Thai govt plans to seek Bt130 billion to pay angry farmers

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Govt plans to seek Bt130 billion to pay angry farmers
Piyanart Srivalo,
Suphannee Pootpisut
The Nation

BANGKOK: -- The caretaker government is considering seeking additional funds totalling Bt130 billion to subsidise the rice-pledging scheme through bank loans and the issuing of bonds, following a Council of State decision that this may be legally possible despite restrictions related to the looming election.

The latest move is expected to appease angry farmers, who are threatening to escalate their protests nationwide as a result of not receiving payment for overdue rise pledges, owed to them for the 2013-14 crop. Some farmer groups have also threatened to join the People’s Democratic Reform Committee (PDRC) protests in Bangkok today if their demands are not met.

That decision could help boost Pheu Thai Party's popularity in the upcoming election, as farmers have threatened to drop their support for the party if they are not compensated for rice submitted to the pledging scheme since October.

The Council of State sent a letter to the government on Thursday saying that it could seek more funds for the rice-pledging scheme, secretary-general Chukiat Rattanachaicharn told Krungthep Turakij newspaper.

Chukiat said that after consideration, council members agreed that the caretaker government's fund-seeking plan for the rice pledging scheme was not a new project and could lawfully go ahead.

Payment for rice pledges during the latest harvest season from October 2013 to February 2014 were approved in a Cabinet meeting on September 3, ahead of the House dissolution on December 9.

Chukiat added that according to the council's consideration, many farmers had entered the project, and this was considered a loan obligation, so the government would have to seek funds to manage debts incurred from the project.

Under the scheme, the government needs at least Bt130 billion more to pay for the pledged rice for the 2013-14 season. About 10.4 million tonnes of extra paddy - worth Bt167 billion - is expected to gradually enter the scheme from the latest harvest.

The government has so far paid Bt50 billion to farmers, but needs additional funds to pay off farmers still waiting to be compensated.

The Bank for Agriculture and Agricultural Cooperatives (BAAC) expects that the amount due in payment for the paddy under the scheme will reach Bt190 billion when the scheme ends in February.

"This means that rice pledging for the latest main crop comes under the conditions of Section 181 (3) of the constitution," said Chukiat, which meant it was lawful.

The Public Debt Management Office (PDMO) cited in a report on Thursday that once it receives the green light from the council it could obtain more funds, and would begin acquiring around Bt10 billion a week by way of bank loans and the issuing of bonds.

PDMO deputy director general Suwit Rojanavanich said yesterday that the office would initially open bidding for short-term loans of between Bt10 and Bt13 billion. The amount for short-term loans could later be converted to long-term loans with the issuance of bonds. However, he said the Office needed to wait for written advice from all of the four organisations, namely Cabinet, the Council of State, the Election Commission, and the BAAC, to ensure it could obtain the additional funds.

-- The Nation 2014-01-25

[JRSoul]

"About 10.4 million tonnes of extra paddy - worth Bt167 billion"

Lie ! That is the inflated price to be paid, much more than it is worth.

[EricBerg]

So the scam can continue. No doubt the missunderstood fugitive will find the big loan. Cambodia? Have a deal with the oil in the gulf in return? So the feb 2 election must be stopped or deemed unlawful. Allowing the shinaclan a few more years of stealing is no option. Thai people will be paying for decades for the 2.2 trillion loan.

Edited January 24, 2014 by EricBerg

[thesetat2013]

I dont think the farners would be happy knowing it could take up to 13 weeks after this got approved before they all would be paid.

Would anyone like to bet that they would pay the farmers in the north first heehee

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[LuckyLew]

IMO this whole rice scam and issuing bonds at inflated interest rates is gonna lead Thailand into a total financial collapse. Add the 2.2 trillion in loans they cannot repay for 50 years and it is game over if the PTP are allowed to continue ripping of the Thai people so openly and blatantly

Sure would be nice if the people in power cared about Thailand and its people

[Bluespunk]

More good money being thrown after bad. This scheme has utterly failed and PT cannot afford it, yet to stay in power they have to pay up. They are putting their needs ahead of the good of the economy of Thailand and the long term future (if it any longer has one) of Thailand's rice industry. To do so they are prepared to sacrifice the BAAC, no moral compass at all, all they crave is to hold on to power at all costs. Stupid, stupid, stupid.

Edited January 25, 2014 by Bluespunk

[CraigSchuler]

Why not just borrow it from the police dept? they always seem to have extra cash!

[scorecard]

I dont think the farners would be happy knowing it could take up to 13 weeks after this got approved before they all would be paid.

Would anyone like to bet that they would pay the farmers in the north first heehee

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

Another 13 weeks (3 months) (with no guarantee that the funds can be found) on top of numerous confusing / unkept promises. Agree, very doubtful the farmers will agree.

[ezzra]

I'm happy to help to raise the 130 billion with what I have got in my piggy bank... :-)

[kurnell]

So who pays for the crop after this one...and the one after that?

[samtam]

Who's going to buy Thai government bonds for this scheme in this environment? Better have a pretty hefty coupon on it.

[iancnx]

How many suitcases needed for 10bn?

Edited January 25, 2014 by iancnx

[zydeco]

Why not just borrow it from the police dept? they always seem to have extra cash!

Or better yet, have the police themselves raise the money! That's the trick! Put up police roadblocks on every major road, highway, and freeway each and every day. Turn every road in Thailand, in effect, into a toll road. But of course rmember to use an inverted toll formula: the larger and more expensive the car, the cheaper the toll.

[AleG]

So who pays for the crop after this one...and the one after that?

They'll burn that bridge when they get to it.

[Lupatria]

Bathism at it's best: If we don't get paid we change sides. However, please respect my vote...

[SOTIRIOS]

....I guess they would not consider bringing back any of the other funds that were reported to have been flow and deposited in HK Banks....

[Baerboxer]

....I guess they would not consider bringing back any of the other funds that were reported to have been flow and deposited in HK Banks....

and any other " Offshore" accounts - British Virgin Isles, Switzerland, UAE, Montenegro etc etc.

No doubt things are spread around. Great to see the international banking community acting with ethics and morals, making sure all very large deposits have been legally acquired and the sources checked

[soalbundy]

Promise ?

I admire Ms Yingluk i really do and when her time comes i would like a piece of the rope as a keepsake

[falangadang]

As sad and hurtful as this is to the Thai rice farmers,.. it's all part of the meltdown factor necessary to bringing down the YL government.

They have shown their true colors and gone from shining saviors to deceitful liars in a short time and this will destroy them in the eyes of their most ardent supporters if it all does go south.

Oh how the mighty have fallen!

[Scamper]

The Thai Council of State is an institution that is under the authority of the prime minister. They have clearly agreed with the administration, despite the ongoing legal challenges to the programme, despite the EC saying no and despite the banks simply refusing to be raided. The payments are going ahead. It's unfathomable. And it now casts the election - particularly among the rice farmers - in a highly cynical light.

[billd766]

The Thai Council of State is an institution that is under the authority of the prime minister. They have clearly agreed with the administration, despite the ongoing legal challenges to the programme, despite the EC saying no and despite the banks simply refusing to be raided. The payments are going ahead. It's unfathomable. And it now casts the election - particularly among the rice farmers - in a highly cynical light.

Reading the OP I think that the payments will not go ahead until the can find someone to lend them the money

That they are looking for a loan now does not mean that they will get one just that they are frantically trying to do it.

An interesting thought would be what happens if nobody will lend them the money.

[Gweiloman]

Apart from the (usual and boring) bad mouthing, does anyone have any realistic and reasonable suggestion as to how the farmers can be paid? Or are you lot saying that the farmers should not be paid?

[Shurup]

BANGKOK: -- The caretaker government is considering seeking additional funds totalling Bt130 billion to subsidise the rice-pledging scheme through bank loans and the issuing of bonds, ...

They're considering seeking in the wrong place. Shinawatras' bank accounts is precisely where they need to seek...

[cornishcarlos]

Maybe the rice farmers should have saved a little from the previous over priced crops ??

But that would be asking far too much...

Whilst I feel for them because they are being royally screwed, to some extent they deserve it..

[waza]

The Thai Council of State is an institution that is under the authority of the prime minister. They have clearly agreed with the administration, despite the ongoing legal challenges to the programme, despite the EC saying no and despite the banks simply refusing to be raided. The payments are going ahead. It's unfathomable. And it now casts the election - particularly among the rice farmers - in a highly cynical light.

This would be the same council of state that said an election postponement is against the constitution, between this inept lot, her caddy and the ice-cream gang, I think "the darling of Issan" is in desperate need of some credible advisors.

[waza]

Maybe the rice farmers should have saved a little from the previous over priced crops ??

But that would be asking far too much...

Whilst I feel for them because they are being royally screwed, to some extent they deserve it..

If you lay down with dogs you get up with fleas. If the farmer sold their rice through the normal channels then they wouldn't get as much but they would be paid already. It was their choice to join this corrupt scheme, that defrauds from the tax payer and now they get a taste of the bitter rewards, that's Karma.

Edited January 25, 2014 by waza

[Shurup]

Not sure why you folks blaming the farmers, everyone would have sold, whatever they were selling, to the higher bidder.

[JRSoul]

Not sure why you folks blaming the farmers, everyone would have sold, whatever they were selling, to the higher bidder.

Perhaps not my daughters.

[cornishcarlos]

Not sure why you folks blaming the farmers, everyone would have sold, whatever they were selling, to the higher bidder.

I'm not blaming them for accepting the inflated premiums but I do wonder why they can't save a small amount for emergency use !!!

However, that is not the Thai way.. We are rich, lets buy a car we can't afford...

So now they are in the <deleted> and for that I do think they need to accept some responsibility, but again not the done thing

[JRSoul]

It has been clear for some time that the rice scam was unsustainable. PTP admitted this, but caved in to their farmers support base when they objected to curtailing it. Now that it is collapsing under a mountain of debt, I am asked to feel sympathy for those involved in a criminal conspiracy to direct tax dollars into their bank accounts.

Sorry, no sale.