Taksin for the failure of 'his people' to support him? It is noticable how commonly he is referred to in negative terms as being chinese and his Ao Bai song back in favour amongst the villagers.

Edited December 27, 2013 by Bkkbound

[Maha Sarakham Marty]

He said farmers have been promised several times by the commerce deputy minister but nothing have been met.

Commerce deputy minister (and multiple-indicted red shirt leader) Natthawut has a penchant for lying.

[JRSoul]

But what was their alternative in the last elections?

Vote for a party that doesn't take you seriously and if given the choice would prefer you never had an option to vote or vote for a party that will give you some 'income'.

"income" = other people's money, now not spent on government services and infrastructure, instead used to buy your vote.

[slapout]

Wonder if this will be in conjuction with the advertised protests in Bangkok?

If someone could/would get the info to the general population and the farmers that the cost of this program to every man, woman and child in this country of 70 million, has already cost over 700 billion baht. Thats a fair amount of change that many may have been able to use for their own benfit.