Rice-pledging scheme: Commerce sets 3-prong plan to pay Thai farmers

[webfact]

RICE-PLEDGING SCHEME
Commerce sets 3-prong plan to pay farmers
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- THE COMMERCE MINISTRY yesterday launched a plan to raise funds to pay growers under the rice-subsidy project after the recent fiasco over lending by a state-run bank.

The Government Savings Bank suffered large withdrawals over consecutive days after it granted a loan last week to the Bank for Agriculture and Agricultural Cooperatives (BAAC). Customers wanted to show their opposition to GSB's alleged support for the controversial rice-pledging programme.

Caretaker Deputy Commerce Minister Yanyong Phuangrach said yesterday that a group of pro-government farmers, rice millers and the ministry would cooperate to encourage rice traders and others who wanted to help farmers withdraw their money from other banks to deposit at the BAAC. Once that happened, the BAAC should have sufficient revolving funds to assist the farmers who have not been paid for their pledged rice.

However, Yanyong did not provide a clear opinion on whether this idea would be workable.

Moreover, he said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

Liquidity for farmers

For the long term, Yanyong said the ministry would establish a "Thai Rice Farmers Bank" to manage farmers' money and ensure that they have their own financial institution and more liquidity.

He said the BAAC should have a method to transfer money from deposit accounts to pay farmers under the rice-pledging scheme to relieve their suffering.

He added that he had withdrawn his own money from two commercial banks and deposited it in the BAAC to join the effort to help the farmers.

Asked about the practicality of his measures and their possible effect on the banking sector, he said there should not be any legal prohibition preventing people from helping farmers, as the BAAC should have authority to manage the money they deposit and pay the rice growers what they are owed.

However, according to the Bank of Thailand, payments to farmers under the pledging scheme should come from three sources: the national budget, the Finance Ministry's borrowing, and income from sales of rice from the state stockpiles.

Yanyong said the proposed Thai Rice Farmers Assistance Fund would depend on donations and tax revenue paid by rice traders, which amounted to several billion baht.

The fund should be able to serve needy farmers interest-free, he added.

Wichian Phuanglamchiak, president of the Thai Agriculturist Association, said some farmer groups understood that the caretaker government could not meet its obligations under the pledging project as its normal sources of funds had been cut off. The Commerce Ministry's proposals should increase the government's ability to pay the farmers very soon.

Meanwhile, a survey this week by the National Institute of Development Institution found that 47.81 per cent of respondents did not believe the government could come up with all of the Bt130 billion it owes farmers before the end of this month.

About 16.76 per cent believed that the government could pay the farmers less than half that amount, while 16.23 per cent believed it could pay in full.


-- The Nation 2014-02-20

[looping]

Yawn

Sent from my iPad using Thaivisa Connect Thailand mobile app

[PaullyW]

Caretaker Deputy Commerce Minister Yanyong Phuangrach said yesterday that a group of pro-government farmers, rice millers and the ministry would cooperate to encourage rice traders and others who wanted to help farmers withdraw their money from other banks to deposit at the BAAC. Once that happened, the BAAC should have sufficient revolving funds to assist the farmers who have not been paid for their pledged rice.

So, the bank did not have sufficient cash to pay. Seems the TV commentators were correct yet again. Thai drama is so so easy to predict.

[Robby nz]

Caretaker Deputy Commerce Minister Yanyong Phuangrach said yesterday that a group of pro-government farmers, rice millers and the ministry would cooperate to encourage rice traders and others who wanted to help farmers withdraw their money from other banks to deposit at the BAAC. Once that happened, the BAAC should have sufficient revolving funds to assist the farmers who have not been paid for their pledged rice.

That would mean they plan to use depositors money to pay the farmers, money that comes from outside the scheme. Little difference from using money from depositors at the GSB.

Moreover, he said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

So farmers should donate to themselves to make up for the Govts shortcomings in failing to pay them.

For the long term, Yanyong said the ministry would establish a "Thai Rice Farmers Bank" to manage farmers' money and ensure that they have their own financial institution and more liquidity.

He said the BAAC should have a method to transfer money from deposit accounts to pay farmers under the rice-pledging scheme to relieve their suffering.

Always thought that the BAAC was the supposed to be the farmers bank.

Once again asking depositors to pay the Govts bills.

The whole thing is a clear admission that the Govt does not have and can not get money to pay the farmers what it has owed them for several months.

Yet they still seem to have money to buy more tablets.

[ratcatcher]

I'm alright Somchai, how are you doing?

Edited February 19, 2014 by ratcatcher

[NongKhaiKid]

The government can draw up plans with as many prongs as they want but it all depends on one vital ingredient that is is so glaringly missing, MONEY !

[Somtamnication]

Let's see. One prong to the left, one prong to the right and one prong up the a$$.

[ramrod711]

Moreover, he said the ministry would set up a "Thai Rice Farmers Assistance Fund".

Just a bit late, already been done.....by Suthep and PDRC before Chalerm sent the police out to disrupt th collections.

[thesetat2013]

Along with the chargea that will br heard next week for Yl and friebds there should be a freeze on assetts from them all until it is determined how much money and rice diaappeared then take the money recieved by corruption and use that to pay the farmers. I dont think i would trust the money donated to really go to the farmers anyway.

Before a real electio this money may be used to pay farmers for political favor. Also i dont think many would donate this way. It would be better to make a adopt a farmer program to help them.

Startng with the most needy farmers with families.

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

[spirit47]

Every week the same, new plans, new hubs...Hubba hub...

[tim armstrong]

There is still little focus in the media on what the government has done with half of the original pledging budget that has gone missing, or what has become of monies from previous government sales of rice. Perhaps Yingluck knows and doesn't want to be asked in a public forum ?

[telecom]

I have a cunning plan, let's seriously piss off the other banks by petitioning their customers to withdraw their fund and dumping them into a begging account to help farmers that they have failed to help themselves.

I can see the petitions flying into the courts already By tomorrow this plan will be dead and buried.

Where do they get these idiots from?

[Scamper]

The administration continues to operate under the impression that they have legislative power. They also continue to operate under the impression that their long-held views on any of the insolvent practices of the past don't need to change. They see no reason for the banks to not contribute to the scheme. And yet the bank's customers have other thoughts. And if their capital goes, the banks go. The banks aren't taking that path, naturally, in a reflex of self-preservation. The administration - on the other hand - has no such luxury. They have hit the end of the road.

[Nickymaster]

Moreover, he (yangyong) said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

Disgusting idea from PT. They filled their own pockets trough corruption and when there is no more money for the poor farmers they set up a fund so the taxpayers can spend some more of their hard earned cash.

Again, a sane person would simply ask: Why not sell some of the 20 BILLION Kg of rice they have in stock if you need money? I's a commodity, right? So it has a has a market value and can be converted into cash, right?

I REALLY don't understand why they don't sell rice. Somebody please help me understand!

[Valentine]

Why not set up a bank or fund to help all sectors of society in need which can provide effective micro financing thereby & hopefully cutting out the greedy loan sharks who often end up with cheap land. Why specifically a rice farmers bank &/or fund other than they are a huge chunk of support for PTP.

[Valentine]

Moreover, he (yangyong) said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

Disgusting idea from PT. They filled their own pockets trough corruption and when there is no more money for the poor farmers they set up a fund so the taxpayers can spend some more of their hard earned cash.

Again, a sane person would simply ask: Why not sell some of the 20 BILLION Kg of rice they have in stock if you need money? I's a commodity, right? So it has a has a market value and can be converted into cash, right?

I REALLY don't understand why they don't sell rice. Somebody please help me understand!

And why don't they explain what happened to those 100's of billions of Baht which were supposed to go to the farmers.

[rubl]

Moreover, he (yangyong) said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

Disgusting idea from PT. They filled their own pockets trough corruption and when there is no more money for the poor farmers they set up a fund so the taxpayers can spend some more of their hard earned cash.

Again, a sane person would simply ask: Why not sell some of the 20 BILLION Kg of rice they have in stock if you need money? I's a commodity, right? So it has a has a market value and can be converted into cash, right?

I REALLY don't understand why they don't sell rice. Somebody please help me understand!

Oh, but they're selling, or at least say they are. Unclear against what price and therefore unclear what possible extra loss becoming visible.

For a government which says it's doing all legally and transparently they seems to be a distinct lack of details.

[personchester]

Caretaker Deputy Commerce Minister Yanyong Phuangrach said yesterday that a group of pro-government farmers, rice millers and the ministry would cooperate to encourage rice traders and others who wanted to help farmers withdraw their money from other banks to deposit at the BAAC. Once that happened, the BAAC should have sufficient revolving funds to assist the farmers who have not been paid for their pledged rice.

So, the bank did not have sufficient cash to pay. Seems the TV commentators were correct yet again. Thai drama is so so easy to predict.

The story goes on, and on, about the banks not having sufficient money to pay the rice farmers, the state should take appropriate action in order to solve the financial problem of the farmers and reduce the street riots in BKK.

The current "caretaker" government and the opposing "democrats" should agree to do what was done in other top countries such as US, & UK, (in 2008 and after) when financial bank problems occurred, they printed many, many, billions of their currency stated as "QE" .. (quantitative easing) to give to the banks, and the banks were then able to carry on supplying the public with money,

which is important for any country.

Should appropriate "QE" take place in Thailand then the farmers will get paid, and the general public will have no bank worries to remove their deposits and the street protests in BKK will change accordingly.

[AleG]

Three pronged approach, let's see.

1- Panhandling

2- Ransacking BAAC depositor's money.

3- Creating a Rice Farmers Bank financed by...?

First one is pathetic coming from a government, second one, in the face of GBS run, is ill-advised (to put it very mildly) and the third one is just a pipe dream because if there's no money now, where is the money for this new bank going to come from?

[almafudd]

Any news on the court case - Farmers vs Government?

[rubl]

Dear farmers, you'll be paid, I caretaking Dept. Minister of Commerce promise you this.

[kbirkins]

RICE-PLEDGING SCHEME

Commerce sets 3-prong plan to pay farmers

PETCHANET PRATRUANGKRAI

THE NATION

BANGKOK: -- THE COMMERCE MINISTRY yesterday launched a plan to raise funds to pay growers under the rice-subsidy project after the recent fiasco over lending by a state-run bank.

The Government Savings Bank suffered large withdrawals over consecutive days after it granted a loan last week to the Bank for Agriculture and Agricultural Cooperatives (BAAC). Customers wanted to show their opposition to GSB's alleged support for the controversial rice-pledging programme.

Caretaker Deputy Commerce Minister Yanyong Phuangrach said yesterday that a group of pro-government farmers, rice millers and the ministry would cooperate to encourage rice traders and others who wanted to help farmers withdraw their money from other banks to deposit at the BAAC. Once that happened, the BAAC should have sufficient revolving funds to assist the farmers who have not been paid for their pledged rice.

However, Yanyong did not provide a clear opinion on whether this idea would be workable.

Moreover, he said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

Liquidity for farmers

For the long term, Yanyong said the ministry would establish a "Thai Rice Farmers Bank" to manage farmers' money and ensure that they have their own financial institution and more liquidity.

He said the BAAC should have a method to transfer money from deposit accounts to pay farmers under the rice-pledging scheme to relieve their suffering.

He added that he had withdrawn his own money from two commercial banks and deposited it in the BAAC to join the effort to help the farmers.

Asked about the practicality of his measures and their possible effect on the banking sector, he said there should not be any legal prohibition preventing people from helping farmers, as the BAAC should have authority to manage the money they deposit and pay the rice growers what they are owed.

However, according to the Bank of Thailand, payments to farmers under the pledging scheme should come from three sources: the national budget, the Finance Ministry's borrowing, and income from sales of rice from the state stockpiles.

Yanyong said the proposed Thai Rice Farmers Assistance Fund would depend on donations and tax revenue paid by rice traders, which amounted to several billion baht.

The fund should be able to serve needy farmers interest-free, he added.

Wichian Phuanglamchiak, president of the Thai Agriculturist Association, said some farmer groups understood that the caretaker government could not meet its obligations under the pledging project as its normal sources of funds had been cut off. The Commerce Ministry's proposals should increase the government's ability to pay the farmers very soon.

Meanwhile, a survey this week by the National Institute of Development Institution found that 47.81 per cent of respondents did not believe the government could come up with all of the Bt130 billion it owes farmers before the end of this month.

About 16.76 per cent believed that the government could pay the farmers less than half that amount, while 16.23 per cent believed it could pay in full.

-- The Nation 2014-02-20

The government can draw up plans with as many prongs as they want but it all depends on one vital ingredient that is is so glaringly missing, MONEY !

Along with the chargea that will br heard next week for Yl and friebds there should be a freeze on assetts from them all until it is determined how much money and rice diaappeared then take the money recieved by corruption and use that to pay the farmers. I dont think i would trust the money donated to really go to the farmers anyway.

Before a real electio this money may be used to pay farmers for political favor. Also i dont think many would donate this way. It would be better to make a adopt a farmer program to help them.

Startng with the most needy farmers with families.

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

Sent from my Nexus 5 using Thaivisa Connect Thailand mobile app

[realenglish1]

It is not Suthip that will bring down the Thaksin Regime. Since Suthip has no real reason to do so other than "His own agenda. It is the rice farmers that will.

From the outset I was critical of the rice scheme. I scratched my head in wonderment as to how a government can get involved in business and expect it to be successful.

By in large in the west it is common knowledge that governments stay out of business and let business run themselves. We from the west know too well it does not work.

So what made this government think they can do it better.

[BuddyPinkham]

he said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

So now they are looking for people to donate to a fund to pay off what the government owes. I smell something rotten in Denmark (Thailand). Probably another scam so the PTP can get the money before they get out of town!

[Huk]

Caretaker Deputy Commerce Minister Yanyong Phuangrach said yesterday that a group of pro-government farmers, rice millers and the ministry would cooperate to encourage rice traders and others who wanted to help farmers withdraw their money from other banks to deposit at the BAAC. Once that happened, the BAAC should have sufficient revolving funds to assist the farmers who have not been paid for their pledged rice.

So, the bank did not have sufficient cash to pay. Seems the TV commentators were correct yet again. Thai drama is so so easy to predict.

The story goes on, and on, about the banks not having sufficient money to pay the rice farmers, the state should take appropriate action in order to solve the financial problem of the farmers and reduce the street riots in BKK.

The current "caretaker" government and the opposing "democrats" should agree to do what was done in other top countries such as US, & UK, (in 2008 and after) when financial bank problems occurred, they printed many, many, billions of their currency stated as "QE" .. (quantitative easing) to give to the banks, and the banks were then able to carry on supplying the public with money,

which is important for any country.

Should appropriate "QE" take place in Thailand then the farmers will get paid, and the general public will have no bank worries to remove their deposits and the street protests in BKK will change accordingly.

QE ... Nice idea but for one small detail - it requires a government to authorise the generation of those funds, something not within the power of the caretakers. While the original default (pre-November) were simply down to incompetence and maintenance of the trough to allow further rip-off's, the current situation is entirely due to not having an empowered government pending elections.

Had the government not been in caretaker mode then the funds could have been obtained through 'normal' channels. Robbing from one project to pay another is relatively easy in a non-transparent government and the farmers payments would have happened from funds 'borrowed' from elsewhere.

In my opinion the rorting of the system and blatant corruption is a separate issue to the funds sourcing. One is simply criminal, the other is criminal negligence and incompetence.

[tim armstrong]

Moreover, he (yangyong) said the ministry would set up a "Thai Rice Farmers Assistance Fund". Those who wanted to help the farmers could donate money to the fund at BAAC account number 020033119718. This measure was designed to assist the farmers in the short term.

Disgusting idea from PT. They filled their own pockets trough corruption and when there is no more money for the poor farmers they set up a fund so the taxpayers can spend some more of their hard earned cash.

Again, a sane person would simply ask: Why not sell some of the 20 BILLION Kg of rice they have in stock if you need money? I's a commodity, right? So it has a has a market value and can be converted into cash, right?

I REALLY don't understand why they don't sell rice. Somebody please help me understand!

The only rice that is in demand is Jasmine rice - which sells for a higher price, but is less in quantity. But the price the government wants is too high, because they set it that way two years ago. Now they have a stockpile because international buyers know the price has to come down before the stock starts to deteriorate. The second grade rice is also way too expensive and not competitive with Vietnam, India and other players. Whatever the government does now it will have to sell or dump rice at a huge loss in order to pay the promised price to farmers.

They will eventually sell some at a bargain price, but my prediction:- If they dump or burn even 1kg, the normally peaceful farmers will react violently and oust the government.