Thai Commerce Minister says govt needs 180 billion baht to pay rice farmers

[webfact]

Niwatthamrong says government needs 180 billion baht to pay farmers



BANGKOK: -- Commerce Minister Niwatthamrong Boonsongpaisan said yesterday the caretaker government needs 180 billion baht to pay farmers who have sold rice to the government under the rice pledging scheme.

Niwatthamrong disclosed the figures of funds to be used to fund its rice pleding scheme for the 2013/2014 harvest crop year as the caretaker Finance Minister Kittirat na Ranong is to meet the Election Commission in Chonburi today to discuss its loan request.

The commerce minister begged the EC to understand the need of the government to pay farmers who are suffering from late payment.

He said if the EC is “cruel” and rejects its request, the government a contingency plan to cope with.

He assured that the 130 billion baht loan which the government is going to secure will not commit the new government as it was the original resolution of the cabinet which had endorsed the Finance Ministry to seek loans to support the rice scheme.

He explained that the rice-pledging scheme for 2013/2014 crop year, the government has already paid 54.95 billion baht to farmers, but still fall short of a huge sum of 180 billion baht to finance the while rice scheme.

If the EC endorses the government’s 130 billion baht loans, the money will be enough to pay 20 million farmers or 4-5 million households

He said if this request is rejected, the government has a plan to seek loans from other sources, both domestic and overseas, adding that it will not seek from banks.

Niwatthamrong said the government now has three scenarios in its consultation with the EC in case the loan is endorsed, rejected, or partly endorsed.

He also begged the state bank unions to understand the government’s need for loans reasoning banks will benefit from interest if they endorsed loans for the government.

EC is now blamed by several caretaker cabinet ministers of being a cause for the government’s rice payment delay.

But the claim was dismissed by the opposition and protest leaders as a final struggle of the government to stay in office and blame the others for the delay.

They said the delay was just an excuse as in fact, the underlying truth is that the government has no money to pay because of rampant corruption in the pledging scheme.

Source: http://englishnews.thaipbs.or.th/niwatthamrong-says-government-needs-180-billion-baht-pay-farmers/


-- Thai PBS 2014-01-21

[jollyman]

"Some where over the rainbow" Thai land going for Broke!

[Prbkk]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

[speedtripler]

thats only a drop in the bucket ,thaksin could pay that by himself

especially if his wealth has increased by 450% as estimated in

the years hes been away from thailand

[whybother]

Why didn't the government organise the money for payments BEFORE they called an election? It's not like they didn't know they would need it. A lot of it was due in October.

[Goat Roper]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

[pedro01]

6 billion dollars?

Damn...

[Thaddeus]

Thieves start begging to maintain their position as thieves.

[RubbaJohnny]

A few points from an ignorant foreigner

he difference between 180 less 54.95 billions is 125.05

Is the other 4.95 for the tea fund.

Upon dissolution the house supply was no longer possible.

As the 2nd February cannot possibly produce sufficient quorum the farmers look likely to be unpaid for a while.

While political reforms can wait food on the table seems more urgent.

I foresee a lot of angry farmers ,how they will behave and who leads them will be crucial.

However floored rice subsdy or any subsidy once promised folks have a habit of spending it weddings babies tractors etc.The seconary disaster which is a corollary is that unless finance is timelythe next harvest will be in jeopardy.

While bye elections in the South will take time and drag out the process the disorder and permanent damage to whole swathes of Esan will be painful.

[JoeThePoster]

Thai Commerce Minister says govt needs 180 billion baht to pay rice farmers

If they behave, they can borrow it from my hi-so chinese wife.

[tangcoral]

6 billion dollars?

dam_n...

nearly 3,000 baht per every man woman child in LOS

[EricBerg]

If that's the best he can come up with, it's not much. EC done it and we'll get the money anyway. Sad excuse for a minister.

[Robby nz]

Prbkk, on 21 Jan 2014 - 11:00, said:

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

If that is the case then why don't they dip into it and pay the farmers ?

Oh yes that's right they cant because they are only a caretaker Govt and the law doesn't allow them to.

So the farmers wont get paid because the incompetent bunch of fools forgot to make allowances to pay them.

Now they try to blame the EC but the farmers aren't buying their BS.

They would have been sure to make allowance for their own pay and Xmas bonuses.

[smedly]

This has FA to do with the EC - they have clear guidelines and rules which they are following, PTP has already been told by the EC that it will not approve such a loan as it is against the law - why is PTP bringing it up again and again and now trying to blame the EC for the none payment

PTP are also stating they will seek loans from other sources which again is against the law for a caretaker administration -

this is exactly why there are protests going on in Thailand - PTP cannot run the country without cheating and breaking the law - THEY NEED TO GO NOW - RIGHT NOW

[poisonus]

If the EC endorses the government’s 130 billion baht loans, the money will be enough to pay 20 million farmers or 4-5 million households

I thought it was only 60,000 waiting.

He said if this request is rejected, the government has a plan to seek loans from other sources, both domestic and overseas, adding that it will not seek from banks.

You will be breaking the law and the constitution (yet again) because ALL borrowing needs to go through the EC... You wouldn't get it anyway, you are bankrupt and your credit score is <deleted>.

He said if the EC is “cruel” and rejects its request, the government a contingency plan to cope with.

A very good way to piss off the people you are about to go 'cap in hand' to.... don't ya think?

[DaamNaam]

Petty cash for Shinawatthefarkra..

[Prbkk]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

Because some people like to raise the speculation that Thailand cannot meet its debts. It can...plenty of reserves, a healthy bottom line, even in the context of some bad policies. This not like the govts following the last coup...they ran mega deficits of hundreds of billions of Baht

[billd766]

6 billion dollars?

dam_n...

nearly 3,000 baht per every man woman child in LOS

I assume that also means tax paying farmers too.

[Goat Roper]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

Because some people like to raise the speculation that Thailand cannot meet its debts. It can...plenty of reserves, a healthy bottom line, even in the context of some bad policies. This not like the govts following the last coup...they ran mega deficits of hundreds of billions of Baht

My question is still the same. The government owes and wants to borrow Baht 180 Billion to pay farmers for rice pledges, what has that go to do with foreign reserves? Where is the collateral for this massive loan, the foreign reserves?

[soi41]

Even with the beggar-bowl in hand, they can't stop lying!!

"will be enough to pay 20 million farmers"

So every third person in Thailand is now a ricefarmer??

Solution: Let the EC superwise and oversee the payment to the farmers, who have already pledged their rice and after that payment, not a single grain more bought at stupid prices!!

Or is that too simple??

[casualbiker]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

Because some people like to raise the speculation that Thailand cannot meet its debts. It can...plenty of reserves, a healthy bottom line, even in the context of some bad policies. This not like the govts following the last coup...they ran mega deficits of hundreds of billions of Baht

Really! There are plenty of reserve ... but the Democrats ran Mega deficit ... get real!

The national budget has gone up 700 billion baht with Phua thai since the Democrats were in power. 2014 budget stands at over 2.5 trillion baht up from 1.8 trillion.

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

[Thaddeus]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

Because some people like to raise the speculation that Thailand cannot meet its debts. It can...plenty of reserves, a healthy bottom line, even in the context of some bad policies. This not like the govts following the last coup...they ran mega deficits of hundreds of billions of Baht

This 'healthy bottom line' you keep mentioning, where is that information coming from?

The Government?

If there is a 'healthy bottom line' why are the farmers not being paid from that?

[pedro01]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

According to the IMF, this is not a drop in the ocean at all.

[Gulfsailor]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

Because some people like to raise the speculation that Thailand cannot meet its debts. It can...plenty of reserves, a healthy bottom line, even in the context of some bad policies. This not like the govts following the last coup...they ran mega deficits of hundreds of billions of Baht

Thailand can still pay its debts, true. But with a scheme like this it is changing quickly. Foreign reserves are at 167 billion usd, and debt 120 billion. So there is room. But with the proposed infrastructure loan of 2.2 trillion baht (70b usd) it gets dangerous.

Regarding previous deficits compared to now; isn't the rice pledge scheme an of-budget deal? In that case realistically you can also count it as hundred of billions baht in deficit, as that money isn't coming back.

[tangcoral]

If I was owed that much money, I too would hoot and holler like there is no tomorrow.

[Crushdepth]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

I just can't understand why they don't have the money to hand, or at least contingency arrangements to cover a shortfall. It's hard to believe their planning is *that* bad.

[Prbkk]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

You like TS cannot get your mind's off Thailand's foreign reserves, why is that?

Because some people like to raise the speculation that Thailand cannot meet its debts. It can...plenty of reserves, a healthy bottom line, even in the context of some bad policies. This not like the govts following the last coup...they ran mega deficits of hundreds of billions of Baht

Thailand can still pay its debts, true. But with a scheme like this it is changing quickly. Foreign reserves are at 167 billion usd, and debt 120 billion. So there is room. But with the proposed infrastructure loan of 2.2 trillion baht (70b usd) it gets dangerous.

Regarding previous deficits compared to now; isn't the rice pledge scheme an of-budget deal? In that case realistically you can also count it as hundred of billions baht in deficit, as that money isn't coming back.

yes, true. The point from another poster about the previous govts not running deficits is nonsense

[Prbkk]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

I just can't understand why they don't have the money to hand, or at least contingency arrangements to cover a shortfall. It's hard to believe their planning is *that* bad.

agree...but they can't sell the rice...no cash

[robblok]

I am really divided on this. I really dislike the current government and they are 100% to blame.. but now the farmers are in trouble. That is not a good thing at all.

Maybe Taksin can loan it.. he must have stolen more as this by now.

Seriously i dont like that the farmers are the pawns here... but giving in by the EC is also not a good thing. This government should go. More and more skeletons from the rice scam appear. I hope its enough to get rid of the reds for once and always. Maybe if the farmers hurt enough they will think twice for voting PTP. But honestly i doubt it.

[robblok]

..a drop in the ocean relative to reserves ( not that I support the scheme as structured)

I just can't understand why they don't have the money to hand, or at least contingency arrangements to cover a shortfall. It's hard to believe their planning is *that* bad.

agree...but they can't sell the rice...no cash

That is because of the stupid rice scam.. they can sell it but nobody wants it at the price they must sell. Else even more losses come out.