EC left with Thai rice woes

[webfact]

RICE SCHEME
EC left with rice woes
Nakharin Srilert,
Sayan Chucham
The Nation

Protesters from the anti-government People

Govt needs EC-approved loan to pay for latest crop; farmers rallying over delay in payments

BANGKOK: -- Problems related to the government's huge rice stockpile are now being left at the Election Commission (EC)'s doorstep.

The Commerce Minister wants the EC to advise him whether it is legal to sell rice from the stockpile, while the Finance Minister also wants to know if he can borrow more funds to pay for the latest crops, bought under the 2013/14 pledging scheme.

Caretaker Finance Minister Kittiratt Na-Ranong said after the Cabinet meeting yesterday a report on funding for the rice-pledging scheme showed Bt463.8 billion was spent out of a budget of Bt500 billion set for last year. That meant only Bt36.2 billion remained.

Kittiratt expected there would be no more than 11 million tonnes of paddy rice for the 2013/2014 crop, ending next month. "We expect to spend not more than Bt130 billion on the pledge, lower than the expected budget of Bt270 billion, which was given initial Cabinet approval on September 3, 2013."

He said the caretaker government would not spend all of the Bt270 billion it will seek, as spending would only be used for main crops, which account for not more than Bt130 bn.

"We have sought approval for the amount of this loan from the EC," Kittiratt said, adding that the size also depends on how much of the rice stockpile is released.

Caretaker Deputy Prime Minister and Commerce Minister Niwatthumrong Boonsongpaisan said yesterday the government was waiting to hear from the EC on whether the caretaker administration had the legal right to enter into new rice sale deals.

"In fact, about one million tonnes of rice is waiting to be sold to China," he said, adding that there were also other prospective buyers.

"If the EC says 'No', everything will have to wait," Niwatthumrong said. He expected an answer from the EC by the end of the week.

The rice-pledging scheme is highly controversial. Critics point out that it has caused massive financial losses, as the government buys rice from farmers at a high price, which makes it tough to sell stock without incurring a loss.

Yesterday, farmers from five provinces blocked a highway in Phichit causing a serious traffic jam, while they demanded that the government quickly address their woes.

"We want the payments by January 15," Kittisak Rattanawaraha said, in his capacity as the chair of the Northern Farmers Network.

He said the government should also pay for interest on loans that the farmers needed to get from the Bank for Agriculture and Agricultural Cooperatives (BAAC) because of the delay in payment.

"Farmers have to use the scheme's certificates of rice as collateral to get those loans, despite the fact the certificates should warrant immediate payment. So, the government should pay for the interest from such loans."

Kittisak said the government should also offer a one-year and interest-free moratorium to affected farmers related to other BAAC loans. "If the government doesn't answer our demands, we will combine our protest with the rally against the government," he said.

Senior officials stepped in to negotiate with the protesting farmers, who agreed to only partly block the highway.

Phichit Governor Surachai Khan-asa assured the farmers that Deputy Finance Minister Tanusak Lekuthai had confirmed that the government had already approved Bt70 billion for payments to them.

That news satisfied the protesters, who ended their partial blockade of the highway in the evening. But they warned they would come out again if they were not paid by January 15.

Another rally was also held in Phitsanulok, where about 500 farmers gathered in front of the provincial city hall yesterday to demand that the government provide quick help. They said they have waited for payment for months already. These farmers said the payment should be made by January 31.

Phitsanulok Governor Rapee Phong-buppakit met with farmers and promised to relay their demands to the caretaker government.

According to Niwatthumrong, all payments pending for the 2013/14 crop season will be paid to the rice farmers before the end of this month. This crop season runs from last October to next month.

BAAC labour-union chief Prasit Pahome expressed concerns about the government's plan to use the BAAC's available cash to pay farmers participating in the rice-pledging scheme. "It affects our liquidity," he said.

The BAAC had about Bt100 billion in liquidity and payments for the rice scheme would require about Bt50 billion, he thought.

Supannee Phutpisut of the BAAC labour union said if BAAC used Bt50 billion for the rice scheme, depositors' confidence in the BAAC would falter.

Meanwhile, the Election Commission has not had any notice from Cabinet about a Bt55-billion loan to fund the rice-pledging scheme, secretary-general Puchong Nutrawong said yesterday. He advised the Cabinet it would need to get prior approval from them to get such a loan, or to carry out any projects or policies before it tries to implement them.


-- The Nation 2014-01-08

[Robby nz]

The minister of white lies seems to be able to come up with different numbers every time he opens his mouth.

Looks like the bank is getting about as worried as the farmers.

But not to worry we have the EC to blame if we cant pay the farmers and if that doesn't work we can blame the protesters.

Oh but hang on a bit the farmers are the protesters now, so it must all be the EC's fault.

[Tatsujin]

Borrow more money? You mean the Rice Scam is actually running at a loss?

[EricBerg]

Now they want to move responsibility to the EC? Spread the risk of having to answer questions after the cabinet is gone.

Millions and millions of public money thrown away to buy votes. An outrage. Now see if anyone ever gets locked up for this rice scheme.

[Thai at Heart]

And slowly but it inexorably it unravels

[pedro01]

You have to admit - this is a fairly smart play by PTP - shifting responsibility to the EC.

Now - if the EC is smart - they will ask the government to publish all numbers related to the rice scheme so that they can make up their minds.

[JRSoul]

"We expect to spend not more than Bt130 billion on the pledge,......" but they don't have B130 billion, in fact they can only borrow B36.2 billion (ONLY??) more by their cabinet ruling.

Can they sell more rice? Why not; it's business as usual.

But they'll sell at a loss? How were they ever going to sell at a profit under this idiotic scheme. At least they'll get something back, and reduce storage costs.

Can they borrow more money? And put the country further in debt to prolong a scheme doomed to failure is pure idiocy, and only delays the inevitable.

Should they be allowed to buy more rice? They don't have the funds, or means to raise them, to pay for it. Buying more rice for inflated prices without the means to pay is fraud.

Edited January 8, 2014 by JRSoul

[edwinchester]

Anyone else intrigued by this supposed mega deal with China? One million tonnes still 'waiting to be sold'. Thought they had it all signed months ago.

[waza]

The PTP ministers say the EC is holding up rice payments....

"The Commerce Minister wants the EC to advise him whether it is legal to sell rice from the stockpile, while the Finance Minister also wants to know if he can borrow more funds to pay for the latest crops, bought under the 2013/14 pledging scheme."

But the EC say What payments?....

"Meanwhile, the Election Commission has not had any notice from Cabinet about a Bt55-billion loan to fund the rice-pledging scheme, secretary-general Puchong Nutrawong said yesterday. He advised the Cabinet it would need to get prior approval from them to get such a loan, or to carry out any projects or policies before it tries to implement them."

[CraigSchuler]

How much is rotten rice worth?

[waza]

Anyone else intrigued by this supposed mega deal with China? One million tonnes still 'waiting to be sold'. Thought they had it all signed months ago.

"According to Commerce Minister Niwatthamrong Bunsongphaisan, the two countries have signed agreements to collaboratively undertake studies on the development of the Bangkok-Nakhon Ratchasima-Nong Khai rail line in exchange for Thai agricultural produce. Under the deal, 50% of the costs of the high-speed rail line will be paid to China in the form of farm produce, and the remaining 50% will be in cash. The agricultural produce will be based on the global reference prices. However, he said this agreement was by no means a construction contract." http://thainews.prd.go.th/centerweb/newsen/NewsDetail?NT01_NewsID=WNFOR5611060010001

Looks like the deal is reliant on the 2.2 trillion infrastructure bill being passed to fund the 50% in cash clause.

[Chupup]

Talk about the RIGHT HAND not knowing what the LEFT HAND is doing .and that very THAI game pass the buck...............

[khwaibah]

The 15 th my arse...

[Valentine]

If they are not allowed to enter into any deals with foreign governments whilst in caretaker mode, surely they can sell it to private Thai companies who can then sell on the open market. Having to incur losses on stocks already held has to be better than the current spiralling out of control continuing by borrowing more money. At least they will get cash in hand to pay the farmers who they profess to adore.

[Thait Spot]

I'm sure the EC will say that selling rice can continue

And that further loans are not permitted at this stage.

[Katipo]

Nice attempt at shifting the blame/responsibility for this grade A mess from the PTP who implemented it. I doubt the EC will stand for these tactics, and it could very well backfire (in fact I hope it does),

[tim armstrong]

Anyone else intrigued by this supposed mega deal with China? One million tonnes still 'waiting to be sold'. Thought they had it all signed months ago.

It was always going to be China to the rescue in the end, but I wonder how much per tonne they are paying now? and will it even be enough to cover what they are paying out ? But as others observe it doesn't matter as the EC will now pay

[tominbkk]

I'm waiting for our red apologists to come out in support of the rice scheme....and still waiting.

[scorecard]

Nice attempt at shifting the blame/responsibility for this grade A mess from the PTP who implemented it. I doubt the EC will stand for these tactics, and it could very well backfire (in fact I hope it does),

Agree, and further, trying to shift blame to the EC is a total insult to the intelligence of all Thai people.

This gang think the Thai populace is totally stupid.

Despecable behavior by a mob who are not much more than a gang of immoral thieves.

[maidee]

10 kg of rotten rice free per protestor and the rest to thai prisoners

riceberg should be gone

[ginjag]

I'm waiting for our red apologists to come out in support of the rice scheme....and still waiting.

You will be waiting for ever, same as the PM is waiting for everyone to go home and be peaceful people.

[GAZZPA]

I'm sure the EC will say that selling rice can continue

And that further loans are not permitted at this stage.

Agree, and then the "caretaker" governement will say to the farmers,, "oh well, sorry everyone but parliament was dissolved so we are not permitted to look after you again,, it a different party gets in not sure they will continue with this,,, but if we get in again we will continue support, etc, etc,,"

Just really bad politics, Disgusting. As always the people in charge make money, the ones who will always lose when the poiticians play these games are the little guys, the farmers. The crash is coming and the poor farmers will be the ones who suffer.

[aimbc]

If they want anyone's help, they need to first disclose all transactions. They need to disclose the entire stock of rice as well. They had more than enough time to do this. How all of a sudden, after 4 months, they are able to find money to pay the farmers, within a couple of days? I don't see transparency anywhere. EC would be irresponsible if they allow the money to be spent without seeing the figure. They can not just rely on the word of the govt. They must also look at the overall scope of the project and make sure that there will be enough to pay everyone and not just this group of farmers. This would also include warehouse cost, labor cost and any other cost that needs to be met. Because it would not be fair to have others wait. This is only the principle of the matter. Can't act irresponsible like this government has done. But I would say go as far as wait for NACC to present their findings.

[slapout]

Since the desolution, the 'caretaker goverment' has shown a real intrest in the legal status of any proposed decisions/action in explaining delays, non payment, etc. They point the fickle finger of fate at th EC while at the same time their party members are threatening, appealing EC decisions that they are tasked to make.

It would appear they are attempting to string this 'caretaker' government stenure out, in the hopes of winning back some of the disgruntled voters, hide the evidence against them, hide the paper trails of laundered monies, until a new plan can be put in place.

Someone is going to have to make a real committment as to what needs to be done, what will be done and convience those in opposition to allow his/her plan to proceed. Thai Politicians are like a conspitated baby, first they need a good rogering with a water hose, then a diet which is made up of healthy ingredients (graft maney not included) and finally a good exercise in good governance to substain their physical wellbeing. There are ample examples of those who should be banned, jailed, or even left to flee, if any group really wants to make the country a better place to live for the majority. of people.

[darren84310]

Borrow more money? You mean the Rice Scam is actually running at a loss?

I've said many times... They need to win election to then approve infrastructure budget and use that for farmers.... Ponzie scheme... Phue Thai style.

[allan michaud]

Anyone else intrigued by this supposed mega deal with China? One million tonnes still 'waiting to be sold'. Thought they had it all signed months ago.

Wasn't it 1million tonnes over 4 years?

[h90]

Borrow more money? You mean the Rice Scam is actually running at a loss?

That can't be...PTP promised that it will be big profit.

[bigbamboo]

Anyone else intrigued by this supposed mega deal with China? One million tonnes still 'waiting to be sold'. Thought they had it all signed months ago.

Wasn't it 1million tonnes over 4 years?

Or four tonnes over one million years?

[Ulic]

Old mother Hubbard went to the cuppbord........... The bank account was bare.

[tomacht8]

10 kg of rotten rice free per protestor and the rest to thai prisoners

riceberg should be gone

Nope, so much they can not eat, the dimension is gigantic.

Unfortunately, there are no concrete / verified figures on the size of the rice mountain published and also

the dimension of loss from this $%& idiotic rice scheme at all.

I guess it is until today 800 Billion Baht.

Loss = 800.000.000.000 Baht = 800.000 x 1.000.000 Baht

Lets say they have now around 15 Million Ton milled rice in stock.

How many are rotten or/and how much of it really exists (double and triple bookings, nepotism, scams, etc.)

nobody know. They just do not come out with clear numbers.

15.000.000 Mio tons x 1.000 = 15.000.000.000 kilo

Lets say we have 5 Million protesters and 0,5 Million prisoners

so everybody can eat 2727 Kilo rice; 2,7 tons per person!

So your solution would bring little.

Anyway.

They must solve this problem, this madness, as soon as possible.

The consequential damage will be tremendous.

Now the polluters try evade responsibility.

No way

They belongs into jail for crimes against society.

Irresponsible behavior towards society.

Typically representatives of the people are obliged to keep away harm from society.

However, the do the exact opposite, just only to enrich there group of family and friends.

They give a shit on society and starving fellow citizens.

Edited January 8, 2014 by tomacht8