Thai Finance Ministry seeking new funding source for rice pledging scheme

[Ulic]

When is the Yingluck government going to admit the true cost or this unsustainable scheme.

The money will only get harder and harder and thus more expensive to come by. Time to come

clean scale back this program with a goal to ending it. Help the farmers by coming up with a

program that increases productivity and quality.

[pedro01]

I see everyone complaining about the rice pledging scheme. But how otherwise will farmers sell their rice? If the government can't sell it, I doubt the farmers will have any chance to sell it themselves.

Maybe they should start thinking about using the rice as bio fuel.

There was a rice industry in thailand before this rice scheme. That was how farmers sold their rice before

Sent from my iPhone using Thaivisa Connect Thailand

[Moruya]

I see everyone complaining about the rice pledging scheme. But how otherwise will farmers sell their rice? If the government can't sell it, I doubt the farmers will have any chance to sell it themselves.

Maybe they should start thinking about using the rice as bio fuel.

That's because the government screwed up the processes that had evolved over many years for selling rice

[renaissanc]

Please, no more buying rice by the governemt! I love Thailand, don't ruin this country. Run it as business, policies must make ecomonical sense.

But the country is run as a business already - the personal business of a man who loves to use Skype.

[tim armstrong]

Well it was a reasonable certainty that there was not enough money for this round of payments, but I would of thought that they had at least some money ? I wonder where the money from the last rice sale went? If there is no money this time the farmers will revolt, and food production will quickly slowdown. Its looking worse by the day. Still there is still lots of rice to eat. The question is at what price will China make a loan ?

[a99az]

Why not sell some of your rice mountain first!!

[khunken]

Why not sell some of your rice mountain first!!

How?

[SOTIRIOS]

..all the money is gone.....none of the farmers have been paid......and they want more money.....???

[tomacht8]

I said this before when they came up with the 500bt tourist tax. The top wigs told the ministers to come up with a money earner to pay for this stupid rice levy. I told you so.

Yes they need money, but the dimension is massiv.

If the get from 20 Mio Tourist 500 Baht each, this is then around 10 Billion Baht a year.

They burned on this $%& Rice Scheme allready 800 Billion Baht in 24 month; that is around 33 Billion Baht in a month!!!

So all Tourist Taxes from on year would extend the scheme to fund for 10 days!!!!

800.000.000.000 Baht loss

That is 800.000 Houses for 1 Million Baht each. (They could build with this Money Chiang Mai 2)

I think many people in this country do not understand the dimension of loss.

They could modernize all schools and state hospitals across the country decisively. Even for road safety and drinking water supply would be some money left.

Those responsible should be imprisoned longtime for crimes against the society.

These criminals have stolen all children in the country a better future.

[Mosha]

I see everyone complaining about the rice pledging scheme. But how otherwise will farmers sell their rice? If the government can't sell it, I doubt the farmers will have any chance to sell it themselves.

Maybe they should start thinking about using the rice as bio fuel.

The previous administration proposed paying the farmers direct.

[Mosha]

Perhaps Kwanchai can organise a whip round.

[oldthaihand99]

Print monolopy money like the USA.

[JRSoul]

Print monolopy money like the USA.

Only dyslexics are allowed to play monolopy.

[waza]

The reality is that selling the entire stockpile of this degraded rice at market price, would only cover the cost of its storage and interest on the loans. That's why there are no funds to pay farmers for the latest and future crops and no chance of recovering any of the losses. The legacy of another Thaksin government is another off the books massive debt.

Edited January 4, 2014 by waza

[Soi Sauce]

I see everyone complaining about the rice pledging scheme. But how otherwise will farmers sell their rice? If the government can't sell it, I doubt the farmers will have any chance to sell it themselves.

Maybe they should start thinking about using the rice as bio fuel.

There was a rice industry in thailand before this rice scheme. That was how farmers sold their rice before

Sent from my iPhone using Thaivisa Connect Thailand

Thailand sold more rice than any other country before this scheme. The farmers must have sold it, somehow.

Unfortunately for them, the gov wanted to artificially inflate the price,. A 101 economics student knows you cannot do this with a non-scarce, easily produced, easily replaced product.

Pity no-one told the inventor of thaksinomics that, but you only have to look at what happened to coffee growers before when they tried the same dumb trick.

The new book will be called, "I Ruined It My Way", but no-one willl be told how much the royalties were.

[aimbc]

I see everyone complaining about the rice pledging scheme. But how otherwise will farmers sell their rice? If the government can't sell it, I doubt the farmers will have any chance to sell it themselves.

Maybe they should start thinking about using the rice as bio fuel.

There was a rice industry in thailand before this rice scheme. That was how farmers sold their rice before

Sent from my iPhone using Thaivisa Connect Thailand

Please. Look uo the rice scheme in more detail. About 2 million of 4 millions rice famers did not sell their rice to the goverenment. This is confirmed by one of my worker. The reason the can't sell is because they grow barely enough to feed themselves. The basic rule for any successful project is sustainability. Can anyone tell me it is sustainable?

[aimbc]

Most people believe that the government is honest about the program. I will bet you anything that rice have already been sold out the back door by corrupt politicians. They will later declare the missing rice as spoiled rice. Look up the detail of the first yesr rice scheme. A lot of the rice was found to be missing, but the government ignored it and claimed that it helped 3% of the population at a cost of 800,000 million baht. How is that helping? As a matter of fact it will hurt them more in the long run.

[Robby nz]

The previous administration proposed paying the farmers direct.

They not only proposed it Mosha they did it.

To the tune of 60 billion in their term in office.

If that had been continued to this day it would have been a saving of around 400 billion to the country, there would have been no rice mountain, Thailand would still be the worlds top rice exporter and would still have a reputation for quality.

[davehowden]

And to think that Thaksin Shinawatra was (and maybe still is) a member of Carlyle Group's Asian advisory board.

I wonder if he ever discussed his "rice market cornering" plan with any of his cronies there, or how many of them have got their fingers burnt in this fiasco.

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

[smedly]

again PTP twisting the rules, it might be an existing project but the funding has run dry and requires "new funding" all would have been fine if they had got the 2 trillion they wanted off budget for infrastructure projects - worth noting they never mentioned any of the money would have been used for the rice pledging which it obviously was and why it was applied for illegally or off budget - exactly why this pathetic excuse for a government needs to go now

[PaullyW]

I would say that no borrowing can happen until the government release the figures. The entire program should halt until they get their house in order. This is why government keep abusing their powers. Even check and balance can not be implemented.

Agree.

It's not that hard to publish the exact figures.

I'm sure that those in charge know the exact numbers.

Even an economics student from the first semester can do that

I guess the loss on 680 Billion + 180 Billion

minus rotten Stockpile – 12 Billion Cash in BAAC – outstanding 80 Billion loans

= around 800 Billion Baht loss. + X

What worries me is, that there are more "Skeletons in the basement".

Unpaid farmers,

Unpaid millers,

Unpaid Warehouse owners,

The BAAC without liquidity,

Farmers with debts to the seed companies

Farmers with debts to the fertilizer suppliers

Farmers with debt to the harvest workers

Farmers with debts to loan sharks

Small Farmers with debts to the landowners

This is only the prelude for a financial disaster.

Maybe it's the smartest theft of government funds ever,

or the stupidest thing what a government can do with government funds.

In both cases, the money is completely gone, if it was not immediately be verified.

Those responsible should get the harshest penalties, for this irresponsibility towards the society.

Thailand need a honest Tax Police!

In China, convicted would likely be executed.

Sent from my GT-N7100 using Tapatalk

[smedly]

I would say that no borrowing can happen until the government release the figures. The entire program should halt until they get their house in order. This is why government keep abusing their powers. Even check and balance can not be implemented.

Agree.

It's not that hard to publish the exact figures.

I'm sure that those in charge know the exact numbers.

Even an economics student from the first semester can do that

I guess the loss on 680 Billion + 180 Billion

minus rotten Stockpile – 12 Billion Cash in BAAC – outstanding 80 Billion loans

= around 800 Billion Baht loss. + X

What worries me is, that there are more "Skeletons in the basement".

Unpaid farmers,

Unpaid millers,

Unpaid Warehouse owners,

The BAAC without liquidity,

Farmers with debts to the seed companies

Farmers with debts to the fertilizer suppliers

Farmers with debt to the harvest workers

Farmers with debts to loan sharks

Small Farmers with debts to the landowners

This is only the prelude for a financial disaster.

Maybe it's the smartest theft of government funds ever,

or the stupidest thing what a government can do with government funds.

In both cases, the money is completely gone, if it was not immediately be verified.

Those responsible should get the harshest penalties, for this irresponsibility towards the society.

Thailand need a honest Tax Police!

great post and my thoughts exactly which is why this government cannot and will not step down, they have two choices - cling on to power at all costs - or run for the airports

If they step down then all will be revealed and they could face very long spells in prison

[animatic]

I would say that no borrowing can happen until the government release the figures. The entire program should halt until they get their house in order. This is why government keep abusing their powers. Even check and balance can not be implemented.

Agree.

It's not that hard to publish the exact figures.

I'm sure that those in charge know the exact numbers.

Even an economics student from the first semester can do that

I guess the loss on 680 Billion + 180 Billion

minus rotten Stockpile – 12 Billion Cash in BAAC – outstanding 80 Billion loans

= around 800 Billion Baht loss. + X

What worries me is, that there are more "Skeletons in the basement".

Unpaid farmers,

Unpaid millers,

Unpaid Warehouse owners,

The BAAC without liquidity,

Farmers with debts to the seed companies

Farmers with debts to the fertilizer suppliers

Farmers with debt to the harvest workers

Farmers with debts to loan sharks

Small Farmers with debts to the landowners

This is only the prelude for a financial disaster.

Maybe it's the smartest theft of government funds ever,

or the stupidest thing what a government can do with government funds.

In both cases, the money is completely gone, if it was not immediately be verified.

Those responsible should get the harshest penalties, for this irresponsibility towards the society.

Thailand need a honest Tax Police!

great post and my thoughts exactly which is why this government cannot and will not step down, they have two choices - cling on to power at all costs - or run for the airports

If they step down then all will be revealed and they could face very long spells in prison

Of course they liege lords involved would ALSO be taking a cut from the' Debt Holders' working their pawns areas

so putting the populace back into a debt-cycle is profitable and a means of control for the Shin political Machine.

[oldthaihand99]

Print monolopy money like the USA.

Only dyslexics are allowed to play monolopy.

Cute. But i still prefer YL over you.

[SteveB2]

Ah popularist politics... Its all so predictable.

Its always not that long before the policies democratically voted in by the electoral majority succeeds in bankrupting the state.

“This may not be the end of the beginning, but it is definitely the beginning of the end”

This could be an interesting year!

[rametindallas]

The PTP is only in a caretaker position......they shouldn't be able to go ahead and initiate new loans that the taxpayer has to repay...but I guess being PTP and Thailand...it will go ahead and nothing said

The Election Commission gave the government permission to make the loans. Where the EC gets its authority to do that, I haven't a clue.

[Robby nz]

ChrisY1, on 03 Jan 2014 - 16:53, said:

The PTP is only in a caretaker position......they shouldn't be able to go ahead and initiate new loans that the taxpayer has to repay...but I guess being PTP and Thailand...it will go ahead and nothing said

The Election Commission gave the government permission to make the loans. Where the EC gets its authority to do that, I haven't a clue.

If I understand things correctly a caretaker government is allowed to continue with existing projects but is not allowed to start any new ones.

It is up to the EC to decide if a scheme (project) is an existing one or not so the present caretaker government have to ask the EC for a decision on whether whatever they want to do comes under the definition of existing or not.

[AleG]

I would say that no borrowing can happen until the government release the figures. The entire program should halt until they get their house in order. This is why government keep abusing their powers. Even check and balance can not be implemented.

Agree.

It's not that hard to publish the exact figures.

I'm sure that those in charge know the exact numbers.

Even an economics student from the first semester can do that

I guess the loss on 680 Billion + 180 Billion

minus rotten Stockpile – 12 Billion Cash in BAAC – outstanding 80 Billion loans

= around 800 Billion Baht loss. + X

What worries me is, that there are more "Skeletons in the basement".

Unpaid farmers,

Unpaid millers,

Unpaid Warehouse owners,

The BAAC without liquidity,

Farmers with debts to the seed companies

Farmers with debts to the fertilizer suppliers

Farmers with debt to the harvest workers

Farmers with debts to loan sharks

Small Farmers with debts to the landowners

This is only the prelude for a financial disaster.

Maybe it's the smartest theft of government funds ever,

or the stupidest thing what a government can do with government funds.

In both cases, the money is completely gone, if it was not immediately be verified.

Those responsible should get the harshest penalties, for this irresponsibility towards the society.

Thailand need a honest Tax Police!

Meanwhile, in the same period, Thaksin tripled his net worth. Coincidence? I don't think so.

[kingalfred]

Said it before and will say it again it would have been more effective to have just give all the rice farmers half a million baht or so to keep them happy.rather than all the middlemen who have screwed the tax payer by making a killing.What a disaster of monumental ineptitude and corruption.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

Edited January 6, 2014 by kingalfred

[tingtongteesood]

Mr Anusorn admitted that ongoing political problems have affected the Thai economy on various dimensions and could affect the Public Debt Management Office's projection on the country's economy in the next 4-5 years.

So if there is an election and if the Please Thaksin Party of criminals do win and take office again, they are making preemeptive statements now so they can blame everything bad that happens on the protestors afterwards.