Struggle for Thai rice funds continues

[webfact]

Struggle for rice funds continues
Petchanet Pratruangkrai,
Suphannee Pootpisut
The Nation

BANGKOK: -- The Finance Ministry continues making a strong effort to raise funds to pay farmers in arrears under the rice-pledging programme through the issuance of Bt20 billion worth of saving bonds despite the remaining doubts over their legality.

Meanwhile, the Commerce Ministry has accelerated sales of rice from the government's stockpile to as much as 800,000 tonnes a month, hoping to earn Bt80 billion in nine months.

In the short term, there are only a few choices left for the government to obtain money either from the Farmers' Assistance Funds announced last week or from the sale of rice to pay the farmers.

The Finance Ministry has failed twice to raise the needed money via short-term loans. First it held an auction for a bridge-financing loan of Bt20 billion from financial institutions. Then it called for bids for Bt20 billion in promissory notes for general investors. No one participated in either auction.

The main reason for the lack of bidders was the lack of assurance that a caretaker authority can legally raise funds via bond issuance. Another reason was that many state enterprises were reluctant to take part because of strong opposition from their employees.

"One of many ways to seek funds that the authorities are discussing is issuance of bonds. So far, there has been no conclusion on whether the Finance Ministry will guarantee the bonds. However, this is expected to be finalised in the next few weeks," Luck Wajananawat, president of the Bank for Agriculture and Agricultural Cooperatives (BAAC), said yesterday.

He said the bonds should be guaranteed by the ministry, but "if the bonds are to be guaranteed by the BAAC instead, the matter will be discussed by the bank's board first, considering the legal issues and risks".

The Commerce Ministry is expected to release about 800,000 tonnes of rice a month from the government's stockpiles this year. It also expects China to sign another government-to-government contract with Thailand for rice purchase, while many other countries will order more from the Thai private sector.

Srirat Rastapana, permanent secretary of the Commerce Ministry, said a Chinese government agency had shown high interest in signing a G2G rice contract with Thailand soon.

According to a ministry source, China will this week sign a contract for purchase of about a million tonnes of rice. The contract will be signed by Chinese state-owned enterprise COFCO and the Thai Foreign Trade Department.

Previously, Thailand had to cancel a similar G2G contract with China, after that deal was suspected of being falsified and was investigated by the National Anti-Corruption Commission.

Srirat said Thailand should also be able to export more rice in the following months as many countries had placed orders with private exporters. Given the upcoming drought season, the government should be able to release more rice from the stockpiles, as many private traders needed it to supply foreign buyers, she said.

Meanwhile, the ministry has ordered the Thai Trade Representative in Indonesia to hold talks with that country's Trade Ministry on reported dumping allegations against Thailand on the rice price.


-- The Nation 2014-03-04

[chainarong]

No doubt about the PTP promising something you haven't got , just to buy votes, the hopes of rice farmers were pinned on the money received, the government is struggling to raise / sell to make the payments ,these disgusting people who try to call themselves politicians should hang their heads in shame and leave quietly.

[LomSak27]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

[JRSoul]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

You forgot the EC and the Constitutional Court, whoever put that clause in whichever constitution, and the banks and investors who recognise the illegality of the loans.

It's a huge conspiracy to make PTP look inept and corrupt, as if they needed help.

[Ricardo]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

What did the Dems do, last October, to prevent the government from continuing to pay out ?

And who decided to call an election, without having their government's finances in-order to carry through to the new government, was that also the Dems & PDRC ?

If one cannot defend the indefensible, then blame it on someone else, seems to be the strategy !

[johnthompson]

So they are selling it at B11.000 baht per ton now but YL said it would be cost neutral for the government. Another one of their prophecies that didn't happen.

[Mosha]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

They should have paid up in October then. Nowt to do with the Dems or PDRC.

[TheClog]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

[Mosha]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

The lack of funds is the military's fault?

[TallGuyJohninBKK]

Ahh.... so you want to leave it to the elected guys... But then allow the "unelected guys", as in a caretaker government, to do and spend whatever they want???

Of course, it also was the PTP "elected guys" who created and promoted the unsustainable rice pledging program in the first place.

They knew the rules re caretaker governments when they were in charge and before YL dissolved Parliament. But of course, paying the farmers wasn't their top concern at that point. Rather, it was bringing home a fugitive PM and whitewashing his record.

In this instance, the "elected guys" seem to have made a major mess of things all the way around.

[Yunla]

In the short term, there are only a few choices left for the government to obtain money either from the Farmers' Assistance Funds announced last week or from the sale of rice to pay the farmers.

How badly do you have to mismanage a rice-selling scheme to suddenly announce almost a year after you received the rice, that selling it is one possible way of paying the poor long-suffering farmers for their product.

[onlycw]

The Commerce Ministry is expected to release about 800,000 tonnes of rice a month from the government's stockpiles this year.

Bloody hell - they are playing games with a perishable and thus declining asset. Apart from the political issues here, such people need to be fired as managers for such an undertaking.

At my father's company, one employee didn't understand how to maintain stocks:

LIFO instead of FIFO => an enormous loss as tons of goods had to be scrapped.

This is no time for the way many Thais like, even in traffic. Slowly creeping into a busy lane...

The time is to make the fundamental decision to end this ill fated and costly program. No more subsidies, period. (The poorest 2.59 million farmers cannot participate anyhow). And for heaven's sake, sell the what, 18 m tons asap,

Edited March 4, 2014 by Scott
Font/color

[Barney R]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

You obviously have no idea so why post ? You are just trolling go look at the facts starting from last October and this time open both eyes .

[ChrisY1]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

If the government had meaningful budgets....the money would have been put aside....instead, as we all know, they took it..or lost it...who knows where it's gone until the court finds out.

It can't be the PDRC or the Dems that prevented payments....the govt. was attempting to loan funds illegally..!

[DinoSabanovic]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

HAHAHA. Someone is trolling? Open your eyes Dude.

[Crushdepth]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

The lack of funds is the military's fault?

Isn't everything?

[gemini81]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

Wow, sheer brilliance in your critical thinking and spelling.

The corruption was noticed and even in international news (check Economist Aug. 2013; long before the PRDC.) This is the graft that started as soon as they took office (research the flood disaster funds for starters).

Edited March 4, 2014 by gemini81

[trogers]

Step back to Oct 2013. Should there have been no corruption and diversion of part of the Bt500b revolving fund for the rice pledging scheme, all farmers would have been paid by end of 2013.

[Robby nz]

Other rice exporting countries are starting to complain now that Thailand is hurting the international rice trade and forcing prices down.

Has to be remembered that what the government is selling (trying to sell) is on top of the present crop being harvested,

For good factual info have a look at ORYZA web site http://oryza.com/news/thailand-exports-59-million-tons-rice-january-%25E2%2580%2593-november-2013

Hope I'm allowed to put that link Mods.

[thaifoolishness]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

Wow! A long term Thaksinista. Member since 21 Feb 2014, that's nearly 2 weeks!

[mrtoad]

A few people been sipping that Red Koolaid this morning.

[Goat Roper]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

You forgot the EC and the Constitutional Court, whoever put that clause in whichever constitution, and the banks and investors who recognise the illegality of the loans.

It's a huge conspiracy to make PTP look inept and corrupt, as if they needed help.

Please tell what PTP has ever done that does not make them look inept?

[rubl]

"Meanwhile, the ministry has ordered the Thai Trade Representative in Indonesia to hold talks with that country's Trade Ministry on reported dumping allegations against Thailand on the rice price."

I don't understand. Does this mean the Thai government is NOT making a huge profit on the rice sales?

[ManofReason]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

Wow! A long term Thaksinista. Member since 21 Feb 2014, that's nearly 2 weeks!

What has the length of anyones TV membership have to do with anything?

After a certain period of time on this forum are some sort of magical powers bestowed?

Surely people here don't believe that simply because they have been a member on TV longer than someone else that their views and opinions automatically trump those of the newbies?

By the amount of one eyed, closed minded views that are contrary to facts, reason or logic expressed here it just may well be the case that some fools think that length of membership is directly related to truth and accuracy.

Go figure.

[thaifoolishness]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

Wow! A long term Thaksinista. Member since 21 Feb 2014, that's nearly 2 weeks!

What has the length of anyones TV membership have to do with anything?

After a certain period of time on this forum are some sort of magical powers bestowed?

Surely people here don't believe that simply because they have been a member on TV longer than someone else that their views and opinions automatically trump those of the newbies?

By the amount of one eyed, closed minded views that are contrary to facts, reason or logic expressed here it just may well be the case that some fools think that length of membership is directly related to truth and accuracy.

Go figure.

It happens a lot. However as with everything to do with 'that family' I'm sure there is a perfectly innocent explanation

Actually though I would most definitely say that if someone has been a member of TV longer their views most likely trump those of 'newbies', if nothing else they have been in Thailand longer and therefore know the country better. As for 'length of membership' being 'directly related to truth and accuracy', again yes. The very fact that newbies like yourself keep popping up espousing the Thaksin cause and spreading their BS proves it. All IMHO...

[AleG]

So they are selling it at B11.000 baht per ton now but YL said it would be cost neutral for the government. Another one of their prophecies that didn't happen.

"And no dumping! cross my heart and hope to die if I'm lying!"

Ominous thunderclap in the distance

[Crushdepth]

This is the sort of mess that arises when military juntas write their own constitutions and unilaterally impose it.

Leave it to the elected guys.

Wow! A long term Thaksinista. Member since 21 Feb 2014, that's nearly 2 weeks!

Sadly, they don't live long in the boiler room and must be replaced frequently.

[SOTIRIOS]

....the fantasy continues....

[monkey4u]

Has the Shin clan been paid for its rice yet??

I am sure some of them must own land used to grow rice

[Thaddeus]

Good job by the dems and PDRC to prevent payment!

there just rice farmers, why whould they change their colors and care now?

You forgot the EC and the Constitutional Court, whoever put that clause in whichever constitution, and the banks and investors who recognise the illegality of the loans.

It's a huge conspiracy to make PTP look inept and corrupt, as if they needed help.

Please tell what PTP has ever done that does not make them look inept?

They reduced corporation tax.

(cynical remark, for the hard of thinking)