Rice-pledging scheme: No loans to pay for rice

[webfact]

RICE-PLEDGING SCHEME
No loans to pay for rice
Suphanee Pootpisut,
Petchanet Pratruangkrai
The Nation


Two protesting rice farmers, wearing the anti-government national flag straps, display their message after intruding into the office of Phitsanulok

Pheu Thai may pay the price at the ballot box for failure to pay farmers

BANGKOK: -- The caretaker government suffered a major setback yesterday when it failed to secure massive loans to pay farmers ahead of Sunday's election. The government seeks loans to pay for crops farmers sold months ago under its flagship rice-pledging programme.

This bad news is likely to hit the ruling Pheu Thai Party hard at the ballot box, after many rice farmers threatened to boycott the election or vote against the party if they were not paid before the election.

Leaders of farmers' groups from all over the country agreed yesterday to start protesting on the streets tomorrow if the government fails to settle what it owes to farmers by today, said Songpol Poonsawat, who represents farmers in Ang Thong.

"This is our response to the government's failure to pay attention to our suffering. We farmers have been waiting for too long," he said.

The government yesterday opened bidding for the first batch of Bt130 billion to be raised through short-term loans. Many of the 34 financial institutions invited by the Finance Ministry avoided the bidding, as there is no clarity on whether the lending would be legitimate.

A Finance Ministry source said it would open the next round of bidding for Bt40 billion in loans.

The next weekly bidding session is scheduled for Tuesday.

"Though some banks joined the bidding, high interest rates were offered, which included risks. This made the Public Debt Management Office [PDMO] cancel the bidding this time," the source said.

Had the auction succeeded, farmers who mortgaged their paddy with the government under the scheme would have been paid by today, as the government claimed - two days ahead of the general election on Sunday.

As scheduled, the first batch of loans from financial institutions under the auction arranged by the PDMO for the Bank for Agriculture and Agricultural Cooperatives (BAAC) totalled Bt20 billion with a 15-year tenor. The open bidding will be made every Tuesday with offers to be submitted before 10am.

The bidding is part of the Bt130-billion funding that the caretaker government is seeking to pay off farmers. The PDMO designed a schedule to gradually borrow from financial institutions up to Bt30 billion a week via bidding until the total amount would reach Bt130 billion as needed.

The PDMO's loan bidding arrangement came after the Council of State gave the opinion that the Finance Ministry could proceed with the Bt130- billion borrowing plan. The ministry had asked for legal advice on whether it was eligible to get that amount of loans as carrying loans.

Piti Tantakasem, chief wholesale banking officer of TMB Bank, insisted that the bank has not participated in the loan auctions for the BAAC because some legal issues needed further study, and the approval of the bank's credit committee was needed.

Teeranun Srihong, co-president of Kasikornbank, cited the same reason, saying the bank did not join the bidding, as it could be not verified legally.

A source from the banking industry said banks had discussed among themselves by phone and agreed that the auction was not a suitable way of lending and that it could affect depositors' trust.

However, the Finance Ministry reportedly threatened the banks with revoking their right to be the ministry's primary dealer if they didn't join the auction.

Despite the disappointment from the government's aborted bridge-financing bidding, the Commerce Ministry has high hopes that foreign banks would be interested.

Caretaker Deputy Commerce Minister Yanyong Phuangrach said the state-owned banks' employees were worrying too much about the lending. They should concern themselves more about the farmers who have been not yet been paid, and allow the banks to lend money.

"The government should be able to earn money and pay farmers as soon as possible, while it may consider not allowing state-run banks to join the rice-pledging project in the future," he said.

Caretaker Commerce Minister Niwatthumrong Boonsongpaisan said seeking funds to support the rice-pledging scheme is the responsibility of the Finance Ministry, while the Commerce Ministry would accelerate selling rice from the state's stockpiles to earn money to pay off the unpaid farmers for paddy pledged.

However, Niwatthumrong could not disclose how long it would take or how much money the ministry could make from rice releases to pay the farmers.

Wichian Phuanglamchiak, president of the Thai Agriculturist Association, has called on employees of government banks to be more sympathetic towards farmers, as millions of them have suffered from the delay in payment under the pledging scheme since October.

"Farmers are suffering tremendously from the late payment under the pledging scheme. We owe the BAAC, fertiliser and pesticide traders, the rice seed company and transportation companies for delivering rice to millers," he said.

If the government banks do not care about farmers, the group of farmers will withdraw their money from those banks and will embargo government banks' services, he said.


-- The Nation 2014-01-31

[EricBerg]

I suppose the caretakers are now hoping the farmers in the north do not read this news before the Sunday election.

[Robby nz]

Even if the auction had been a raised 20 billion it would only have paid a fifth of the farmers, at the most, as they are presently owed over 100 billion.

However, the Finance Ministry reportedly threatened the banks with revoking their right to be the ministry's primary dealer if they didn't join the auction.

Loved that bit, they still seem to think threats and intimidation are the way to get things done.

[dcutman]

LMAO Not even a State Bank will lend this Govt money at a reasonable rate. I would love to know the terms from the bank or two that did bid for this loan. 12 to 24%?

The finane ministry might want to consider loan sharks, I am sure the rice farmers could give them the phone numbers of the ones they are using right now.

[thesetat2013]

I find it hard to believe that not only is the PM willing to get foriegn banks to loan them the money when the local thai banks wont even participate due to the question of its legality but also the gov is even considering continuing the rice scheme which has been a total failure. Does this government CARE at all about the countrieS future or its people?

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

[tullynagardy]

Pheu Thai may pay the price at the ballot box for failure to pay farmers

Yet sadly their main rivals chose to boycott the election despite knowing they had a chance of winning. (Abhisit has been heard in every interview claiming they led at the polls.)

The reasons they did this are obvious and point to a complete rejection of democracy and the accountability that goes with it.

PT will win the election which is breath taking considering how much popular opinion is now against them. Shame on you "Democrats" - an oxymoron if ever I heard one, on a par with the "Democratic Peoples Republic of Korea"

[Thait Spot]

I suppose the caretakers are now hoping the farmers in the north do not read this news before the Sunday election.

If PTP manages to get voted back in, despite the Dems' boycott, they will surely have a massively reduced vote.

The real bad news for them is that even if PTP wins they will be caretaking for several months after and this rice dispute isn't going away.

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[thesetat2013]

RICE-PLEDGING SCHEME

No loans to pay for rice

Suphanee Pootpisut,

Petchanet Pratruangkrai

The Nation

If the government banks do not care about farmers, the group of farmers will withdraw their money from those banks and will embargo government banks' services, he said.

-- The Nation 2014-01-31

This sounds more like the gov is trying to make the local banks look like they dont care about the people so the people will close their accounts.

The gov cant possibly lay the blame on the banks for their inabilty to pay the farmers.

I guess it is everybody elses fault except the gov for this problem.

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

[Jimi007]

Pheu Thai may pay the price at the ballot box for failure to pay farmers

Yet sadly their main rivals chose to boycott the election despite knowing they had a chance of winning. (Abhisit has been heard in every interview claiming they led at the polls.)

The reasons they did this are obvious and point to a complete rejection of democracy and the accountability that goes with it.

PT will win the election which is breath taking considering how much popular opinion is now against them. Shame on you "Democrats" - an oxymoron if ever I heard one, on a par with the "Democratic Peoples Republic of Korea"

Right… I guess if you consider a bought and paid for electorate and utterly corrupt government a democracy…

[whybother]

Pheu Thai may pay the price at the ballot box for failure to pay farmers

Yet sadly their main rivals chose to boycott the election despite knowing they had a chance of winning. (Abhisit has been heard in every interview claiming they led at the polls.)

The reasons they did this are obvious and point to a complete rejection of democracy and the accountability that goes with it.

PT will win the election which is breath taking considering how much popular opinion is now against them. Shame on you "Democrats" - an oxymoron if ever I heard one, on a par with the "Democratic Peoples Republic of Korea"

The Democrats must have decided that reform before election was more important than them supposedly winning.

Sent from my phone ...

[jalansanitwong]

Most farmers cant read or dont buy newspapers which is a bonus to the PTP.

They might just get away with it.

Ive withdrawn all my money from Thai banks. First time ive ever done this.

[GeorgeO]

I find it hard to believe that not only is the PM willing to get foriegn banks to loan them the money when the local thai banks wont even participate due to the question of its legality but also the gov is even considering continuing the rice scheme which has been a total failure. Does this government CARE at all about the countrieS future or its people?

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

Not only is it such a total failure, they are content to put any future government into hock for the next 15 years in order to bail themselves out of their current tight spot.

There is no real need for anyone to try to convince them of the folly of it all now; whether or not they have yet realised it, the rice scheme is already dead.

Are there really any farmers who are still content to pass on their rice to the government, as opposed to selling it privately?

[MGP]

Where are the comments from the Thaksinista falangs?

[thesetat2013]

Most farmers cant read or dont buy newspapers which is a bonus to the PTP.

They might just get away with it.

Ive withdrawn all my money from Thai banks. First time ive ever done this.

Perhaps you are correct however, they dont need to know how to read and write to understand they are not getting paid for their work. So PTP really f_____d up on this count

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[Ricardo]

One can't blame Thai banks, for declining to get involved in this, they have depositors & shareholders to consider.

And the government's inept handling of this mess, over the past several months, hardly inspires confidence.

'White lies' and repeatedly-broken promises don't keep things going forever.

Hope that something is able to be sorted, shortly after the election, for the farmers' sake.

[Scamper]

" Caretaker Deputy Commerce Minister Yanyong Phuangrach said the state-owned banks' employees were worrying too much about the lending. They should concern themselves more about the farmers who have been not yet been paid, and allow the banks to lend money. "

To be a Pheu Thai cabinet minister means to follow shameless acts with equally shameless statements. The banks are not interested in loaning massive amounts of money that have no hope of ever being paid back, and putting the people who entrusted their life savings in their banks in jeopardy. The Yingluck administration is now down to panhandling and presiding over " loan auctions ", as the need to buy votes becomes an addiction that has long past the point where it can be satisfied.

[lovetotravel]

I find it hard to believe that not only is the PM willing to get foriegn banks to loan them the money when the local thai banks wont even participate due to the question of its legality but also the gov is even considering continuing the rice scheme which has been a total failure. Does this government CARE at all about the countrieS future or its people?

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

Not only is it such a total failure, they are content to put any future government into hock for the next 15 years in order to bail themselves out of their current tight spot.

There is no real need for anyone to try to convince them of the folly of it all now; whether or not they have yet realised it, the rice scheme is already dead.

Are there really any farmers who are still content to pass on their rice to the government, as opposed to selling it privately?

I think the problems is, most farmers pledged their rice many months ago as the prices were very high. Selling privately now will basically give you a net loss on your harvest.

This is quite serious for the farmers. Those who pledged their rice, as guaranteed by the government, are still waiting for payments many months down the road. They have loans to pay for the labor and materials they used for their rice harvest. Many resorted to loan sharks who are now using standard tactics to collect. It isn't good. I truly feel sorry for these people. They are just hard working farmers duped by their government.

[Suriya4]

One can't blame Thai banks, for declining to get involved in this, they have depositors & shareholders to consider.

And the government's inept handling of this mess, over the past several months, hardly inspires confidence.

'White lies' and repeatedly-broken promises don't keep things going forever.

Hope that something is able to be sorted, shortly after the election, for the farmers' sake.

Thai banks do want to get involved. But they have put in a very high offer on interest.

Simple supply & demand, factoring in all risk.

[tomyummer]

Everyone knows that in the bigger picture this was a planned eminent domain scheme by the government to reclaim land currently used by farmers across the nation. Promise to buy their rice at a favorable price, keep them waiting for payment, force them to take loans at government banks using their land as collateral, then screw them when they can't repay the loan.

Wow that Thaksin fellow is one smart dude. Really bleeds the country across all areas where wealth lies awaiting for the picking.

Next, Thai Airways....

Edited January 31, 2014 by tomyummer

[worgeordie]

Whats the Government going to use for collateral for

bank loans.....Rice !

regards Worgeordie.

[JRSoul]

Pheu Thai may pay the price at the ballot box for failure to pay farmers

Yet sadly their main rivals chose to boycott the election despite knowing they had a chance of winning. (Abhisit has been heard in every interview claiming they led at the polls.)

The reasons they did this are obvious and point to a complete rejection of democracy and the accountability that goes with it.

PT will win the election which is breath taking considering how much popular opinion is now against them. Shame on you "Democrats" - an oxymoron if ever I heard one, on a par with the "Democratic Peoples Republic of Korea"

If you can't spin the bad news, change the subject.

[rogerdee123]

I find it hard to believe that not only is the PM willing to get foriegn banks to loan them the money when the local thai banks wont even participate due to the question of its legality but also the gov is even considering continuing the rice scheme which has been a total failure. Does this government CARE at all about the countrieS future or its people?

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

They only care about saving face .... no matter what it costs the country.

[CraigSchuler]

Just a thought......Why not at least give them back their rice?

[rogerdee123]

Where are the comments from the Thaksinista falangs?

don't worry .... they will be asking "where is the evidence" ... as soon as they wake up in Europe

[ratcatcher]

Most farmers cant read or dont buy newspapers which is a bonus to the PTP.

They might just get away with it.

Ive withdrawn all my money from Thai banks. First time ive ever done this.

Farmers don't need newspapers or the internet to know just what a mess this government has made of the rice scam. They have a network of co-operatives, mobile phones, they talk to each other. All those nice shiny Isuzu and Vigos will have to be paid for and when there's no cash, we all know what happens. And when that happens, farmers get mad.

Farmers may be portrayed sometimes as simple folk, but in fact they are smarter than this lot ruining the country.

[harrycallahan]

Democracy at work: governments screw up and the informed electorate vote for the alternative.

No need for a tantrum.

[Baerboxer]

Everyone knows that in the bigger picture this was a planned eminent domain scheme by the government to reclaim land currently used by farmers across the nation. Promise to buy their rice at a favorable price, keep them waiting for payment, force them to take loans at government banks using their land as collateral, then screw them when they can't repay the loan.

Wow that Thaksin fellow is one smart dude. Really bleeds the country across all areas where wealth lies awaiting for the picking.

Next, Thai Airways....

Yep real smart. He'll make sure the amply and unusually enriched Shin clan buy up large tracks of land - which he will then sell off in some way or long term lease to Middle East government proxies hungry for good farming land as part of their food security plan. Watch for law changes to facilitate this should he get back.

Truly a global player now. All financed from Thailand plc - a family business (he hopes).

The poor Thai farmers still being bribed, brainwashed and intimidated into voting for the goons who will steal their land and keep them impoverished.

[Baerboxer]

Democracy at work: governments screw up and the informed electorate vote for the alternative.

No need for a tantrum.

That's the problem. The electorate isn't informed here. They are lied to, cheated and ignored - until election time, when they are bribed, fed bullshit excuses for non performance and made silly promises, and intimidated into voting for who the head boy says.

My in-laws are still waiting payments, but they will vote for PTP - they want the bribe and are scared shit less to do otherwise!!

[Nickymaster]

Pheu Thai may pay the price at the ballot box for failure to pay farmers

Yet sadly their main rivals chose to boycott the election despite knowing they had a chance of winning. (Abhisit has been heard in every interview claiming they led at the polls.)

The reasons they did this are obvious and point to a complete rejection of democracy and the accountability that goes with it.

PT will win the election which is breath taking considering how much popular opinion is now against them. Shame on you "Democrats" - an oxymoron if ever I heard one, on a par with the "Democratic Peoples Republic of Korea"

Abhisit's stand on the election is very clear: At this moment it will not solve any problems regardless who wins, therefor the Democrats prefer not to join without having reform!

[Halion]

The Thai farming community is getting shafted by a highly corrupted political entity who they themselves empowered owing to their lack of intellect and manipulated partisan mentality. To a great extent they have brought this fiasco down on their own heads and they have accepted this governments ongoing hollow promises of your checks in the post.. Nobody indeed deserves to be in this position however, you get what you vote for and they voted to be cannon fodder.