Thai Govt eyes income from 1m-tonne G2G China rice sale

[webfact]

G2G
Govt eyes income from 1m-tonne G2G China rice sale
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The caretaker government has high hopes of bringing in some funding from the sale of 1 million tonnes of rice from the state stockpile via a government-to-government deal to pay what it owes farmers under the pledging programme.

The rice sale would help speed up payments to farmers, as only one bidder showed up yesterday when the Finance Ministry opened the bidding for its Bt20 billion promissory notes (PN).

An industry source said the Chinese government could sign an agreement for the deal in the next few weeks depending on the Thai government's readiness.

The source said the G2G deal must be done with China's state-owned enterprise COFCO as the Thai government's counterpart. However, the deal should not be finalised in short.

"Still, the government is yet to seek the Election Commission’s approval for the deal, as this is considered an obligation of the new government," said Surasak Riangkrul, director general of Department of Foreign Trade.

Meanwhile, the Bank for Agriculture and Agricultural Cooperatives (BAAC) on Thursday agreed to set up "Farmer Assistance Funds" for temporary relief to the unpaid farmers. There will be three funds: one from donations, one interest-free, and a third that is expected to provide a return on investment, for which the BAAC will pay interest of 0.63 per cent per annum.

BAAC president Luck Wajananawat said the bank projected receiving about Bt20 billion in donations and investments from those wanting to help the unpaid farmers.

The funds will be open for donations and investment from March 10 to June 30, while payments should be able to reach farmers from March 10 until the end of the year. The BAAC will manage the funds transparently and should get some return for investors from rice sales or loans by the end of the year, Luck said.

Minimum investment to each fund (except donations, for which there is no minimum) is set at Bt1,000.

The BAAC will allocate initial investment capital worth Bt100 million from its own resources, from which it expects to earn no interest. The bank will also allocate Bt10 million from its central budget to advertise the project.

A group of farmers yesterday gathered in front of the United Nations building on Rajdamnoen Avenue, while waiting to submit a petition to HM the King asking for the royal assistance.

The payment could be further delayed as the Public Debt Management Office yesterday had a difficulty in finding the buyers of the eight-month PN.

Several state enterprises were reluctant to join the bidding, fearing that it could violate a constitutional clause that a caretaker government should not embark on recurring debt. It was not disclosed which who was the only bidder for the financial paper.

-- The Nation 2014-02-28

[Robby nz]

Terrible lot of iff's and but's in that lot, and the farmers might get paid my the end of the year, that'll make them happy.

[edwinchester]

I thought the farmers had been promised their delayed payments would finally be handed out this week?

[kikoman]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

[patjem]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

There should have been no 'if', it was because your heroes in the caretaker government f###ed it all up in the first place.

[dcutman]

How long does a "not fake" g2g deal with China take to put together?

[RockyBeerbelly]

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The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

Kikoman, you have failed to answer the question I asked you in a post yesterday: do you dare to come out and openly say on TV that you think the rice scheme is a succesful, corruption free program that helps the farmers as well as the country? Look forward to your answer.....

Oh ya, and btw, dont you think the govt could have sold the rice before the farmers felt screwed by Yingluck?

Edited February 28, 2014 by RockyBeerbelly

[Thaddeus]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

100% correct, we all know who caused the farmers to suffer for political gain, PTP did.

Edited February 28, 2014 by Thaddeus

[ramrod711]

It would be nice to have a sale in place so that the next PM can pay the farmers, instead of simply lying to them.

[Thait Spot]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

It must be funny to go through life understanding 50% of what is going on around you.

What is stopping the caretaker government taking out the loan? The knowledge that they will be breaking the law.

The EC has not said "no" to the loan - it has pointed out the law to the caretaker government.

So who is the cause of this? The government for not thinking things through before dissolving the house and the government for not paying the farmers.

[shirtless]

I thought that the Chinese stated a few weeks ago they would not be buying Thai Rice, Is this just another stalling tactic.?Thailand needs to start selling its rice stockpiles before they become , either rotten or contaminated with fumigants.

[Luk Mhee]

The big problem of this rice marketing scheme according to an article that I read in the media is as follows;

Corrupt rice-pledging officials have sapped 60 billion baht of government cash to Hong Kong through an illegal money exchange network in Yaowarat, a rice miller has claimed.
A banker claimed that corrupt officials used a system known as “Phoi Khwan” to channel cash and cheques through a negotiator in Yaowarat in exchange for money orders that could be redeemed in Hong Kong.

[Robroona]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

What kicks do you get from being the resident Red Troll? Every post you ever make is returned with derision and sarcasm. You never get embarrassed?

[Scamper]

The Yingluck administration is still under the illusion it has a parliamentary quorum. It's pretty sad that something as basic as that keeps leaving their consciousness.

[The Deerhunter]

Perhaps you can tell a fake Chinese rice buyer by his shoes. Can we see a photo of the single buyer who has not got permission to buy the rice because it has to be bought by someone else, (COFCO) under a G2G scheme when they already said they have quality issues with Thai rice, etc etc, etc. That G2G acronym sounds impressive for the un-educated/ un-sophisticated. Sounds a bit like G8 or something else really important A pity it just means Government to Government. Nothing more!

The Bangkok-bound tractor farmers returned to the north because their spokesman had a promise that they would be paid this week. This, I recall was modified (when they were all turned round & on their way home) to "will start to be paid this (current) week. " So what constitutes starting to pay? I reckon it means that a meaningful percentage, say 20% got their mney by today. Or, better, everybody got 15-20% by today and the rest over the next 10 months....... MAYBE!!!! . I DON'T reckon it means the BAAC setting up a fund in the hope of getting some of it in 2.5 weeks after the promise was made. Neither does it cover people whinging about whether the CT govt can or cannot raise a loan when they should have paid the money 5 months ago or arranged funding before dissolving parfliament. Talk about understanding one's responsibilities & planning to fulfilthem.

Let's just hope this mystery buyer was not the cleaner just scratching his ear, or someone pouncing around in a hat, glasses & a false moustache.

[Bocking]

It's already ''Next Week'' and it seems the farmers havn't been paid, so is Chada leading his Farmers back to Bangkok?

....... Or did at least one of the farmers get paid?

Only 1 bidder showed up for the PN auction? .. I suspect this time it wasn't Potjama

[The Deerhunter]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

Sorry, mate. But there is a strong suspicion in many quarters, (obviously not yours) that the other Ammart have already nicked the money or bungled the whole deal so badly that there is no money

Cheers!

[Crushdepth]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

You're omitting a few interesting facts here: The government has already asked practically everyone for a loan. Some institutions did in fact offer to lend at the bids a few weeks ago, but the government didn't like the rates and refused them. That's right, the government has turned down loans.

The EC has also given the government an answer on taking out a loan, which was that the government has to decide if this is an appropriate thing for a caretaker government to do and the government will have to take responsibility for its actions. A quick look at the constitution shows that it is not ok to bury an incoming government in debt (remember that Plan A was to raise money by selling rice).

It's also interesting that the government of Iraq has just announced that they will not buy any more Thai rice until the quality improves. They were the number two buyer, how's that for a G2G deal?

I can't see why they would need EC permission to sell rice. Just trying to line up them as the bad guy when this imaginary deal evaporates IMHO.

Edited February 28, 2014 by Crushdepth

[uty6543]

Any bets on that in a few days time the deal will fall through and the blame will be put on Suthep.

[Tatsujin]

They're making deals (even though only one bidder turned up) and STILL haven't gotten approval from the EC for doing so. Morons.

[SoilSpoil]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

The farmers should have been paid in October 2013 and not after the 'rich ammart' rice and rubber farmers of the South and Central planes are in Bangkok to protest against a corrupt regime!

Edited February 28, 2014 by SoilSpoil

[Tatsujin]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

Well, you can blame everyone else for the farmers not getting paid, I'll continue to blame the sponsors of the program who couldn't pay them on time in the first place (last year) and screwed themselves when THEY chose to dissolve parliament prior to arranging any deals.

[djjamie]

The Farmers could get paid if the "Ammart"(Rich Elite Establishment) quit their selfish opposition to the government getting a loan, but it will be interesting when a loan is presented to the EC and they reject it all will know who is causing the farmers suffering for political gain!

Cheers!

13th of September 2013 - The cabinet approved a total budget of 270 billion baht for the government’s rice pledging scheme, Deputy Commerce Minister Yanyong Puangraj. They said they had the money. They lied.

16th of September - THE FINANCE MINISTRY’s sub-committee assessing the cost of the rice pledging scheme fears the scheme will break budget. The PTP were warned.

8th of October - The World Bank said that the rice pledging scheme had proven to be the most costly and would ring up a bill of 115 billion to 150 billion baht per harvest. The reply - Deputy Prime Minister and Commerce Minister Niwatthamrong Bunsongphaisan today categorically dismissed the World Bank’s estimate that the Thai government will incur up to 400 billion baht in losses from the rice pledging scheme for two harvests. He went on to say the Finance Ministry should help secure more funding to meet the 270 billion baht target already approved by the cabinet to be used for the 2013-14 harvests. They said they had the money. They lied.

12th November 2013 - IMF called on Thailand to ditch rice support scheme. The PTP said no. The PTP were warned.

9th of Decmeber 2013 - House dissolved.

​You can see fault with the EC for following the rule of law and the banks because they do not want to solicit loans because of legality concerns and they don't want to undermine the confidence of their investors yet you cannot see fault with the PTP after they were warned 3 times in the 3 months leading up to dissolution that they would run out of money. They told the public numerous times they did have the money for the season up to February, 2014 which was a lie. And the cherry on the cake is the Deputy PM denouncing the World Bank, demanding to know where they got the figures while saying they were wrong and the PTP were right. Guess what…..The PTP were wrong!

​Kikoman - When ever my 3 year old son does something wrong he blames his 6 year old sister for it. Most would say it is really him that did something wrong.

Now if my 3 year old son was the PTP and his 6 year old sister was the DEM's you would say my son is an angel and my daughter is a devil.

Do you think the PTP should have listened to the independent organizations that you like to denounce because they don't agree with the PTP?

Do you think the PTP should have been honest and transparent with the public and told them they have no money and they need to get a loan?

​Do you think a responsible government knowing they have no money would dissolve parliament without ensuring they had liquidity to fund the rice scheme?

Do you think an accountable transparent government would blame everyone else for it's own shortfalls?

Grow up Kikoman. All your comment highlights is a stubborn ignorance and blind devotion to a regime that lacks transparency, accountability and honesty.

Edited February 28, 2014 by djjamie

[Baerboxer]

I thought the farmers had been promised their delayed payments would finally be handed out this week?

Indeed. The caretaker PM/DM gave them that "vow". A vow is usually considered an even bigger commitment than a promise.

The she ran off up North.

[noitom]

All the more reason to hold elections. Pheu Thai should nominate a candidate, democrats nominate Abhisit or someone, and Suthep should run or designate someone to head a party that he legally forms. Hold elections and stick to the result. Then the PM can pay farmers. One way or another the farmers have to be paid. You either take out a loan, print money, sell some gold, or tax the land in Bangkok. The farmers have to be paid. If you handcuff Yingluck tomorrow and tar and feather her, the farmers still have to be paid. Issues should be prioritized.

[Mosha]

Terrible lot of iff's and but's in that lot, and the farmers might get paid my the end of the year, that'll make them happy.

You're such a pessimist. What can possibly go wrong.

[Lupatria]

How long does a "not fake" g2g deal with China take to put together?

Depending on how long it takes to fill a briefcase with bank notes.

The repeatedly made statements in this case remind me on grandma's wisdom:

...sweet songs never last to long on broken radios!

Edited February 28, 2014 by Lupatria

[The Deerhunter]

All the more reason to hold elections. Pheu Thai should nominate a candidate, democrats nominate Abhisit or someone, and Suthep should run or designate someone to head a party that he legally forms. Hold elections and stick to the result. Then the PM can pay farmers. One way or another the farmers have to be paid. You either take out a loan, print money, sell some gold, or tax the land in Bangkok. The farmers have to be paid. If you handcuff Yingluck tomorrow and tar and feather her, the farmers still have to be paid. Issues should be prioritized.

2 good examples of prioritizing. Paying the farmers in Sept or Oct when due, and, arranging funds before dissolving parliament. Unfortunately neither of these things happened.

Also, elections are not the be-all & end all at the moment. Thailand is not doing well at at embracing the responsibilities of democracy.

Two examples of that! 1. Voting in a govt run by a man who stole billions & hides in self imposed exile to avoid the consequences. 2. Blindly supporting that government for reasons of misguided local patriotism while the results of that situation are clear to everyone who can read newspapers, watch TV or listen to the radio.

Continuing to make the exact same mistake & expecting a different outcome is defined as stupidity.

[CantSpell]

All the more reason to hold elections. Pheu Thai should nominate a candidate, democrats nominate Abhisit or someone, and Suthep should run or designate someone to head a party that he legally forms. Hold elections and stick to the result. Then the PM can pay farmers. One way or another the farmers have to be paid. You either take out a loan, print money, sell some gold, or tax the land in Bangkok. The farmers have to be paid. If you handcuff Yingluck tomorrow and tar and feather her, the farmers still have to be paid. Issues should be prioritized.

I definitely agree with you....

We should really handcuff Yingluck, and tar and feather her..

That is a priority

Edited February 28, 2014 by CantSpell

[Always18]

I'm a bit confused................is this the same G2G rice deal that the Chinese govt allegedly "backed out of" (read "never existed in the first place") a few weeks ago that has just been magically resurrected, or is this yet another pie-in-the-sky fake deal they've dreamed up after one too many glasses of the amber nectar?

Either way, it ain't gonna happen and is just the latest puff of hot air from this sad bunch of liars.