Rice sector needs long-term development plan, a Thai seminar heard

[webfact]

RICE
Rice sector needs long-term development plan, a seminar heard
Petchanet Pratruangkrai
The Nation


A farmer at Narathiwas who grow premium rice that succeed to sale at price over than Bt15,000 per ton.

BANGKOK: -- Thailand should draw up a long-term policy on rice crops and trading management to avoid huge losses from short-term subsidies, while politicians should no longer be allowed to make rice policy a populist tool, a seminar heard yesterday.

At the "Thai Rice in Asean … Isn't It Reaching a Dead-End?" seminar, organised by Dhurakij Pundit University's faculty of economics, panellists agreed that Thailand needed a long-term strategy on rice rather than letting politicians form their own policies and create only short-term means of aiding farmers.

Wanlop Pichpongsa, vice president of the Thai Rice Exporters Association, said rice should no longer be a political tool to gain popularity during an election campaign.

"The country should set up a permanent organisation to manage rice policy, with no politicians involved; otherwise, the sector will not be developed. Politicians have always only thought about short-term policies to help farmers and gain popularity," he said.

He pointed out that the price of Thai rice had not increased as much as the government had expected, even though the pledging project was aimed at boosting prices. Farmers have not really benefited from the pledging scheme, having faced a combination of overdue payments and falling market prices, he added.

As no government has ever implemented long-term measures for rice development, such a strategy needs to be drawn up to ensure sustainable incomes for farmers, as well as competitiveness for Thai rice in the global market, he said.

Moreover, given upcoming seamless trade under the Asean Economic Community, the Thai rice sector faces a big challenge due to unstable prices from the subsidy project, coupled with lower development of rice quality, he stressed.

To ensure sustainable incomes and fair benefits for farmers, Wanlop said the government should still find some measures to help them in the short term, but it must also think more about long-term development.

It could create a system of direct payments to subsidise the cost of production, which would not negatively affect the sector or involve market intervention, he suggested.

He told the seminar that the price of Thai rice could increase slightly in the next few months because of increased demand in both the world and domestic markets, even though the caretaker government has accelerated the release of rice from its stockpiles.

As the price of Thai rice is only US$10-$20 per tonne higher than Vietnamese rice, the Kingdom should be able to compete with Vietnam in the global market, he said.

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The Philippines and Iraq will soon open bidding to import rice, and Thai rice could win the auctions if the proposed prices are not too high, he added.

Manatsanith Jirawat, a rice expert at the Commerce Ministry's Foreign Trade Department, accepted that the current government only had a plan to solve the problem of overdue pledging payments to farmers.

Although the government does have a long-term measure to promote rice development, the plan cannot be carried out as it is too busy solving the payment problem and releasing rice from the stockpiles, she said.

To ensure sustainable development of the industry, Thailand could cooperate more closely with other rice-exporting nations in Asean, such as Myanmar, Laos, Cambodia and Vietnam, she suggested.

While it would be quite difficult to collaborate on prices, as each country had its own agenda, Thailand as one of the world's leading rice exporters could cooperate with each of its Asean neighbours to promote rice cultivation and trading with other markets, she said.

Meanwhile, the Thai Rice Exporters Association reported that the country had exported some 1.4 million tonnes of rice during the first two months of the year - 39.5 per cent higher than in the same period last year.

Export value grew 12.5 per cent year on year, to Bt29.6 billion.

Last month's export volume is expected to have reached 700,000 tonnes.

As of April 2, the price of 5-per-cent Thai white rice was quoted at $394 a tonne, while Vietnamese rice was traded between $385 and $395 a tonne.


-- The Nation 2014-04-05

[NongKhaiKid]

A permanent organisation to manage rice policy with no politicians involved,

They'll be involved all right, maybe not up front, but they'll be involved and starting with the basics of a permanent organisation just who will appoint the officials, that's right, Politicians. Remember TIT.

[noitom]

This is preposterous tripe - since 1953 Thai rice farmers have been taxed remembering that Thailand was largely an agrarian economy,, and that tax money was used to build up infrastructure in and around Bangkok. This infrastructure was used to attract foreign investment and to line the pockets of Bangkok elite at the expense of farmers.

So let's get the facts straight in the news articles. This is public information. The Thai establishment has been exploiting the farmers for decades and they continue to do so. This is exactly the reason that demigods like Thaksin ascend to power. Before Thailand can hope for reform they have to have a vision and leadership accurately and factually articulating what Thailand was, is and hopes to become. Those leaders should get elected by the Thai people and activate their platforms that they campaigned on.

It's so simple when you get the facts straight instead of constantly manipulating for their own individual agendas and moving the goalposts. Thais are great at manipulating and shifting. It's some sort of game to them. And they speak at these seminars and write it up in the news as if the poor rice farmers are some sort of commodity like the rice without the same human rights as Bangkok elite and the academics sitting around puffing and blustering at these Thai seminars.

[antimedia]

Another worthless seminar, convened by worthless people and worthless to the farmer. Until all the Thais with deranged mentalities get it through their thick skulls that a piece of paper from a higher Thai and / or 3rd class western education establishment does not automatically make them competent academics or government hierarchy. For christ sake, require an accountancy degree just to work as a check out chick in this country.

[Gunna]

This is preposterous tripe - since 1953 Thai rice farmers have been taxed remembering that Thailand was largely an agrarian economy,, and that tax money was used to build up infrastructure in and around Bangkok. This infrastructure was used to attract foreign investment and to line the pockets of Bangkok elite at the expense of farmers.

So let's get the facts straight in the news articles. This is public information. The Thai establishment has been exploiting the farmers for decades and they continue to do so. This is exactly the reason that demigods like Thaksin ascend to power. Before Thailand can hope for reform they have to have a vision and leadership accurately and factually articulating what Thailand was, is and hopes to become. Those leaders should get elected by the Thai people and activate their platforms that they campaigned on.

It's so simple when you get the facts straight instead of constantly manipulating for their own individual agendas and moving the goalposts. Thais are great at manipulating and shifting. It's some sort of game to them. And they speak at these seminars and write it up in the news as if the poor rice farmers are some sort of commodity like the rice without the same human rights as Bangkok elite and the academics sitting around puffing and blustering at these Thai seminars.

As usual you are full of half truths. since 1953 exported rice was taxed, not the farmers directly,ie you should say the Rice exporting companies paid the tax after paying the farmers who have and still do, pay virtually no income tax nor sales tax.

[Dogmatix]

He pointed out that the price of Thai rice had not increased as much as the government had expected, even though the pledging project was aimed at boosting prices.

Mr Wanlop is a master of understatement.

[harryfrompattaya]

Simply put every year more rice is grown in the world but less is eatten

Did you ever hear about Diabetes and Rice

[WoopyDoo]

while politicians should no longer be allowed to make rice policy a populist tool,

That goes for all populist policies.... they should outlawed under the reforms.

This is a classic example of how Thaksin has used a populist policy to gain millions of votes at the expense of the taxpayer, and has cut the throats of the rice farmers for years to come. This industry will collapse in September when the new crop comes in.... you just watch this space.

The house of cards is about to collapse in extraordinary fashion.

[bigbamboo]

The first thing to do is to keep Thailand's biggest popularist tool as far away from the Thai rice industry as possible. If that happened before it wouldn't be wrecked now.

Edited April 5, 2014 by bigbamboo

[slapout]

Thai rice traders group? Is that similar to the ''used car sellers association, rice miller/middlemen, rubber ,fruit, etc, middlemen''?The similarity would seem to be purchase at wholesale price sell at retail, and try to/use other peoples money to do business?

[worgeordie]

So back to square one then,and the Government will be hoping

the electorate forget the massive losses,and the situation the country is in

at the moment.

regards Worgeordie

Edited April 5, 2014 by worgeordie

[kurtgruen]

The biggest problem with subsidizing rice prices is, that it leaves things open to too much corruption. The middle man (rice buyer) will buy a bit of rice from the farmers at a high, Government subsidized price, then they will take that same rice and buy it again and again, cashing on on the high subsidies over and over again, claiming cheap sales or loss to fires, rats, etc., while collecting more money from the Government.

This is not what Thailand needs.

I would rather see a system like Mexico used to have, where the basic, retail food prices are fixed for Thai people so they can purchase rice, soya beans and some sort of fat, (like lard or oil) cheap. (carbohydrates, protein and fat) That way, They will always have cheap food to feed their families, no matter how poor they are. Of course, free medical and cheap access to water and power, for the poor is important, too, for a system like that to work.

[tim armstrong]

If the leaders of the rice industry were really smart they would be trying very hard to establish a co-operative agreement to sell rice WITH Vietnam not compete with them. Vietnam actually produces more rice than Thailand, and the production costs and export price are similar in both countries. Together they could have a significant effect on the international market, especially at the high quality end. For sure, politicians have no business being involved and about half the middlemen need to be removed. But surely there are some bright, better educated young farmers in Thailand who can see this option. In a Thailand V Vietnam marketing battle - it would be a no contest as Thais are so far behind in education and awareness of international trade practices.

[Thai at Heart]

There is one already.

The Thai Rice Exporters Association, and everything was going just fine until this govt messed with everything. I mean, Thais were just falling over themselves to grow rice and become millionaires instantly through the long term development of the exporters association.

[janpharma]

Let's get realistic; surrounding countries offer the same "hom mali" quality at half price (i.e. 6500 to 7500 Thb/Ton). If Thai don't adapt the won't have any export soon.

[WitawatWatawit]

Beautiful picture for that story.

One of the main problems is that nothing, but nothing, is unaffected by politics. Organisation is the big barrier here. For sure, there is enough collective intelligence around to direct the country's agrarian policies. But who is organising it? I would suggest more empowerment for farmer's groups - let them have a much stronger input into rural policies. A natural leader for this would be Supachai Panitchpakdi.

[Thai at Heart]

while politicians should no longer be allowed to make rice policy a populist tool,

That goes for all populist policies.... they should outlawed under the reforms.

This is a classic example of how Thaksin has used a populist policy to gain millions of votes at the expense of the taxpayer, and has cut the throats of the rice farmers for years to come. This industry will collapse in September when the new crop comes in.... you just watch this space.

The house of cards is about to collapse in extraordinary fashion.

Define populist. Outlaw populist things. Free school uniforms? Child tax benefit? Populist is a silly word like social. It stigmatises without thinking.

[caughtintheact]

There is always a dilemma when trying to force higher prices for farmers. The more the farmers are paid, the more expensive the products become for retail consumers, which includes the poor as well as everyone else. Billions of people in Asia and elsewhere eat rice as a staple, so they will get penalized when there is any kind of upward price manipulation. The "cooperation" advocated by some is really collusion, and if two private sector companies collude to control prices (by reducing supply, for instance), in many places it is illegal. Sadly, the people in the article are talking about central planning, which does not work well. Rice pledging schemes are also central planning, and that does not seem to be very beneficial to farmers or other consumers. Even if all the farmers finally get paid what they were promised. It does not mean that they will be better off than before. In fact many will be worse off because of higher debts etc.

Edited April 6, 2014 by caughtintheact

[bangon04]

Surely subsistence farming is the very essence of Thainess. It is only when the peasants try to get above their station and try to get a bigger share of the profits from the Chinese millers and middlemen that things start to go wrong.

Next they will be learning to do arithmetic so they can challenge the middlemen about their payments... disgraceful abandonment of their culture.

[Thai at Heart]

Surely subsistence farming is the very essence of Thainess. It is only when the peasants try to get above their station and try to get a bigger share of the profits from the Chinese millers and middlemen that things start to go wrong.

Next they will be learning to do arithmetic so they can challenge the middlemen about their payments... disgraceful abandonment of their culture.

Of course it is. Little has ever been done practically to make sure that even the buying process is clean.

Even the moisture measurements are made by the buyers, not an independent lab.

[gabruce]

I love the statement that the government has a long term rice program/policy but cannot pursue because of the short term rice payment problems. Sorry, I don't believe they have any long term plan, other than perhaps trying to starve all of the small farmers so the Pheu Thai ammart can buy up all their land using the funds that have leaked out of the current rice programme.

[allan michaud]

A few sensible comments but also more dumb ones. Why seek to control regional prices (as did Thaksin with the current scam) it's not going to work?

Thailand's rice farming techniques are clearly inferior to most other rice producing countries. Thailand's 2.6 tonnes per hectare is dramatically lower than Vietnam's 6 tonnes, China's 6.5 tonnes (China has the current record of 14.8) and below Cambodia's 2.8 tonnes, so maybe they should be talking AGRICULTURAL EDUCATION. It seems realistic that they should be able to increase productivity to nearer 4 tons in just a few years, with soil remediation and the intelligent use of man made fertilisers.

A quick look at fertiliser stats was interesting http://data.worldbank.org/indicator/AG.CON.FERT.ZS/countries I noted Thailand's consumption continues to rise dramatically while Vietnam (noted for its massive use of chemicals) has reduced it's consumption equally dramatically. That would seem to indicate that the Vietnamese are now understanding that you cannot simply throw ever more chemicals at crops and are cleaning up their act... while Thailand is simply continuing to make the mistakes others have already made.

STUPID IS AS STUPID DOES!

[allan michaud]

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

while politicians should no longer be allowed to make rice policy a populist tool,

That goes for all populist policies.... they should outlawed under the reforms.

This is a classic example of how Thaksin has used a populist policy to gain millions of votes at the expense of the taxpayer, and has cut the throats of the rice farmers for years to come. This industry will collapse in September when the new crop comes in.... you just watch this space.

The house of cards is about to collapse in extraordinary fashion.

Define populist. Outlaw populist things. Free school uniforms? Child tax benefit? Populist is a silly word like social. It stigmatises without thinking.

Dito.

[SICHONSTEVE]

Simply put every year more rice is grown in the world but less is eatten

Did you ever hear about Diabetes and Rice

Brown rice and basmati rice are OK - it is more about bread, cooking oils (unless coconut or olive) and processed foods, that diabetes is rife now!!

[northernjohn]

This is preposterous tripe - since 1953 Thai rice farmers have been taxed remembering that Thailand was largely an agrarian economy,, and that tax money was used to build up infrastructure in and around Bangkok. This infrastructure was used to attract foreign investment and to line the pockets of Bangkok elite at the expense of farmers.

So let's get the facts straight in the news articles. This is public information. The Thai establishment has been exploiting the farmers for decades and they continue to do so. This is exactly the reason that demigods like Thaksin ascend to power. Before Thailand can hope for reform they have to have a vision and leadership accurately and factually articulating what Thailand was, is and hopes to become. Those leaders should get elected by the Thai people and activate their platforms that they campaigned on.

It's so simple when you get the facts straight instead of constantly manipulating for their own individual agendas and moving the goalposts. Thais are great at manipulating and shifting. It's some sort of game to them. And they speak at these seminars and write it up in the news as if the poor rice farmers are some sort of commodity like the rice without the same human rights as Bangkok elite and the academics sitting around puffing and blustering at these Thai seminars.

Well you have said a lot here.

How ever you say that

So let's get the facts straight in the news articles. This is public information. The Thai establishment has been exploiting the farmers for decades and they continue to do so. This is exactly the reason that demigods like Thaksin ascend to power. Before Thailand can hope for reform they have to have a vision and leadership accurately and factually articulating what Thailand was, is and hopes to become. Those leaders should get elected by the Thai people and activate their platforms that they campaigned on.

In every election since 2,000 those were the people that elected the leaders. The current leadership has acted on what they campaigned for and look at the results.

In my opinion the government should only involve them selves to the point of showing the farmers how to be more productive and grow a better quality crop. Yes this would involve subsidies but not out rite free money such as the current scam was doing.

Another thing and I have no answer or suggestions for it but the ownership falling into the hands off large farmers and being leased out at prices that do not reflect the true value of the land and do nothing but keep the small farmer poor should be looked into. How much of this type land was attained by the rich friends of the government?

Edited April 6, 2014 by northernjohn

[northernjohn]

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

while politicians should no longer be allowed to make rice policy a populist tool,

That goes for all populist policies.... they should outlawed under the reforms.

This is a classic example of how Thaksin has used a populist policy to gain millions of votes at the expense of the taxpayer, and has cut the throats of the rice farmers for years to come. This industry will collapse in September when the new crop comes in.... you just watch this space.

The house of cards is about to collapse in extraordinary fashion.

Define populist. Outlaw populist things. Free school uniforms? Child tax benefit? Populist is a silly word like social. It stigmatises without thinking.

Dito.

Have no kids but I was under the understanding that the parents had to buy the uniforms.

Not having kids one looses track of the smaller details. Were the uniforms not made free under Abhist? Or am I mistaken?

I do how ever keep track of the larger details like the education system here is a poor one backed up by the move along so they don't loose face and at the higher education how much money some pay for the paper but not the education.

[Thai at Heart]

This is preposterous tripe - since 1953 Thai rice farmers have been taxed remembering that Thailand was largely an agrarian economy,, and that tax money was used to build up infrastructure in and around Bangkok. This infrastructure was used to attract foreign investment and to line the pockets of Bangkok elite at the expense of farmers.

So let's get the facts straight in the news articles. This is public information. The Thai establishment has been exploiting the farmers for decades and they continue to do so. This is exactly the reason that demigods like Thaksin ascend to power. Before Thailand can hope for reform they have to have a vision and leadership accurately and factually articulating what Thailand was, is and hopes to become. Those leaders should get elected by the Thai people and activate their platforms that they campaigned on.

It's so simple when you get the facts straight instead of constantly manipulating for their own individual agendas and moving the goalposts. Thais are great at manipulating and shifting. It's some sort of game to them. And they speak at these seminars and write it up in the news as if the poor rice farmers are some sort of commodity like the rice without the same human rights as Bangkok elite and the academics sitting around puffing and blustering at these Thai seminars.

Well you have said a lot here.

How ever you say that

So let's get the facts straight in the news articles. This is public information. The Thai establishment has been exploiting the farmers for decades and they continue to do so. This is exactly the reason that demigods like Thaksin ascend to power. Before Thailand can hope for reform they have to have a vision and leadership accurately and factually articulating what Thailand was, is and hopes to become. Those leaders should get elected by the Thai people and activate their platforms that they campaigned on.

In every election since 2,000 those were the people that elected the leaders. The current leadership has acted on what they campaigned for and look at the results.

In my opinion the government should only involve them selves to the point of showing the farmers how to be more productive and grow a better quality crop. Yes this would involve subsidies but not out rite free money such as the current scam was doing.

Another thing and I have no answer or suggestions for it but the ownership falling into the hands off large farmers and being leased out at prices that do not reflect the true value of the land and do nothing but keep the small farmer poor should be looked into. How much of this type land was attained by the rich friends of the government?

Its hard to talk about land leasing without touching a taboo subject.

The current system could be used to encourage what u talk aboutfor quality

It would just take organisation and effort.

Yawn...

[Thai at Heart]

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

while politicians should no longer be allowed to make rice policy a populist tool,

That goes for all populist policies.... they should outlawed under the reforms.

This is a classic example of how Thaksin has used a populist policy to gain millions of votes at the expense of the taxpayer, and has cut the throats of the rice farmers for years to come. This industry will collapse in September when the new crop comes in.... you just watch this space.

The house of cards is about to collapse in extraordinary fashion.

Define populist. Outlaw populist things. Free school uniforms? Child tax benefit? Populist is a silly word like social. It stigmatises without thinking.

Dito.

Have no kids but I was under the understanding that the parents had to buy the uniforms.

Not having kids one looses track of the smaller details. Were the uniforms not made free under Abhist? Or am I mistaken?

I do how ever keep track of the larger details like the education system here is a poor one backed up by the move along so they don't loose face and at the higher education how much money some pay for the paper but not the education.

I think they were , then they weren't. Currently not free.

This stigma of populist is silly. It prevents discussion and is too blunt. There are policies all over the place that redistribute money. Not all are a communist conspiracy or going to kill the country.

I note it is usually a guy from Bangkok with a personal wealth in the hundreds of millions of baht bemoaning populism. Followed by a load of plastic hand clappers held by women being ferried to the protests in their cars.

This country needs a bit of social help for the countryside to help it keep up. Thailand's future believe it or not is being born out there every day....

[belg]

you order a million tonn as a country, and pay 20$ more per tonn for thai rice, that is 20.000.000 US$ more... now how could that affect the country, as the rice is same or lower quality (many years old + pesticides)

[Old Man River]

He pointed out that the price of Thai rice had not increased as much as the government had expected, even though the pledging project was aimed at boosting prices.

Mr Wanlop is a master of understatement.

Cornering a market on commodities has been tried before. Normally, it is a failure, and then smart people cut bait and run.YL's government tried, failed, and then, instead of admitting failure, tried to hide it. It is a global commodity. You can't hide it.

This is completely separate from alleged corruption. That is up to the NACC and the Senate to deliberate over. My comments have nothing to do with corruption, but rather payment under promised populist policies. Once failing, and hiding it, it appears that the current caretaker government, prior to the protests and becoming a caretaker government, never budgeted to pay all the farmers. Some are, apparently, owed since 2011!

After promising to pay farmers under the main populist policy, how can YL's government default and expect prudent people, other than some on TV, to not understand that they never meant to pay 100% of the farmers they promised to pay?

Sent from my iPad using Thaivisa Connect Thailand