Rice mills underprice Thai govt's stockpiled rice

[allan michaud]

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The expected price of 2011/2012 season rice is 9.50 baht/KG; 2012/2013 rice would be 9.60 - 9.70 baht/KG while the best quality rice from the 2013/2014 season should bring around 11 baht/KG. The rice millers are certain that the price will not exceed the global price tag of 12.30 baht/KG

An important fact regarding the quoted part is that the expense of the Rice Scheme has been around 29 Baht per kilogram. The government sold the Rice Scheme as being financed with a "revolving" fund of 500 Billion, thus no need to make it part of the government's budget; obviously when you loose up to 2 Baht for every 1 you receive the only "revolving" thing going on is the spiraling down the toilet of the money, so how was PTP planning to finance the scheme in the long run?

The answer is either that they didn't know it would turn out like this, in which case they are completely incapable of governing anything, or they were aware it will end like this in which case they knowingly set in motion a policy that was going to cause enormous damage to the country, I would call that criminal beheaviour.

In my opinion, they knew it was going to be a loser, probably not this bad though. The plan was to rob enough from the 2 trillion baht loan to cover the loss, that's why they stipulated that there would be no oversight.

You are forgetting that Thaksin's original plan was to get Vietnam and India to join Thailand in hoarding rice and driving up the global price. Strangely enough they declined. He also was also quoted at some point early on that he believed there would be a global food shortage soon, as there had been in 2008 or 09. He apparently said that they could then make a lot of money charging higher prices to desperate countries. Nice chap!

Given no other countries wanted to join his plan, I fail to understand how they could have gone ahead with it, particularly as everyone was already hoarding rice because of the recent shortage. As someone said earlier, basics of supply and demand, the plan was guaranteed to fail dramatically.

As such it can only be considered criminal, because I find it impossible to believe ANYONE could be that stupid.

Edited March 12, 2014 by allan michaud

[VINCENT2012]

in ubon where i live the price of the rice with the dry skin (wet skin is paid under the price given) has been bought like the past few years for about 17 to 20 baths a kg to the farmer in cash...it is impossible because of the cost to sell it under that price anyway...and some thais every season go around to buy entire truck of rice to sell it later to the government....the one who complain actually....who want their money back...so now you can make the math and see how many billion of baths the country is loosing because of the shinawatra rice politic.

i really wonder before why the chineses decided to buy the thai rice so urgently ? for what? because they love each other or because the government need money very quickly and they will make an excelent operation buying it under explotation price....who pays now...as usual the thai tax payers...as simple as that!

5% moisture....it must be a joke......it is not me who is going to tell thais or asian that the rice as to be 100% dry before you stock it for a year or two..one thing...... the keeper are really incompetent, or really don't care at all.

good day and good night

Edited March 12, 2014 by VINCENT2012

[JRSoul]

"This circumstance has lessened the government’s bargaining power and obliges it to accept a possible loss in the process."

Notice the big lie, quietly slipped in amongst the verbiage. As if they were EVER going to make a profit.

[Thai at Heart]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

The expected price of 2011/2012 season rice is 9.50 baht/KG; 2012/2013 rice would be 9.60 - 9.70 baht/KG while the best quality rice from the 2013/2014 season should bring around 11 baht/KG. The rice millers are certain that the price will not exceed the global price tag of 12.30 baht/KG

An important fact regarding the quoted part is that the expense of the Rice Scheme has been around 29 Baht per kilogram. The government sold the Rice Scheme as being financed with a "revolving" fund of 500 Billion, thus no need to make it part of the government's budget; obviously when you loose up to 2 Baht for every 1 you receive the only "revolving" thing going on is the spiraling down the toilet of the money, so how was PTP planning to finance the scheme in the long run?

The answer is either that they didn't know it would turn out like this, in which case they are completely incapable of governing anything, or they were aware it will end like this in which case they knowingly set in motion a policy that was going to cause enormous damage to the country, I would call that criminal beheaviour.

In my opinion, they knew it was going to be a loser, probably not this bad though. The plan was to rob enough from the 2 trillion baht loan to cover the loss, that's why they stipulated that there would be no oversight.

You are forgetting that Thaksin's original plan was to get Vietnam and India to join Thailand in hoarding rice and driving up the global price. Strangely enough they declined. He also was also quoted at some point early on that he believed there would be a global food shortage soon, as there had been in 2008 or 09. He apparently said that they could then make a lot of money charging higher prices to desperate countries. Nice chap!

Given no other countries wanted to join his plan, I fail to understand how they could have gone ahead with it, particularly as everyone was already hoarding rice because of the recent shortage. As someone said earlier, basics of supply and demand, the plan was guaranteed to fail dramatically.

As such it can only be considered criminal, because I find it impossible to believe ANYONE could be that stupid.

A thai leading India and Vietnam...

Herding cats is easier

[Thai at Heart]

in ubon where i live the price of the rice with the dry skin (wet skin is paid under the price given) has been bought like the past few years for about 17 to 20 baths a kg to the farmer in cash...it is impossible because of the cost to sell it under that price anyway...and some thais every season go around to buy entire truck of rice to sell it later to the government....the one who complain actually....who want their money back...so now you can make the math and see how many billion of baths the country is loosing because of the shinawatra rice politic.

i really wonder before why the chineses decided to buy the thai rice so urgently ? for what? because they love each other or because the government need money very quickly and they will make an excelent operation buying it under explotation price....who pays now...as usual the thai tax payers...as simple as that!

5% moisture....it must be a joke......it is not me who is going to tell thais or asian that the rice as to be 100% dry before you stock it for a year or two..one thing...... the keeper are really incompetent, or really don't care at all.

good day and good night

Vincent. Take a breath and tell is ur story another time please.

[rametindallas]

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

The very reason for the rice pledging was because the government understood the mechanisms behind supply and demand. The private buyers try to buy the rice at the lowest price they can, and part of that is taking advantage of the fact that when the rice farmers harvest and are wanting to sell there is a large supply; and also they know most small farmers are mortgaged up to the hilt and cannot afford to store their rice until the supply goes down and the price rises. The government's rice pledging was an attempt to assure the rice farmers got a better-than-market price for their rice. This was done partially as a subsidy for the farmers and partially as a political plum to engender their loyalty.

cannot afford to store their rice until the supply goes down and the price rises.

So, now, this is not an option anymore, even for farmers not in debt because the government stockpiles will never go down and the price will never rise. You destroy your own argument. I think you need a new name as you don't seem smart.

Since Thai rice farmers are the least productive rice farmers in ASEAN, If the government wanted to truly help them, they would have helped them modernize their methods of production to bring them up to par with the neighboring countries' farmers. It should have brought diversity of crops and education to help some of the poorest to transition away from farming altogether.

What happened is, Thaksin saw an opportunity to create an off-budget scheme, using borrowed money, which he and his family and cronies, could and did, plunder. Only 180 billion, of the more than 600 billion Baht borrowed, has gone to farmers and the government is fighting to keep the accounting for the rest of the money a State Secret.

Now we have a new apologist for the Crook in Dubai.

Edited March 13, 2014 by rametindallas

[rametindallas]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

The expected price of 2011/2012 season rice is 9.50 baht/KG; 2012/2013 rice would be 9.60 - 9.70 baht/KG while the best quality rice from the 2013/2014 season should bring around 11 baht/KG. The rice millers are certain that the price will not exceed the global price tag of 12.30 baht/KG

An important fact regarding the quoted part is that the expense of the Rice Scheme has been around 29 Baht per kilogram. The government sold the Rice Scheme as being financed with a "revolving" fund of 500 Billion, thus no need to make it part of the government's budget; obviously when you loose up to 2 Baht for every 1 you receive the only "revolving" thing going on is the spiraling down the toilet of the money, so how was PTP planning to finance the scheme in the long run?

The answer is either that they didn't know it would turn out like this, in which case they are completely incapable of governing anything, or they were aware it will end like this in which case they knowingly set in motion a policy that was going to cause enormous damage to the country, I would call that criminal beheaviour.

In my opinion, they knew it was going to be a loser, probably not this bad though. The plan was to rob enough from the 2 trillion baht loan to cover the loss, that's why they stipulated that there would be no oversight.

You are forgetting that Thaksin's original plan was to get Vietnam and India to join Thailand in hoarding rice and driving up the global price. Strangely enough they declined. He also was also quoted at some point early on that he believed there would be a global food shortage soon, as there had been in 2008 or 09. He apparently said that they could then make a lot of money charging higher prices to desperate countries. Nice chap!

Given no other countries wanted to join his plan, I fail to understand how they could have gone ahead with it, particularly as everyone was already hoarding rice because of the recent shortage. As someone said earlier, basics of supply and demand, the plan was guaranteed to fail dramatically.

As such it can only be considered criminal, because I find it impossible to believe ANYONE could be that stupid.

Thaksin's fortune teller needs to be fired for all the wrong predictions he's given: World food shortage will cause rice prices to spike, You'll get the 2 trillion Baht loan to cover all sins, You'll get amnesty for yourself and Puea Thai, You'll be able to change the Senate so you can pack it with relative and cronies, You can change the Constitution to allow foreign agreements, such as oil deals with Hun Sen's Cambodia, to bypass Parliament, You'll win over the middle class with first car and first house schemes, You can take all kinds of shortcuts and get 350 billion Baht for flood protection to earn quick money, and so on. Really wrong on every prediction. Ronald Reagan's wife Nancy had a astrologer and it hurt more than helped. If you are a leader and want good advise, ask people off the street for advise before you ask a fortune teller.

[Ace of Pop]

Recon the Pro Thaksin Ferangs come under the" My Wife and her Brother told Me Banner". Either that of they never made it back home either so they follow the MOB.

[DekDaeng]

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

Interfere with the free market at your own peril.