Thai govt plans rice auction next week

[webfact]

Govt plans rice auction next week
Erich Parpart,
Petchanet Pratruangkrai
The Nation


Niwatthumrong Boonsongpaisan

BANGKOK: -- The caretaker Commerce Ministry will try to release 500,000 tonnes of rice from its stockpiles via auction next week, while Minister Niwatthumrong Boonsongpaisan says he has approved the sale of another 860,000 tonnes.

This is to ensure that the government will earn additional of Bt10 billion this month to fund the rice-pledging project. It has come under heavy pressure from farmers over delayed payments for their crops, but faces restrictions on fund-raising because of its caretaker status.

Niwatthumrong said the ministry had already returned Bt180 billion to the Bank for Agriculture and Agricultural Cooperatives, which is responsible for financing the programme.

The ministry has also drawn up a plan to sell rice to the Philippines after Vietnam just won a bid with Manila to supply 500,000 tonnes of rice.

Krungthai Bank's board yesterday refuted "misleading" reports on social networks that it would provide loans for the rice-pledging project.

Payungsak Chartsutipol, chairman of KTB's board of executive directors, said he had not received any proposal from bank president Vorapak Tanyawong on this matter. Vorapak has also previously denied rumours that KTB's board would consider such a loan.

Though it is a state-owned bank, KTB is a listed company and regulated by the Bank of Thailand, and therefore will comply with the law and good-governance practices, Payungsak said.

He also denied that caretaker Finance Minister Kittiratt Na-Ranong had ever asked him about a loan for the project, and pointed out that no news on this matter had reached him yet because it had to pass through management.

"Whatever agenda the board discusses will be proposed by the management, and the board meeting [on Tuesday] will contain a normal agenda," he said.

Meanwhile, the Public Debt Management Office cancelled a meeting scheduled for yesterday with financial institutions to discuss the legal issues in regard to loans for the pledging project.

The Office of the Auditor-General on Friday warned Kittiratt that the government should strictly comply with the law in regard to funds for the rice-pledging scheme, according to the Isara news agency.

"The office was worried [about] operations of the government and related agencies involving the rice-pledging project. Securing funds to pay for paddy pledged in the 2013-14 main crop would have to comply with the law and not be against the Constitution. If the action of seeking funds is found to breach the law, those who approve [such action] or who are involved with the action will take responsibility for damages that may occur," Isara said, citing the office's letter to the caretaker finance minister. In another letter dated January 30 to caretaker Prime Minister Yingluck Shinawatra, the office said the government should consider suspending the pledging project for the next crop after problems had been found with every process of the scheme, resulting in several hundreds of billions of baht in revenue losses.


-- The Nation 2014-02-04

[Robby nz]

Niwatthumrong said the ministry had already returned Bt180 billion to the Bank for Agriculture and Agricultural Cooperatives, which is responsible for financing the programme.

But that is over 2 years and in that time they have spent over 700 billion

The ministry has also drawn up a plan to sell rice to the Philippines after Vietnam just won a bid with Manila to supply 500,000 tonnes of rice.

They don't need it from Thailand now, they are buying are buying it from Vietnam.

Payungsak Chartsutipol, chairman of KTB's board of executive directors, said he had not received any proposal from bank president Vorapak Tanyawong on this matter. Vorapak has also previously denied rumours that KTB's board would consider such a loan.

But from yesterdays news :

A meeting is taking place today among the bank's executives. It is reported that loans of Bt130 billion to the government, to be given at Bt20 billion/month, might be considered.

So they may consider it today.

[ikurauni]

It does not look good but the government has to get the money for the farmers.

I feel very sorry for the rice farmers who were cheated.

This rice scam really explains how corrupted the Yingluck administration is.

She screwed up a lot of things and I understand why many people want her to resign.

[Ricardo]

IIRC wasn't it FM-Surapong, who had announced a firm G2G-deal with the Philippines, during/following a diplomatic/trade visit some months ago ? And now it turns out that Vietnam has beaten-out Thailand, to win a major export-sale, instead. Ouch !

And the caretaker Commerce Ministry announces a further (routine) attempt to sell stocks into the domestic-market, just after the end of the main annual harvest which has seen some stocks by-passing the government-scheme, great timing there ! But will they accept a low-enough price to actually shift the stuff, and will the payments be received soon-enough, to help relieve the poor rice-farmers' pain ?

Plenty for the Office of the Auditor-General to mull, ponder or call for further study in this on-going mess.

[noitom]

Thais in their magnanimous generosity should give this rice away to starving people in Africa.

[p_brownstone]

I don't understand what these clowns are talking about when they say they will :

"release 500,000 tonnes of rice from its stockpiles via auction next week"

It sounds as though they are jealously hoarding the rice because so many people want to buy it!

Open all the da#m warehouse doors and shout "make me an offer"!

Patrick

[trogers]

It does not look good but the government has to get the money for the farmers.

I feel very sorry for the rice farmers who were cheated.

This rice scam really explains how corrupted the Yingluck administration is.

She screwed up a lot of things and I understand why many people want her to resign.

If a PM could not place 2 voting papers in their correct boxes, how can an administration led by her not screw up with tasks more complicated then placing 3 voting slips correctly into their respective boxes?

[oldthaihand99]

It does not look good but the government has to get the money for the farmers.

I feel very sorry for the rice farmers who were cheated.

This rice scam really explains how corrupted the Yingluck administration is.

She screwed up a lot of things and I understand why many people want her to resign.

If a PM could not place 2 voting papers in their correct boxes, how can an administration led by her not screw up with tasks more complicated then placing 3 voting slips correctly into their respective boxes?

I don't know. Ask Clinton if oral counts as sex. Or Nixon if Watergate was ok. Shall i go on ad infinitum?

[Ricardo]

I don't understand what these clowns are talking about when they say they will :

"release 500,000 tonnes of rice from its stockpiles via auction next week"

It sounds as though they are jealously hoarding the rice because so many people want to buy it!

Open all the da#m warehouse doors and shout "make me an offer"!

Patrick

Quite.

The real problem being that those market-prices are substantially-lower, than what the government paid for their stocks, even before adding-on storage & fumigation & transport & shrinkage, let-laone fraud & corruption.

So the mere act of selling a portion of the rice crystallises part of the losses, and implies write-offs or extra budget-needed, they would be forced to acknowledge & accept that they've made a major & expensive cock-up with this scheme.

I wouldn't expect an enthusiastic-rush, to accept responsibility for doing that, let-alone the loss-of-face involved, would you ?

So they play the ancient & venerable game of 'poo-yai pronounces', and hope for another Cabinet-reshuffle or even a new government, to solve their dilemma for them. Meanwhile the poor rice-farmers pay the immediate-price, with the taxpayer to pick-up the eventual bill, at sometime in the future.

Edited February 4, 2014 by Ricardo

[trainman34014]

Thais in their magnanimous generosity should give this rice away to starving people in Africa.

No; they should give it away to the starving people in Thailand, and believe me there are still plenty of them out there in the Boonies. And please don't tell me they are all riding around in Pick-Up's bought on credit and using I Pad's financed in the same way, it's nonsense, there is a lot of genuine poverty in this country ignored by the rich and ignorant.

[Showbags]

I like to use a phrase I see on TV a lot lately....

'let the games begin'.......

[JRSoul]

"The ministry has also drawn up a plan to sell rice to the Philippines after Vietnam just won a bid with Manila to supply 500,000 tonnes of rice."

Why didn't they draw up a plan to sell rice to the Philippines BEFORE Vietnam won a bid with Manila to supply 500,000 tonnes of rice? Could it be that revealing the loss involved in a sale at a competitive price would be electorally embarrassing?

[mightyatom]

So they will sell some of the rice off next week to raise 10 billion baht for the farmers?

With the expenses attached that means that about 4 billion should make its way to the BACC to fund payments to farmers, leaving just 136 billion of debt left.

Unless of course, all of a sudden these 60% (ish) wotrth of expenses miraculously disappears overnight and suddenly becomes cheaper (or almost free) in which case a much larger amount makes its way to the BACC to pay farmers.

I suggest this would raise the question 'what was the difference in the expenses between now and then?'

Answer.... Nobody has the balls to continue the thieving of the money while every move is now being watched and scrutinized at every level.

A big conundrum for the government.... all future rice sales are now going to be dissected to see where the money disappears. The government needs it to look consistent with the past..... Not easy when you are now being watched is it?

I see an almighty shit storm on the horizon and many chartered flights to Dubai in the very near future.

I suggest that the courts issue to revoke the passports of all under investigation until this is sorted out one way or the other, and yes... That means Yingluck's too. I would also suggest that the courts move to freeze every bank account of those under investigation, so they can check where money is or has been moving around.

Finally, I suggest that someone takes the US government to one side and quietly explains the rice scheme to them, so when they release their comments, they are at least a little better informed about exactly who's back they (think) they have.

Edited February 4, 2014 by mightyatom

[DrTuner]

That's the smile I remember from the pay days.

[Bakseeda]

Thais in their magnanimous generosity should give this rice away to starving people in Africa.

No; they should give it away to the starving people in Thailand, and believe me there are still plenty of them out there in the Boonies. And please don't tell me they are all riding around in Pick-Up's bought on credit and using I Pad's financed in the same way, it's nonsense, there is a lot of genuine poverty in this country ignored by the rich and ignorant.

I don't see any poverty in Thailand.. where did you see poverty in this rich country..! You are joking are you..?

[edwinchester]

Thais in their magnanimous generosity should give this rice away to starving people in Africa.

No; they should give it away to the starving people in Thailand, and believe me there are still plenty of them out there in the Boonies. And please don't tell me they are all riding around in Pick-Up's bought on credit and using I Pad's financed in the same way, it's nonsense, there is a lot of genuine poverty in this country ignored by the rich and ignorant.

I don't see any poverty in Thailand.. where did you see poverty in this rich country..! You are joking are you..?

Where do you live?

Poverty exists in many Thai villages. Take a good look next time you are passing through. Or maybe look at the tin shacks lining the railways in Bangkok.

[Showbags]

Thais in their magnanimous generosity should give this rice away to starving people in Africa.

No; they should give it away to the starving people in Thailand, and believe me there are still plenty of them out there in the Boonies. And please don't tell me they are all riding around in Pick-Up's bought on credit and using I Pad's financed in the same way, it's nonsense, there is a lot of genuine poverty in this country ignored by the rich and ignorant.

I don't see any poverty in Thailand.. where did you see poverty in this rich country..! You are joking are you..?

Where do you live?

Poverty exists in many Thai villages. Take a good look next time you are passing through. Or maybe look at the tin shacks lining the railways in Bangkok.

I think its another candidate for Simon43's thread....should put it over there for judgement.

[Suriya4]

I don't understand what these clowns are talking about when they say they will :

"release 500,000 tonnes of rice from its stockpiles via auction next week"

It sounds as though they are jealously hoarding the rice because so many people want to buy it!

Open all the da#m warehouse doors and shout "make me an offer"!

Patrick

Quite.

The real problem being that those market-prices are substantially-lower, than what the government paid for their stocks, even before adding-on storage & fumigation & transport & shrinkage, let-laone fraud & corruption.

So the mere act of selling a portion of the rice crystallises part of the losses, and implies write-offs or extra budget-needed, they would be forced to acknowledge & accept that they've made a major & expensive cock-up with this scheme.

I wouldn't expect an enthusiastic-rush, to accept responsibility for doing that, let-alone the loss-of-face involved, would you ?

So they play the ancient & venerable game of 'poo-yai pronounces', and hope for another Cabinet-reshuffle or even a new government, to solve their dilemma for them. Meanwhile the poor rice-farmers pay the immediate-price, with the taxpayer to pick-up the eventual bill, at sometime in the future.

The scheme was never meant to be a profit making operation. In short, if farmers can get better price elsewhere, why sell it to government.

The scheme from day 1 is to give freebie to farmers at the expense of tax payers (same same in EU farm subsidy).

If you are Yingluck supporter: call is an enrich program for the farmers.

If you are Suthep supporter: cal;l it a waste of Bangkok people's tax money.

Everyone is yelling that government is a making big lost. It is suppose to be that way isn't it?

Edited February 4, 2014 by Suriya4

[Scamper]

" ... would have to comply with the law and not be against the Constitution. If the action of seeking funds is found to breach the law, those who approve [such action] or who are involved with the action will take responsibility for damages that may occur "

Such are the clear and consistent warnings from the Auditor-General to Pheu Thai and this mad, mad effort to continue this unconscionable effort. If this auction of rice does go through, it will be stunning to see what kind of prices will be offered for it, as the Yingluck administration opts to compete with Vietnam's rice exporting to the Philippines ( at close to twice the price ! ). No matter how this is cut, the losses to the farmers, to the administration, to the credit rating of the country, as indeed to the rice itself now sitting idly in silos - this is a scheme that - despite what Pheu Thai thinks - has come to an end.

[ggold]

It does not look good but the government has to get the money for the farmers.

I feel very sorry for the rice farmers who were cheated.

This rice scam really explains how corrupted the Yingluck administration is.

She screwed up a lot of things and I understand why many people want her to resign.

If a PM could not place 2 voting papers in their correct boxes, how can an administration led by her not screw up with tasks more complicated then placing 3 voting slips correctly into their respective boxes?

I don't know. Ask Clinton if oral counts as sex. Or Nixon if Watergate was ok. Shall i go on ad infinitum?

what has that got to do with the rice scam?

[thaipod]

I did'nt think this goverment is in any position to do anything at this present time especially govt to govt contracts as they have not been sworn in . They need to do something there is about to be a huge caravan of farmers heading towards Bangkok in the next couple of day's.

[Bkkbound]

This is a version of the dead parrot sketch... Very comical except that some people are suffering severe harship and worry..

[Bkkbound]

Thais in their magnanimous generosity should give this rice away to starving people in Africa.

No; they should give it away to the starving people in Thailand, and believe me there are still plenty of them out there in the Boonies. And please don't tell me they are all riding around in Pick-Up's bought on credit and using I Pad's financed in the same way, it's nonsense, there is a lot of genuine poverty in this country ignored by the rich and ignorant.

I don't see any poverty in Thailand.. where did you see poverty in this rich country..! You are joking are you..?

It beggars belief that people like you are allowed loose on society. But your drivel confirms what the vast majority of people on this site would realise, you are a moron.

[Ricardo]

"The ministry has also drawn up a plan to sell rice to the Philippines after Vietnam just won a bid with Manila to supply 500,000 tonnes of rice."

Why didn't they draw up a plan to sell rice to the Philippines BEFORE Vietnam won a bid with Manila to supply 500,000 tonnes of rice? Could it be that revealing the loss involved in a sale at a competitive price would be electorally embarrassing?

FM Surapong was indeed in Manila several months ago ... when "Foreign Minister Surapong Tovichakchaikul proposed a direct trade of Thailand's Hom Mali rice with traders in the Philippines."

http://www.thaivisa.com/forum/topic/648247-thai-fm-surapong-eyes-hom-mali-rice-sale-to-philippines/

He was pitching to sell Thai rice to the Philippines, competing against Vietnamese exports, and claimed that "He expects that Thailand will quote about Bt45 per kg for the rice, against the quotation of Bt60 from Vietnam.", which makes the success of Vietnam in winning this contract all-the-more surprising.

Perhaps he got his selling-price wrong ?

Edited February 4, 2014 by Ricardo

[BigRick]

Wonder if they are going to market it as vintage rice? Or extra protein Essan rice now with more bugs!