Thai rice woes rebound on crisis-hit government

[webfact]

Thai rice woes rebound on crisis-hit government
by Aidan JONES

BANGKOK, February 12, 2014 (AFP) - Angry farmers, a rice mountain and a slew of corruption allegations -- a flagship policy that helped propel Thailand's premier to power now threatens to boomerang on her embattled government.

Prime Minister Yingluck Shinawatra is struggling to steer the Southeast Asian nation through a policy vacuum created by a chaotic general election earlier this month.

A controversial rice subsidy scheme, which paid farmers up to 50 percent above market rates, helped her sweep to power in 2011 but now appears to be unravelling.

Critics say the programme has incubated massive corruption, drained the public finances, dislodged the kingdom as the world's top rice exporter and created an estimated 18 million-tonne stockpile of the grain.

Hundreds of farmers have protested recently in Bangkok to demand payment after the government ran short of cash to buy their pledged crops late last year, adding to pressure on Yingluck, who has faced months of opposition rallies.

The cabinet earmarked nearly $22 million Tuesday for about 3,900 farmers but, in a sign of the policy constraints it faces, the payments must be approved by the Election Commission.

An estimated one million farmers nationwide are owed money, according to the Thailand Development Research Institute, which says the government may need to find $3.6 billion to catch up with payments.

Thailand sought to recoup the money paid to farmers by hoarding rice to drive up prices on world markets, but it was unable to find buyers after rival producers such as India and Vietnam unexpectedly boosted their shipments.

The Thai Rice Exporters Association forecasts the kingdom will sell 7.5 million tonnes overseas this year, down more than 30 percent compared with 2011.

"The whole Thai rice industry fell apart and the reputation it had enjoyed in the world market as a reliable supplier of good quality rice is gone," said TDRI's Ammar Siamwalla.

Cooking the books?
The government has not revealed the exact annual cost of the scheme, but the TDRI says estimates range from $4.6 billion to $6 billion -- roughly six-eight percent of the annual budget.

The ruling Puea Thai party denies the government has run out of money and has defended the scheme as an effort to lift rural Thais out of poverty.

Yingluck blames opposition demonstrators -- who disrupted the February 2 election -- for leaving her caretaker administration with limited power to raise funds.

Until voting is held in dozens of protest-hit constituencies, there are not enough MPs to appoint a new government even if Yingluck's party wins.

"We are trying to solve the problem as best we can... but the banks will not approve loans," Yingluck told reporters on Tuesday.

"The government's financial and monetary status is good."
A deal to sell one million tonnes of stockpiled grain to a Chinese state firm recently collapsed after a Thai anti-corruption panel announced graft charges against several government officials linked to the scheme.

The National Anti-Corruption Commission (NACC) has launched a probe into possible negligence of duty by Yingluck in connection with the flagship policy -- a move that could potentially result in her impeachment.

Opposition politician Warong Dechgitvigrom, who submitted the graft complaint to the NACC, alleges that the scheme lured many mills to increase their inventory with sub-standard grain from Cambodia and Myanmar.

Warong said he had evidence that fabricated deals -- purportedly to sell rice to overseas governments -- enabled local shell companies to buy rice at bargain prices from the scheme to re-sell on the domestic market at the expense of taxpayers.

"Every process within the rice scheme has been corrupt," he told AFP.
"The farmers are poor... exports have collapsed and the quality of Thai rice is bad," added Warong. "I think this is near the end for Yingluck."

Coming to boil
Voters in the northeastern region of Isaan, home to a third of the population, have helped bring three successive governments backed by Yingluck's billionaire family to office -- the first in 2001 led by her elder brother Thaksin.

Failure to pay farmers could erode that "traditionally arch-loyal rural base", said Paul Chambers, director of research at the Institute of South East Asian Affairs at Chiang Mai University in northern Thailand.

But the impact on the government's popularity remains unclear.

In the northeastern province of Udon Thani, farmer Mali Khampimaan blamed the opposition demonstrators for the $750 she is owed for rice delivered in November.

"The banks won't pay because of the protests," said Mali. "But we still need the money."


-- (c) Copyright AFP 2014-02-12

[rogerdee123]

Finally the international media is starting to get a clue .....

[seajae]

blames the protesters because that is all the reds allow them to hear or know. Once the truth is out they will turn on the reds/ptp that fast it isnt funny, this is the result of the communistic ways of the reds in their own teritory, keep lying to the farmers, dont let them find out the truth and threaten any who stand up against you. Finally the world is seeing the truth about Thailand, the govt is corrupt and it will spread through the country and the reds will not be able to lie their way out of it. lets hope the farmers treat the reds appropriately.

[djjamie]

blames the protesters because that is all the reds allow them to hear or know. Once the truth is out they will turn on the reds/ptp that fast it isnt funny, this is the result of the communistic ways of the reds in their own teritory, keep lying to the farmers, dont let them find out the truth and threaten any who stand up against you. Finally the world is seeing the truth about Thailand, the govt is corrupt and it will spread through the country and the reds will not be able to lie their way out of it. lets hope the farmers treat the reds appropriately.

Exactly. I have to thank kikoman for inadvertantly highlighting this for me. Khun Korn was in the provinces helping the farmers plight and kikoman smugly mentioned that Korn must be undercover because no Red Shirt leaders mentioned this and no farmers knew about it! Why? They don't want the opposition to be seen in a truthful or at the very least a favorable light. As you state the truth is spreading and the farmers are slowly becoming aware.

The post is below between Kikoman and I

Again I say thank you kikoman for highlighting this blatant brainwashing that is going on in the villages.

CHEERS!

http://www.thaivisa.com/forum/topic/703587-abhisit-sets-conditions-for-contesting-election/?p=7422810

[Brevity]

I guess eventually the dust will settle on this fiasco, and those responsible will suffer no punishment for the corruption and blatant mismanagement of taxpayer's money, so nothing will be learned and no changes to prevent a similar disaster will be established. Thailand and its people will continue to wallow in the mud of their own ignorance and apathy.

[mijan24]

I guess eventually the dust will settle on this fiasco, and those responsible will suffer no punishment for the corruption and blatant mismanagement of taxpayer's money, so nothing will be learned and no changes to prevent a similar disaster will be established. Thailand and its people will continue to wallow in the mud of their own ignorance and apathy.

A simple post but so true -

I guess eventually the dust will settle on this fiasco, and those responsible will suffer no punishment for the corruption and blatant mismanagement of taxpayer's money, so nothing will be learned and no changes to prevent a similar disaster will be established.

You only have to look at the Philippines history to see the parrallels - peoples power has achieved squat because they the populace did not or do not want to learn that they the "Filipinos" were corrupt and had been duped for many years by many of the so called Fillipino elite. PNG the same only they call the baddies - Rascals - how quaint.

[dru2]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

[HOOD Robin]

I guess eventually the dust will settle on this fiasco, and those responsible will suffer no punishment for the corruption and blatant mismanagement of taxpayer's money, so nothing will be learned and no changes to prevent a similar disaster will be established. Thailand and its people will continue to wallow in the mud of their own ignorance and apathy.

Maybe it will change after the brave ones have sent out an assassination team to Dubai.........

[chainarong]

Thailand No longer has the high reputation it formally had for Rice exports and only one set of greedy spiffs , at the expense of the rice farmers , is to blame, never do you take for granted your reputation, you always strive to better, to improve the brand, not go and abuse the name and think that International customers will bow and scrape at your demand, the PTP's lack of judgement, fails to grasp the seriousness of this mishandling , as the International trading community will remember Thailand and for all the wrong reasons.

[chainarong]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

Not true, not yet

[Scamper]

From any standpoint, the Yingluck administration will not be able to bear the enormous weight of this scandal. It's just seeping all over the place. It is so corrupt that Pheu Thai ought not to place their concerns over the survival of this administration - it is finished under any scenario. They ought instead to be concerned about the legal consequences - which will bring possible prison sentences to many politicians, as well as create a debt burden on the country that will be felt for years to come. It is not known at this point if the rice industry will ever recover. There are massive stock piles of idle rice that may not be able to be unloaded for over five years. Beyond that, occupying the proud top tier of the global exporting industry may very well be a thing of the past. Who thought that any government could inflict so much damage to itself in just two and a half years ?

[scorecard]

blames the protesters because that is all the reds allow them to hear or know. Once the truth is out they will turn on the reds/ptp that fast it isnt funny, this is the result of the communistic ways of the reds in their own teritory, keep lying to the farmers, dont let them find out the truth and threaten any who stand up against you. Finally the world is seeing the truth about Thailand, the govt is corrupt and it will spread through the country and the reds will not be able to lie their way out of it. lets hope the farmers treat the reds appropriately.

'Communist ways' is an interesting term. Thida and weng have long term history in the old Thai communism party, now supposedly champions of democracy, but also basically self elected leaders / spokespersons for the red / udd cause.

Both continue to stand by pt regardless of the recent revelations and seemingly regardless of the tragic and disgraceful non payments to the farmers.

Strange.

On a different angle, I wonder how Thida would respond to the questions: 'Are reforms needed / what reforms are needed?'

Edited February 12, 2014 by scorecard

[scorecard]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

Interesting.

I wonder who 'the establishment' is?

[dru2]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

Interesting.

I wonder who 'the establishment' is?

I'm sure you know as well as I do.

[monkeycountry]

In other news today it has been reported that thousands of tonnes of rice is being shipped out of warehouses in Nakhon Si Thammarat. The letter to approve the releases has been issued by the Commerce Ministry's department of foreign trade. Many of the trucks used to ship the rice bear the name "Nattawut Transport".

According to the article, noone at the warehouses or from the local authorities know where the rice is heading.

Oh by the way, the Commerce Minister's name is ..... Mr. Nattawut Saikuar

[Siripon]

In other news today it has been reported that thousands of tonnes of rice is being shipped out of warehouses in Nakhon Si Thammarat. The letter to approve the releases has been issued by the Commerce Ministry's department of foreign trade. Many of the trucks used to ship the rice bear the name "Nattawut Transport".

According to the article, noone at the warehouses or from the local authorities know where the rice is heading.

Oh by the way, the Commerce Minister's name is ..... Mr. Nattawut Saikuar

Nattawut comes from Nakhon Sri Thammarat.

[anon467367354]

So it's the protestors fault they the government can't raise the money, nor borrow it.

Why would they have to do that? Where's the money?

Seems like a pure admission of guilt to me.

[ramrod711]

Critics say the programme has incubated massive corruption, drained the public finances, dislodged the kingdom as the world's top rice exporter and created an estimated 18 million-tonne stockpile of the grain.

Pretty much covers it. Most of us have recognized this for some time, some other posters never will.

[Baerboxer]

In other news today it has been reported that thousands of tonnes of rice is being shipped out of warehouses in Nakhon Si Thammarat. The letter to approve the releases has been issued by the Commerce Ministry's department of foreign trade. Many of the trucks used to ship the rice bear the name "Nattawut Transport".

According to the article, noone at the warehouses or from the local authorities know where the rice is heading.

Oh by the way, the Commerce Minister's name is ..... Mr. Nattawut Saikuar

Nattawut comes from Nakhon Sri Thammarat.

Surely no one could be that dumb or arrogant could they........................, seriously.......................... must be just a coincidence

[davehowden]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

Interesting.

I wonder who 'the establishment' is?

I thnk you have it in ONE.

Edited February 12, 2014 by davehowden

[bigbamboo]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

I guess if the shares in Samsonite start to go through the roof then we'll know for sure.

[allan michaud]

"Thailand sought to recoup the money paid to farmers by hoarding rice to drive up prices on world markets, but it was unable to find buyers after rival producers such as India and Vietnam unexpectedly boosted their shipments."

SHOULD THAT NOT READ

"...but it was unable to find buyers after rival producers such as India and Vietnam refused to go along with Thaskin's plan for major rice producing nations to hoard rice to drive up international prices." Additionally Thailand ignored the international reaction to the aftermath of the food crisis in 2008, where major grain producing nations decided to increase stockpiles to cope with future global shortages."

IN SHORT IT WAS BLEEDING OBVIOUS TO EVEN A 5TH GRADER THAT THIS SCHEME WOULD HEMORRHAGE MONEY... EVEN WITHOUT THE CORRUPTION.

[rubl]

Thai rice scam article woes rebound on coup plotters and dysfunctional media

After 2 months of daily propaganda 99% of people in the country see this as a last desperate flag to rally round and get the courts to deal with.

meanwhile an armed militia 40 strong is allowed to roam the streets, protecting ballot papers from voters.

Don't worry, young master pips. The government has all in hand, CMPO head Chalerm has formally cursed a few and the Emergency Decree is obviously absolutely justified because of these enormous numbers of militants.

Interestingly lots of people here on this forum are wondering about the rather pathetic attempts by some to discredit anyone or thing anti-government. Must be a last desperate move before the rice hits the fan.

[rubl]

In other news today it has been reported that thousands of tonnes of rice is being shipped out of warehouses in Nakhon Si Thammarat. The letter to approve the releases has been issued by the Commerce Ministry's department of foreign trade. Many of the trucks used to ship the rice bear the name "Nattawut Transport".

According to the article, noone at the warehouses or from the local authorities know where the rice is heading.

Oh by the way, the Commerce Minister's name is ..... Mr. Nattawut Saikuar

Nattawut comes from Nakhon Sri Thammarat.

Maybe 'i of the community', young pips and others are right. All troublemakers come from down South

[Thait Spot]

Thaksinomics

Buy high

Sell low

Cream off both transactions

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[Jonmarleesco]

'... Thailand sought to recoup the money paid to farmers by hoarding rice to drive up prices on world markets, but it was unable to find buyers after rival producers such as India and Vietnam unexpectedly boosted their shipments ...' No it didn't. The Thai government has been hoarding rice, in the vain hope that prices would rise, from the start of the scheme, having built subsidy payments into its budget calculations and borrowed along the way. The caretaker government has only now decided it needs to get serious about flogging the rice in order to cover its collective arse. Too little, too late.

As for the cost estimates: unless the TDRT, or Aidan Jones, is referring to the net losses - still low - then the figures don't range between $4.6bn and $6bn, but between some $14bn and $20bn.

[SICHONSTEVE]

In other news today it has been reported that thousands of tonnes of rice is being shipped out of warehouses in Nakhon Si Thammarat. The letter to approve the releases has been issued by the Commerce Ministry's department of foreign trade. Many of the trucks used to ship the rice bear the name "Nattawut Transport".

According to the article, noone at the warehouses or from the local authorities know where the rice is heading.

Oh by the way, the Commerce Minister's name is ..... Mr. Nattawut Saikuar

Nattawut comes from Nakhon Sri Thammarat.

Yes indeed, I'm afraid he comes from Sichon much to my embarrassment - he is absolutely despised here. What's more,.Jatuporn comes from Surat Thani as well (in Suthep's kingdom) - these are both Democrat strongholds!!

[tilac2]

Interestingly, I was reading this thread when a senior member of the foreign press corps in Bangkok called me - 10 minutes ago. He reaffirmed when Shawn Crispin wrote in Asia Times a couple of weeks back - that the Shin Clan, or at least senior leadership, will have to leave not just politics, but Thailand; however they can keep their assets. It has reportedly been agreed between the establishment and the Shins.

I do not know if this is true and I have no substantive evidence except information from two usually impeccable sources. I merely report. We can wait and see...

I think you're talking nonsense. I'd guess that you are promoting this unattributed stuff because that's what you would LIKE to happen. You and most of the other farang elite in Bangkok are solidly anti-Thaksin.

For the information of TV members, Asia Times is owned by Sondhi Limthongkul, head of the PAD mob who invaded the airport some years back. Why would we believe Shawn Crispin who works for that rag any more than we'd believe the right-wing fanatic, Jeffrey Race, elitist and member of the rich-man's Royal Bangkok Sports Club who works for the same right-wing rag? Race was trying to convince us a couple of weeks back in 'The Nation' that Thailand should stick with the safe conservative politicians of the past ('the Middle Way' as Race calls his brand of laissez-faire) and that Thaksin is the Devil incarnate. Translation: screw the working people and keep Thailand as one of the most unequal countries in SE Asia and a happy home for corrupt right-wing politicians and rich foreigners.

[JRSoul]

I think you're talking nonsense. I'd guess that you are promoting this unattributed stuff because that's what you would LIKE to happen. You and most of the other farang elite in Bangkok are solidly anti-Thaksin.

"You and most of the other farang elite in Bangkok are solidly anti-Thaksin."

Is refusing to overlook a few minor character flaws like mass murder and wholesale theft such a bad thing?

[MAJIC]

When a Bank will not give you a loan, it means only one thing: you are a bad risk!