Rice farmers now reliant on 'low' market prices

[webfact]

RICE
Rice farmers now reliant on 'low' market prices
Petchanet Pratruangkrai
The Nation


Rice farmers wait yesterday to meet officials from the Office of the Attorney General, which agreed to submit their case taking the caretaker government before the Administrative Court for failing to meet its commitments under pledging contracts.

BANGKOK: -- Already hit by overdue payments from the caretaker government under its pledging scheme, rice farmers from today will suffer yet further by getting lower income from selling their produce at market prices after the end of the project.

According to the Thai Rice Mills Association, the market price for 100-per-cent white rice (15-per-cent humid) is quoted at Bt7,200-Bt8,500 a tonne, compared with the former pledging price of Bt15,000.

The market price for 30-per-cent humid rice, meanwhile, is Bt11,600 a tonne.

The Internal Trade Department unofficially reported that more than 11 million tonnes of paddy had entered the government's pledging programme, which ended yesterday.

The government has issued pledging documents to about 1.91 million farmers, while only 546,780 have been paid in full under the project. As of Wednesday, a total 11.3 million tonnes of paddy had been pledged.

A rice-miller source said farmers would from today get even lower payment from selling their produce, as the market had acknowledged that the government needed to release more rice to generate income from the pledged produce.

"Farmers will be the ones who suffer the most from lower rice prices. Millers cannot help much, as the market trend has responded to the high government stockpiles, while the world market recognises that Thailand needs to sell rice urgently to get some return from the pledging project to fulfil its overdue payments," said the source.

He added that lower rice prices in the market had clearly shown that the pledging scheme - with its too-high subsidised prices - had not benefited farmers in the long run.

Chanudpakorn Vongseenin, president of the Public Warehouse Organisation, said the agency would try to tot up the amount of pledged rice this week, before reporting the results to the National Rice Policy Committee.

The total amount of pledged rice should not exceed 11 million tonnes of paddy, he said.

Somporn Isvilanonda, an economist at the Knowledge Network Institute of Thailand, said he believed farmers would suffer yet more if the next government's plan to support their next crops was unclear.

Moreover, the price of rice would continue to decrease as the government now holds more than 18 million tonnes in its stockpiles, he claimed.

Meanwhile, the Office of the Attorney General has accepted a plea by rice farmers for a petition to take the caretaker government before the Administrative Court for failing to meet its pledging-contract commitments.

The office will set up an area for farmers to register their names before filing the case before the court.

In a related development, the Lawyers Council of Thailand, which will help farmers file the overdue-payment case against caretaker Prime Minister Yingluck Shinawatra and other ministers and government agencies involved with the pledging project, will next week file the case with the provincial court.

So far, about 24,000 farmers have registered their names to file a suit against the caretaker administration.


-- The Nation 2014-03-01

[terryp]

hows your master in Dubai now !...still the demigod you all made him LOL

[Robby nz]

The greatest blow for the farmers is seeing their income halved in one sudden thump where the income from the crop presently being harvested may not even cover the debts incurred from non payment for the previous crop.

That the Govt is now in competition with them as a rice seller makes their situation even worse for that can only drive prices even lower.

Given yesterdays revelation of the rotten rice in Phitsanulok there must be serious questions as to how many other warehouses are in a similar or even worse condition.

We saw the recent fire in the semi collapsed warehouse in Lopburi and then there have been over 20 other warehouse fires so just how much rice is there in good condition for the Govt to sell, is there even enough to cover what they owe the farmers without taking into account all the other related expenses. ?

Which ever way you look at it the farmers have been left holding the filthy end of this one.

[zakk9]

All available expertise on rice trade predicted this when the pledging scam was started, and again, the farmers are the ones that have to pay the price for the governments incompetence or stupidity or greed or whatever it is. That you Thaksin, that you care so much for the farmers... not

Edited February 28, 2014 by zakk9

[JRSoul]

The shake-out of the rice industry is now beginning, and it is going to be painful for many. Even the reasonably efficient farmers with larger crop areas will struggle in this market; less efficient will have to switch to other crops, abandon farming and sell up, or learn the hard way when a year's work returns a minimal profit or a loss.

If just a small portion of the money lost in the rice scam had been used to induce farmers away from rice farming this pain could have been reduced. Instead an economically insane policy has caused more to switch to the crop and others to invest heavily on new equipment, all in the aim of buying their votes. Well that worked once, but after what for many will be the worst year of the life for earning, there is little hope of voter loyalty IMHO.

[trogers]

A Thai rice farmer's dream:

"I still have a dream, a dream deeply rooted in the farmer's dream – one day the price of rice will rise up again and clear all my debts and make me rich..."

Meanwhile...it's the taxpayers' nightmare...

Thanks to one man!

[Robby nz]

Another big problem is that the farmers have become conditioned to want more.

They have adjusted away from relying on market prices for their income and have gone into more expensive means to take advantage of the unrealistic price offered.

They will now be ready to jump at any offer of assistance by any political party whether it be in the form of subsidies or price guarantees, in other words they are now even more open to vote buying.

If there is to be any assistance in the future it should be in a diminishing form with the intention of promoting efficiency to the stage where the farmers can make a profit from market prices.

We see from stats that the Thai farmers are not only the least efficient in the region producing less rice per rai than their competitors in other countries but that Thailand also has the highest processing and handling costs.

These are the things that really need to be addressed along with quality of product which has also declined.

[PatOngo]

Screwed....totally!

[Suriya4]

Better get half price than no payment.

[473geo]

I make the market price a little higher in Vietnam, strange nobody here now accusing the millers and middlemen of taking a profit..........there appears to be fair old margin for these guys, and I got the impression some Tvisa posters believed the margin was sole creation of the rice subsidy scheme!

[473geo]

Cut out the crocodile tears and the pathetic political posturing guys, remember those calling for the subsidy to be scrapped due to the tax burden, remember those calling for 'market price', well don't pretend to pity the farmers because you now have your visions realised

And another small point, if as stated by many on this forum there was no benefit to the farmer from the rice subsidy..........having to accept 'market price' will not make any difference to their income......right guys?

Anyway a good time to expand

[intacome]

Talking rice blues

I woke up the other day looked at my rice and said hey.

It’s ready to harvest and thought what I should do to get my pay.

Well I aint in this bonus scheme so all I get is the market rate.

I’m standing there thinking this when along comes a guy and says Hi.

Hi says I and he says wait I can get you over the odds it aint no lie.

I’m no fool and told him so.

But he said no so let’s just go.

So we cut the rice then head off to the Millers place.

We got there and I’m looking at the farmers.

They all standing about waving papers and looking keen.

With stamps and seals and other stuff its quite a scene.

Well we weigh my rice and then were down the road.

We stop where we aint seen and count the money and I get my pay.

Its 3 Baht over the market rate so I aint complaining.

Before I leave I look back and see the miller counting.

The guy who cut my rice gets his share.

But I don’t care.

I can feed my family pay my bills

Going back home I see the farmers, what a bunch..

I’ve got my money but you’re gonna feel the crunch.

[intacome]

Talking rice blues

I woke up the other day looked at my rice and said hey.

It’s ready to harvest and thought what I should do to get my pay.

Well I aint in this bonus scheme so all I get is the market rate.

I’m standing there thinking this when along comes a guy and says Hi.

Hi says I and he says wait I can get you over the odds it aint no lie.

I’m no fool and told him so.

But he said no so let’s just go.

So we cut the rice then head off to the Millers place.

We got there and I’m looking at the farmers.

They all standing about waving papers and looking keen.

With stamps and seals and other stuff its quite a scene.

Well we weigh my rice and then were down the road.

We stop where we aint seen and count the money and I get my pay.

Its 3 Baht over the market rate so I aint complaining.

Before I leave I look back and see the miller counting

The guy who cut my rice gets his share.

But I don’t care.

I can feed my family pay my bills

Going back home I see the farmers, what a bunch..

I’ve got my money but you’re gonna feel the crunch.

[Lupatria]

Better get half price than no payment.

Try to explain this to a Thai. The philosophy here is: if a restaurant loses 50 % of its customers, the remaining has to pay double to secure the revenue.

[Lupatria]

Talking rice blues

I woke up the other day looked at my rice and said hey.

It’s ready to harvest and thought what I should do to get my pay.

Well I aint in this bonus scheme so all I get is the market rate.

I’m standing there thinking this when along comes a guy and says Hi.

Hi says I and he says wait I can get you over the odds it aint no lie.

I’m no fool and told him so.

But he said no so let’s just go.

So we cut the rice then head off to the Millers place.

We got there and I’m looking at the farmers.

They all standing about waving papers and looking keen.

With stamps and seals and other stuff its quite a scene.

Well we weigh my rice and then were down the road.

We stop where we aint seen and count the money and I get my pay.

Its 3 Baht over the market rate so I aint complaining.

Before I leave I look back and see the miller counting

The guy who cut my rice gets his share.

But I don’t care.

I can feed my family pay my bills

Going back home I see the farmers, what a bunch..

I’ve got my money but you’re gonna feel the crunch.

As to the quality of your skills as a “songwriter” – ever considered a career in fruitcarving?

[Thait Spot]

Cut out the crocodile tears and the pathetic political posturing guys, remember those calling for the subsidy to be scrapped due to the tax burden, remember those calling for 'market price', well don't pretend to pity the farmers because you now have your visions realised

And another small point, if as stated by many on this forum there was no benefit to the farmer from the rice subsidy..........having to accept 'market price' will not make any difference to their income......right guys?

Anyway a good time to expand

From zero to market price sounds like a good deal to me.

I wonder how much the people's republic of Lanna will pay them with such low tax income?

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[moe666]

There market price will be lower as they have been planting low quality rice which matures in 90 days as opposed to 120, lower price for crappy rice. No reds here defending a scam or promoting Yingluck Rice

[janpharma]

Instead of speaking of "low" prices, one should call it "normal" prices. Just take a look at the surrounding countries who deliver the same quality at half the (high) Thai price. Get realistic...

[marko kok prong]

Not looking good,as the article about the rotten rice in Phitsanlok,i wonder how many storage warehouses have rotten rice.

[ramrod711]

Moreover, the price of rice would continue to decrease as the government now holds more than 18 million tonnes in its stockpiles, he claimed.

Good work Yingluck! Has your brother given you any ideas as to how the country gets out of this mess?

[thhMan]

hows your master in Dubai now !...still the demigod you all made him LOL

Probably one of the nastiest posts I have seen for a while (That was not mine)

Rice farmers are not the most educated people in the world and many will go buy whats said by the "educated" on TV, radio and other media.

Have you ever been kicked in the guts when your down and your family is suffering?

[SICHONSTEVE]

Better get half price than no payment.

Try to explain this to a Thai. The philosophy here is: if a restaurant loses 50 % of its customers, the remaining has to pay double to secure the revenue.

Its the same when, for example a train service loses money (because it is expensive) - what do they do to try and recover the losses? Put the prices up!!!! Doh!!

[zakk9]

Cut out the crocodile tears and the pathetic political posturing guys, remember those calling for the subsidy to be scrapped due to the tax burden, remember those calling for 'market price', well don't pretend to pity the farmers because you now have your visions realised

And another small point, if as stated by many on this forum there was no benefit to the farmer from the rice subsidy..........having to accept 'market price' will not make any difference to their income......right guys?

Anyway a good time to expand

Few if any ever opposed the fact that the farmers, particularly those in Isan, needed help to improve their profits and living conditions. However, this unrealistic scheme has made many farmers increase their costs, often borrowing money to acquire new equipment to produce more due to the high prices they were offered, and to buy cars and other things they thought that they could now afford. Now, they are left with lower prices than before, partly due to the huge amount of rice in stock, and partly due to the damaged reputation of Thai rice, a result of producing lower quality rice to earn a higher profit in a scheme that didn't care about quality of the product. The reality for many will be that they lose more than they gained to start with, in many cases land, vehicles and even homes, while the tax payers are left with hundreds of billions of baht in debts to pay for the adventure.

[WilliamCave]

But they continue to buy in to YL government .

I am starting to lose a lot of sympathy for the farmers because they still follow her and her lies .

They are responsibility for there actions.

[slapout]

The rotten, spoiled, burned, missing rice stock, if this program was above board, would be a god send to the government. They would be reinbursed for the rice at their cost. Of course this would be dependent upon the government requiring storage warehouse bonding/insuranse for those they are paying to store and safeguard the rice.

I have found that the company names on the latest storage of rotten rice seem to be unknown on google. They are noted as mills, and seem to operate under names that are known to the public, but virtually no real info. There are reported to be 2900 of these storage facilities, whose task to inspect same, was deligated to the Attorney General office. (I am sure they have the personal and expertise) to handle this assignment.????? The RTP via the present caretaker Labor Minister were given additional budget of 150 million to ensure all was above board and of course the additional remote camera/monitors budget was another taxpayer expense.

The number of people involved in the corruption of this program, may make the 300 plus MP's who were caught red handed fiddling the system, look like the tip of the iceberg. There may be a real chance to clean up the corrupt political system, ban, jail, take restitution, from the lot of them and those remaining would not number enough to make a football team.

[JesseFrank]

hows your master in Dubai now !...still the demigod you all made him LOL

I'm afraid that he still is, because he promise them double that price, the fact that he actually doesn't pay them is another card in his favor, because he will blame that on the opposition.

He isn't a demigod, he's the devil in disguise.

Edited March 1, 2014 by JesseFrank

[Ricardo]

Moreover, the price of rice would continue to decrease as the government now holds more than 18 million tonnes in its stockpiles, he claimed.

Good work Yingluck! Has your brother given you any ideas as to how the country gets out of this mess?

Oddly enough, it's been 'All Quiet On The Middle-Eastern Front', since before the scheme started to fall apart so publicly, several months ago.

No doubt there are still fascinating opportunities in the African coal/gold/diamond-industries, to compensate for the reduced-opportunities in grain-futures as world prices fall in the face of over-supply, for the astute businessman ?

Meanwhile one hopes that, whatever new government emerges from the political mess, settling the previous-government's overdue-debts & establishing a more-modest/affordable less-corrupt/misguided rice-scheme will be high on their agenda. If only for the sake of the poor rice-farmers.

But with such a large overhang, of high-cost government-owned rice-stocks, there will still be plenty of grief to come yet.

[Pimay1]

I saw a remark by one of the farmers in another article that Yingluck's and the cabinet members's assets should be siezed and used to pay the farmers. Now that's a novel idea.

[moe666]

Instead of speaking of "low" prices, one should call it "normal" prices. Just take a look at the surrounding countries who deliver the same quality at half the (high) Thai price. Get realistic...

But other countries do not have the Shins running there rice trading system

[473geo]

The shake-out of the rice industry is now beginning, and it is going to be painful for many. Even the reasonably efficient farmers with larger crop areas will struggle in this market; less efficient will have to switch to other crops, abandon farming and sell up, or learn the hard way when a year's work returns a minimal profit or a loss.

If just a small portion of the money lost in the rice scam had been used to induce farmers away from rice farming this pain could have been reduced. Instead an economically insane policy has caused more to switch to the crop and others to invest heavily on new equipment, all in the aim of buying their votes. Well that worked once, but after what for many will be the worst year of the life for earning, there is little hope of voter loyalty IMHO.

Well Mick in the shake out the middlemen will still maintain their margin, there will be more migration to the cities, but the rural economy has grown, where rural areas have prospered farmers enthusiastically take up available alternative income opportunities created by the recent boost in the rural economy, these second jobs sit alongside the rice farm and assist in payment for machinery, secondary work necessitates the requirement to spend less time on the crops thus the production cost rises through machinery purchase or hire to free up available time, but the rice crop becomes secondary income

There will be incentives from future governments because they will not survive without supporting a now strong rural economy. However a non elected peoples council would have no worry about voters, The concern will be if the rural growth is allowed to slow, the opportunity for second jobs declines, and a future government, or peoples coucil leaves the small farmer to rot, at least PTP only have rotting rice, and angry tax payer, but a strong rural economy!

Many farmers have moved on and diversified I doubt this is known, or acknowledged, by those who are not closely involved but continue to spout on this forum

Voter loyalty? well you think the farmer is going to recall the 25% increase in the end price, and who delivered, I do Mick, especially now when the end price has plummeted, strange how many on these boards cannot even decipher human nature and the traits that lie within. I didn't notice a massive walk out by government employees refusing to their allocated wage increase as it may be considered vote buying! How long did they protest about the increase?

I think wind farming may be the next big thing..(Tvisa posters may offer valuable assistance here)...income for farmers, government subsidy for sure, opportunity for investors, big return for the country vs nuclear power.......has it all.....and farmers can grow a little subsistence crops alongside

Edited March 1, 2014 by 473geo