Kittiratt set to release Bt20 bn for unpaid rice farmers

[webfact]

RICE
Kittiratt set to release Bt20 bn for unpaid rice farmers
Suphannee Pootpisut,
Petchanet Pratruangkrai
The Nation

BANGKOK: -- Caretaker Finance Minister Kittiratt Na-Ranong says he is ready to release an advance payment of Bt20 billion from the national budget so overdue payments to farmers can be made under the rice-pledging scheme.

Kittiratt said yesterday that he had not yet signed off on the release of the money because of the disbursement process, but he was ready to sign it so farmers owed money before last December 9 could be paid.

He said the Commerce and Finance ministries had cooperated closely to free up the money and no conflicts had been reported.

However, he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales.

"The two ministries will do their best to hand as much money as possible to farmers during this caretaker government," Kittiratt said. "After that, this will be up to the next government."

The Commerce Ministry recently announced the result of its general auction on Monday for 517,000 tonnes of rice. It said it had approved the sale of 180,000 tonnes after negotiating with winning bidders.

The ministry said it had also approved the additional sale of 500,000 tonnes to exporters who had orders from other countries.

"The money expected to be earned from the two lots is around Bt8.5 billion to Bt9 billion," Kittiratt said.

Thursday's scheduled auction of 244,000 tonnes of rice via the Agricultural Futures Exchange of Thailand was postponed until March 26 as there were only three bidders.

As of Thursday, of the 1.52 million farmers who pledged 11.62 million tonnes of paddy rice with the government worth Bt190.81 billion, the Bank for Agriculture and Agricultural Cooperatives has paid Bt71.22 billion to 581,284 farmers for 4.39 millions tonnes of pledged rice.

The government owes Bt119.5 billion to almost a million farmers for the pledging project that ended on February 28.

Meanwhile, the BAAC reported that as of Wednesday, farmers' assistance funds had raised Bt846.29 million.


-- The Nation 2014-03-15

[edwinchester]

Father in law and the guy who rents wifeys paddy has been waiting since last October so this latest promise to pay what is owed can't come too soon.

[Seastallion]

"....It said it had approved the sale of 180,000 tonnes after negotiating with winning bidders.

The ministry said it had also approved the additional sale of 500,000 tonnes to exporters ..."

"The money expected to be earned from the two lots is around Bt8.5 billion to Bt9 billion," Kittiratt said.

If 9 billion bht, that's 1320 (odd) baht per tonne. Sounds a bit high. And why, if the sale is finalised, is there not an exact amount?

"...11.62 million tonnes of paddy rice with the government worth Bt190.81 billion, ..."

1700 (odd) per tonne?

[BSJ]

"he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales." That could be a problem if they haven't got an iron clad contract in place now!

[khwaibah]

"However, he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales."

Just more BS lies..

[Seastallion]

"However, he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales."

Just more BS lies..

Of course.

[JesseFrank]

"....It said it had approved the sale of 180,000 tonnes after negotiating with winning bidders.

The ministry said it had also approved the additional sale of 500,000 tonnes to exporters ..."

"The money expected to be earned from the two lots is around Bt8.5 billion to Bt9 billion," Kittiratt said.

If 9 billion bht, that's 1320 (odd) baht per tonne. Sounds a bit high. And why, if the sale is finalised, is there not an exact amount?

"...11.62 million tonnes of paddy rice with the government worth Bt190.81 billion, ..."

1700 (odd) per tonne?

Think you should look for a new calculator

[Thai at Heart]

Maybe the civil servants won't get paid next week

[gabruce]

"....It said it had approved the sale of 180,000 tonnes after negotiating with winning bidders.

The ministry said it had also approved the additional sale of 500,000 tonnes to exporters ..."

"The money expected to be earned from the two lots is around Bt8.5 billion to Bt9 billion," Kittiratt said.

If 9 billion bht, that's 1320 (odd) baht per tonne. Sounds a bit high. And why, if the sale is finalised, is there not an exact amount?

"...11.62 million tonnes of paddy rice with the government worth Bt190.81 billion, ..."

1700 (odd) per tonne?

Probably because it's the usual "white lie" from Kittiratt. I think as well that this isn't paddy, and it's probably new crop rice only, the most valuable.

[thesetat2013]

Am i the only one that sees this 20bt as a debt added to a new admin? Which is illegal? They claimed it must be paid by May. It is still a loan since they are borrowing and must repay at a certain time.

And as a caretaker Gov is not permitted to incur any new debts wouldn't this still be thought of as a new debt?

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

[Thai at Heart]

Am i the only one that sees this 20bt as a debt added to a new admin? Which is illegal? They claimed it must be paid by May. It is still a loan since they are borrowing and must repay at a certain time.

And as a caretaker Gov is not permitted to incur any new debts wouldn't this still be thought of as a new debt?

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

He's scraped it from somewhere else.

[Tatsujin]

Am i the only one that sees this 20bt as a debt added to a new admin? Which is illegal? They claimed it must be paid by May. It is still a loan since they are borrowing and must repay at a certain time.

And as a caretaker Gov is not permitted to incur any new debts wouldn't this still be thought of as a new debt?

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

Not illegal, the EC approved it with conditions of repayment (which won't be met, giving more reasons to sue the Govt in the near future).

[ramrod711]

"The two ministries will do their best to hand as much money as possible to farmers during this caretaker government," Kittiratt said. "After that, this will be up to the next government."

Nice to see Kittiratt acknowledge that this government is finished. Yingluck is on the Campaign trail in the north, not for herself, but for the party. She was supposed to be in my village yesterday, roads were closed. tents erected, the OTOP building painted and scrubbed, she didn't show and all the festivities were called off. Sad to see all the red shirted folks wandering around with no place to go.

[ginjag]

He was ready to release it-------he was ready to sign it-------but it was NOT yet signed.

Suppose you can announce this every week. because of WHAT ??? forecast sell What, When, AND as much as possible will be paid to the farmers, meaning WHAT ??? 10 baht---10 million baht ??

So I owe my bank x amount due to be paid back 6 months ago, so I tell them I will pay as much as possible when I get it ???? idiots.

[lostinsurin]

Am i the only one that sees this 20bt as a debt added to a new admin? Which is illegal? They claimed it must be paid by May. It is still a loan since they are borrowing and must repay at a certain time.

And as a caretaker Gov is not permitted to incur any new debts wouldn't this still be thought of as a new debt?

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

Yes It would appear that you are one of the few that needs more info

or maybe pictures to help you understand information placed before you.

Feel better now?

happy birthday lostmebike

[JesseFrank]

"The two ministries will do their best to hand as much money as possible to farmers during this caretaker government," Kittiratt said. "After that, this will be up to the next government."

Nice to see Kittiratt acknowledge that this government is finished. Yingluck is on the Campaign trail in the north, not for herself, but for the party. She was supposed to be in my village yesterday, roads were closed. tents erected, the OTOP building painted and scrubbed, she didn't show and all the festivities were called off. Sad to see all the red shirted folks wandering around with no place to go.

the OTOP building painted and scrubbed,

I'm sure they even put some tenants inside for the occasion.

[Scamper]

" The government owes Bt119.5 billion to almost a million farmers for the pledging project that ended on February 28. "

This gives a sense of the enormity of this. The debt that the country has accrued due to the scheme also gives a sense of the enormity of this. And the corruption it entailed from an administrative standpoint also gives a sense to the enormity of it. And it is the latter that is the subject of the NACC investigation.

Edited March 15, 2014 by Scamper

[dcutman]

Kittiratt said yesterday that he had not yet signed off on the release of the money because of the disbursement process, but he was ready to sign it so farmers owed money before last December 9 could be paid.

The EC approved this loan on March 4. The white liar said the money would be distributed the following week. Now March 15, he is still sitting on this.

One has to start wondering is there even bt20 billion in the central fund. What other possible reason could he have to be dragging his feet on these payments?

[Robby nz]

Assuming he signs off this 20 billion it will mean, as I have said before, that any money generated from rice sales between now and May 31 will go to repaying the loan and not to the farmers.

The 20 billion is therefor all they can expect to get between now and May 31st, except for money raised by the BAAC through loans and donations.

It should also be true that if he signs the loan then it would make him directly responsible for repayment. Is he willing to wear that ?

Should also be noted that from 517k tons put up for auction they only managed to sell 180k tons, not a good result, add to that the futures sale was cancelled because there were only 3 bidders, it would seem few want the rice on offer.

And why should they when they can get it cheaper elsewhere, case in point, as reported elsewhere, of the farmer who killed himself because he was only offered 5,500 a ton for his crop.

[tim armstrong]

The loyalty of the farmers to this government is only driven by the same thing that they have been used to for generations - poverty. They have little choice but to 'believe' that they will get paid. For many the idea of using their land for something other than rice is either not feasible and /or too costly. As the spate of suicides show, many are very deeply in debt and have no way out. The 'smoke and mirrors' approach adopted by the government and its agencies will not work as sooner rather than later much of the rice stockpile will be worthless.

The amounts of money that have gone 'missing' are staggering. The rice pledging scheme was always the one issue that would destroy thailand's credibility and see a massive shift of investment into other Asean countries. But curiously neither the government or the other 51 opposition parties seem to realise this, and are more interested in public fist fights, private armies, secession, anarchy, and simply saving face. The current quagmire seems set to go on for a long time. I really do pity the farmers. If they were better educated and more aware of marketing, perhaps they might not have been so easily misled.

There is still no statement about when/if rice pledging will cease. The farmers would do better to co-operate a bit more with each other and sell directly overseas. But the days of thailand being the world's largest rice exporter are now gone.

[marko kok prong]

it seems every week they announce they are realising money to pay the farmers,yet it never seems to happen,i expect there will again be a delay,what a joke.

[soalbundy]

Am i the only one that sees this 20bt as a debt added to a new admin? Which is illegal? They claimed it must be paid by May. It is still a loan since they are borrowing and must repay at a certain time.

And as a caretaker Gov is not permitted to incur any new debts wouldn't this still be thought of as a new debt?

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

whats the problem? the farmers must be paid whether by this government or the next,if the next government doesn't have the money then they will have to make debt whats the difference, debt made by this government or the next.........lets get these poor farmers paid this hair splitting rubbish is getting on my nerves

[BLUENILE]

"....It said it had approved the sale of 180,000 tonnes after negotiating with winning bidders.

The ministry said it had also approved the additional sale of 500,000 tonnes to exporters ..."

"The money expected to be earned from the two lots is around Bt8.5 billion to Bt9 billion," Kittiratt said.

If 9 billion bht, that's 1320 (odd) baht per tonne. Sounds a bit high. And why, if the sale is finalised, is there not an exact amount?

"...11.62 million tonnes of paddy rice with the government worth Bt190.81 billion, ..."

1700 (odd) per tonne?

Think you should look for a new calculator

190,810,000,000 / 11,620,000 = 16,421

According to Reuters calculations, the rice was sold at an average 12,300 baht ($380) per tonne an not 16,421 baht which accumulate to a loss of over 100 Billion Baht at today’s market price. And this is just for this harvest.

The price of the milled rice stored in its stockpiles, estimated at around 24,000 baht per tonne. Today market price is around 10,000 baht a tonne, but no one would buy rice from the government at market prices to resell it at market prices. They would get nothing.

[jaidam]

Just an idle thought but the Wongsawats, good ole Somchai and his robust wife Yaowapa have been in total control of all customs and excise duties since the PTP assumed power. All import tax, all customs duties on any imported goods, alcohol and tobacco taxes, taxes on fuel etc etc. They must have trousered more billions than Gates and Buffett combined. Could they not help out these struggling farmers just a bit? It would be great PR, big Bobby A. could really go to town with it, also that Amanpour could gush over it. Everyone's a winner, (except those that have already killed themselves through desperation of course).

[Crushdepth]

"However, he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales."

Just more BS lies..

If its linked to sales and they haven't sold 20 billion then how can he be 'ready to sign off'?

[bigbamboo]

Just an idle thought but the Wongsawats, good ole Somchai and his robust wife Yaowapa have been in total control of all customs and excise duties since the PTP assumed power. All import tax, all customs duties on any imported goods, alcohol and tobacco taxes, taxes on fuel etc etc. They must have trousered more billions than Gates and Buffett combined. Could they not help out these struggling farmers just a bit? It would be great PR, big Bobby A. could really go to town with it, also that Amanpour could gush over it. Everyone's a winner, (except those that have already killed themselves through desperation of course).

And then when Kittikat's latest statement turns out be 'inoperative' as usual maybe the farmers will be too happy to notice.

[fstarbkk]

It always sounds so good until you get to the HOWEVER part:

"However, he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles."

Another false alarm, I guess!

[PepperMe]

However, he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales.

Come on you TVF guys.

I am surprised that none of you have spotted the elephant in the room yet..... look closer.

the disbursement of the Bt20 billion would be >>>>linked to the sale of rice<<<<< from government stockpiles.

Meaning, as they sell the rice over the next 2 months, the money earned will stimulate the release of that amount from the 20Bn loan funds.

Meaning there was never really any need for that loan..... right?

If the money coming in from rice sales is triggering the release from the fund, why not just directly release the money from that sale directly to the BAAC???

Makes no sense...... Unless of course, that 20Bn has already been moved elsewhere to fill 'holes' and none is actually intended for the farmers.... Now that makes sense.... doesn't it?

Why are questions not being asked?.... Why this convoluted method that does nothing to speed up disbursement??

Why not do the more logical thing and pay out all 20Bn now and channel the rice sale earnings into the repayments?... Isn't that what the idea of the loan was for in the first place?

They just can't help themselves can they.

[SICHONSTEVE]

"he said the disbursement of the Bt20 billion would be linked to the sale of rice from government stockpiles. The money has to be returned to the state's coffers by May 31, so the Commerce Ministry has to earn up to Bt10 billion a month from its rice sales." That could be a problem if they haven't got an iron clad contract in place now!

.....and where are (plus from whom) are the guarantees relating to this money being paid back??

If they fail to pay and shoulder the next government with debts then surely they have acted against the constitution yet again!!!

[GuestHouse]

My bookmarks are getting filled with links to PTP false promises (AKA Lies).

How and why the rice farmers put up with this is beyond me.

Its time they woke up and realised they've been ridden into poverty by the PTP.