Rice Mills asked to pay part of pledged value to Thai farmers

[webfact]

Rice Mills asked to pay part of pledged value to farmers



BANGKOK, 7 February 2014 (NNT) – The Ministry of Commerce asked rice mill owners yesterday, to provide 50-60% of the pledged value owed to rice growers, until the Bank for Agriculture and Agricultural Cooperatives (BAAC) could pay the rice growers in full.

The Deputy Commerce Minister Yanyong Phuangrach, confirmed that the Thai Rice Mills Association had been asked to help provide the money to farmers. The amount would then be paid back to them by the farmers after the BAAC first becomes able to pay the farmers in full. The government will seek approval from the Election Commission to allocate 1.2 billion baht from the central budget to provide interest payments to the rice mills and farmers. If the rice mill owners agree to the proposal, the scheme is expected to be initiated within the month.

Manat Kitprasoet, president of the Thai Rice Mills Association, reportedly said the association does not object to the proposal, as it would help alleviate the plight of farmers. However, such a novel approach requires detailed deliberation and its implementation depended on the consent of each rice mill owner.

However, the Thai Rice Farmers Association President Prasit Bunchoei, has expressed a belief that the measure cannot be implemented. He reasoned that the caretaker government did not have the authority to make guarantees to the rice mills, regarding the money the mills would supply to rice farmers.


-- NNT 2014-02-07

[Showbags]

A government that needs to ask for help from rice millers.....amazing thailand

[soundman]

Surprised they would consider it when the government has defaulted on the storage fees payable to the mills.

[JesseFrank]

The Deputy Commerce Minister Yanyong Phuangrach, confirmed that the Thai Rice Mills Association had been asked to help provide the money to farmers. The amount would then be paid back to them by the farmers after the BAAC first becomes able to pay the farmers in full.

Do these people never give up ?

The farmers gonna be happy to hear this, so if the BAAC nevr becomes able to pay the farmers, as it looks right now, the farmers gonna be in even more debt as they will be responsible to pay back the millers.

I wonder if the farmers were consulted on this proposition.

[siampolee]

So it seems as if the millers are not being paid so then their debtors ask them to pay the farmers .

I

Edited February 7, 2014 by siampolee

[khwaibah]

Un forking believable..

[Chang_paarp]

If the banks are avoiding this like the plague, the rice mills will give it the same short shrift.

[Tatsujin]

More hot air and panic setting in.

The "Govt" can't make any pledges, promises, guarantees, suggestions or anything else etc whilst in "caretaker" mode. They should have thought of that before dissolving Parliament.

You reap what you sow . . . hopefully.

[KarenBravo]

You reap what you sow . . . hopefully.

No, actually.

That is the root problem here.

[Scamper]

Under no circumstance imaginable does the Yingluck administration have the authority to " guarantee " to compensate the mill owners. This is yet another of the game of chairs that Pheu Thai has come up with. But they all come down to one key fact - the administration has no money, and no authority to delegate it - now, or in the future.

[tingtongfarang]

which one of ptp had this brain fart.

[Chao Lao Beach]

Normally the rice millers only Give 50-60% anyway, so a pat on the back, pay you back later deal to the millers and we will keep this scam going.

[uty6543]

If I was a rice miller I would tell The ministry of commerce to "go fish"

[terry101]

So next to protest is going to be the rice mill association administration for not receiving their money from the government

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Edited February 7, 2014 by terry101

[Thai at Heart]

Of course, they may have stumbled on how to work this whole thing.

Sell the product to the mills for a value and registered volume. Take said receipt to the government and then receive your per kilo subsidy.....

Exactly as the rest of the world did it for decades.

Edited February 7, 2014 by Thai at Heart

[Thait Spot]

Hilarious

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[Old Man River]

Surprised they would consider it when the government has defaulted on the storage fees payable to the mills.

They have to consider it. It is a request from the government and some who are not financially constrained will agree. After all, these are the millers chosen for this scheme. The question is, if as a unit they refuse, how to say no.

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[Thaddeus]

Will the millers now be added to the list of people to blame if they say no?

[rogerdee123]

Tomorrow the Govt is probably going to ask the Vietnamese to pay the Thai farmers.

[Pib]

The govt asking the rice mills to pay the farmers and then once the govt pays the farmers then the farmers will pay the mills back. This has got to be an episode from the Twilight Zone I never saw....or maybe it's a new comedy show because I hear rice millers laughing to the point of tears.

I just figured out why this episode didn't air on the Twilight Zone--the show execs figured it was too unbelievable even for the Twilight Zone. But the late night comedians did use some of the show's script for jokes.

[rubl]

So, instead on lending money from banks, the not-so-caretaking government wants to lend from the Rice Millers? That's what is basicly asked here. Even more amazing is the suggestion

"The amount would then be paid back to them by the farmers after the BAAC first becomes able to pay the farmers in full."

If the government would propose / promise / formally declare / put Yingluck as collateral that the BAAC would pay back the Rice Millers the request might be taken under consideration. To just say, that the government will (eventually) get the BAAC enough money so the BAAC can pay farmers who then promptly pay the Rice Millers, seems somewhat hilarious.

Welcome to the imaginative transparency of the Yingluck Government

Edited February 7, 2014 by rubl

[hellyes2oo2]

So what happens if and when the farmers get paid by the BAAC, but instead of paying the rice millers back, they have to pay the loan sharks first. will the rice millers sue the farmers or the goverment. If they sue the goverment they will say it is all the fault of the farmers for taking the money from the rice millers.

[Briggsy]

Rice mill owners have built a reputation of being the stingiest, canniest, wiliest group of exploitative businessmen in Thailand. You can bet yo ass they are not going to do any favours for anyone without getting more back in return.

[monkeycountry]

I may be confused, but where would the rice mills have that kind of money from - even if they agreed in principle (which they won't)?

[Old Man River]

Rice mill owners have built a reputation of being the stingiest, canniest, wiliest group of exploitative businessmen in Thailand. You can bet yo ass they are not going to do any favours for anyone without getting more back in return.

I agree, but how do they say no? They can't say they are all broke and they can't say they politically disagree. I guess they can propose terms that nobody would accept. This is going to be interesting.

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[Bluespunk]

"The government will seek approval from the Election Commission to allocate 1.2 billion baht from the central budget to provide interest payments to the rice mills and farmers"

Setting someone up to blame when this latest hare brained scheme inevitably fails.

[Crushdepth]

I'm just waiting for a rice scheme exit tax to be introduced on foreigners at the airport.

[allan michaud]

Under no circumstance imaginable does the Yingluck administration have the authority to " guarantee " to compensate the mill owners. This is yet another of the game of chairs that Pheu Thai has come up with. But they all come down to one key fact - the administration has no money, and no authority to delegate it - now, or in the future.

Yes and No. The govt of Thailand made a deal with the farmers and agreed to pay them, at some point either this PTP govt or the next administration WILL have to pay up. They have no choice or they are breaking the law, very simple.

However this latest desperate suggestion is just hilarious. Absolutely no way the millers are going to go for this, unless they are insane. Apart from anything else this calls for the farmers to pay the millers back and I think an awful lot of farmers are going to struggle to do that with so many already turning to loan sharks.

[dcutman]

Ok, so Mr farmer is holding a receipt for 100,000 thb pledged rice. The rice miller loans him half of that receipt, 50,000 thb.

By some miracle the gov. finds the money to to fund the BACC to pay Mr. Farmer his 100,000 thb. So now Mr Farmer has to return 50,000 thb to the rice mill?

Did not Mr. Farmer just loose 50,000 thb?

It would seem to work better for MR. Farmer If the BACC would pay MR. Farmer 50,000 thb and the rice mill 50,000 thb plus interest, of course.

Edited February 7, 2014 by dcutman

[Bluespunk]

Doesn't PT owe the millers money as well or is that someone else?