Thai Govt may tap budget again to pay farmers

[webfact]

RICE PLEDGING
Govt may tap budget again to pay farmers
The Nation


Yanyong Phuangrach

The government says it will soon discuss borrowing more money from its central budget to pay farmers under the rice-pledging scheme.

BANGKOK: -- Deputy Commerce Minister Yanyong Phuangrach said he would discuss with Niwattumrong Boonsongpaisarn, the deputy prime minister and commerce minister, a proposal from the Thai Farmers and Agriculturalists Association for the government to request the Election Committee to approval additional borrowings of Bt40 billion from the central budget.

"The association, together with rice farmer representatives from 30 provinces, has submitted a letter to me," Yanyong said.

"I have to discuss this issue with the commerce minister first and I may have to invite representatives from related parties to join the discussion to finalise the plan for more borrowings from the central budget.

"This could be done without the input of the National Rice Policy Committee. It could be forwarded to the Cabinet for consideration."

Under the proposal, Yanyong said the Bt40-billion borrowings may not be made in a lump sum, but could be made in two tranches of Bt20-billion each.

He believed the Ministry of Commerce would be able to make all of the repayments, as the government had the ability to sell stocked rice.

It is expected that the first Bt20-billion tranche, which the EC approved early last month, will be repaid before the May 31 deadline.

"Repayment to the central budget is anticipated beforehand," he said.

"Recently, about Bt10 billion in excess was paid. This shows the government will not miss its repayment obligation. It would likely use borrowings from the budget to pay farmers.

"The original plan was for government borrowings to be used to pay farmers, but it was suspended given the caretaker government's situation.

"The plan was changed to find money to pay farmers and sell rice at the same time."

The Ministry of Commerce said Vichian Phuanglamjiak, president of the Thai Farmers and Agriculturalists Association, had submitted the letter to Yanyong urging the government to continue with the rice-pledging scheme and consider requesting the extra Bt40 billion to help cover the Bt95 billion payment due to farmers.

Meanwhile, Thailand will seek new and less price-competitive markets to export rice after an opportunity to export 800,000 tonnes of rice to the Philippines was stymied by Vietnam offering a lower price.

According to the Department of Foreign Trade's director-general, Surasak Riangkrul, Vietnam offered the Philippines at an auction held on Tuesday a CIF (cost, insurance, freight) export price of US$440 per tonne for 15 per cent white rice, which is likely to kill Thailand's chance of exporting 800,000 tonnes to the Philippines at $475 per tonne CIF price. It is unlikely that Thailand can secure the bid as the price offered by Thailand is higher because 2-3 private Thai rice exporters proposed 5 per cent higher quality white rice. Vietnam will announce the auction result on April 23.

In any case, Thailand will have seek other markets to export better quality, higher-priced Thai rice to avoid a price war with Vietnamese rice and to preserve the quality of Thai rice. Meanwhile, Malaysia is currently negotiating to import several hundreds of tonnes of Thai rice.

As for the distribution of rice stocks from state warehouses, 520,000 tonnes of rice will be allocated for general auction and for direct export sales, in addition to another 60,000 tonnes from the Suphan Buri rice auction, which will have to be approved later by Niwatthamrong, Surasak said.

According to the Thai Rice Exporters Association, on FOB (free-on-board) terms, the export price of Thai rice is $380/tonne. Vietnam 's FOB export price is unknown as their rice production cost is not known. It is not unusual for Vietnam to offer a very low price, as they really want to win the Philippines export contract.

The Commerce Ministry reported that the FOB export price of 15 per cent Thai rice was $377/tonne compared to Vietnam's $365/tonne, a difference of $10-$12 per tonne.


-- The Nation 2014-04-18

[khwaibah]

If it looks like BULL SHYT smells like BULL SHYT then it must be the interim government talking BULL SHYT.

[WoopyDoo]

So only 10 Bn was paid to the farmers and they are holding 10 Bn back in case they need it to meet the repayment deadline.

Also what they are saying is that they are actually struggling to sell the rice.

Now they want to borrow an additional 40 Bn?........ Yep, of course the EC will allow this.

Just wait till September when the real fallout from this sham of a scam starts to rear its ugly head and the rice farmers realise that there will be no subsidy available and they can't sell their new rice for a profit because of the massive stockpiles being pushed onto the market.

Oh the millers will prefer the fresher rice, but would have to be sold to them for much less than the government are willing to sell for and yes..... guess who is in full control of the entire industry?.... the government.

4.3 million rice farming families will soon wake up to exactly what they voted for 3 years ago.... Their own destruction.

I can't really say I have that much sympathy... You make your bed.

[MaxLee]

I thought the farmers are gonna get paid by this week,... or not???

[apetley]

FIL and the guy who rents wifeys paddy have now been waiting six months for their payout.

[chainarong]

This whole sarga has become one big YAWN , the left hand has no idea what the right hand is doing, I have a pretty good idea, but I will let all at TV guess,

[timewilltell]

If the PTP are saying they want to borrow money and can pay it back since they have shown they can sell the rice, by their example, then why not just sell the rice and avoid borrowing anything.

Of course the answer is obvious - they can't sell the rice, can't pay the farmers and can't show the facts of the scam because that is exactly what it was - a corrupt scam to benefit the personal bank accounts of those involved.

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[Mentors]

I thought the farmers are gonna get paid by this week,... or not???

it was a late 1st April joke. Or maybe just a white lie...

Edited April 18, 2014 by Mentors

[JesseFrank]

Why they have to borrow more ?

I read news reports every week about how well the auctions go and how many tonnes they sell at above market prices at each auction. And then I don't mention yet the claim that Thailand has regained its position as worlds number one exporter in the first 3 months of this year.

Should be plenty of money floating around by now...................................................if those news-reports are not full of bull of course.

[thesetat2013]

So their deals to sell to thr Phills failed because Vietnam won the bid and who is to say this will not happen again. The Gov is still left owing the farmers and using what little rice money they get to pay the loan due in may. Yet they want to borrow more money because they cant sell enough rice to pay the loan and the farmers. Hard to believe they still claim this is a successful scheme and are recommending its continuation. Haven't they a phrase to compare with beating a dead horse?

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[BillyBobThai]

The government will pay the farmers, 10% of what is owed, each year for the next 10 years, minus12% intrest.

[slapout]

A first year law student could find enough charges to file on this scam to keep the court system backed up for years. The caretaker Pm, Finance, Commerce, Interoir ministries, are involved with the RTP, Ag bank, rice traders, millers, owners of storage facilities, land owners, transport companies, and some of the farmers themselves.

The lot of them have created a system which was broken from the start and the next generation, possibly two, will suffer and pay for it, as well as the monies stolen and passed down to the corrupt people, their children/grandchildren.

Edited April 18, 2014 by slapout

[Tatsujin]

Just how much of the monies borrowed have been paid back yet by all the large rice sales made so far?

[klauskunkel]

If anyone has learned anything from this, it would be:

1. don't trust the Thai government to fulfill present terms, promises or contracts

then follows:

2. don't believe the Thai government to fulfill future terms, promises or contracts

then follows:

3. sit back and watch the Thai government squirm in all directions

[moonao]

The farmers know the yellow shirts are blocking payments... come election time, the farmers will help to vote a PTP backed party into power... again.

[Dogmatix]

So only 10 Bn was paid to the farmers and they are holding 10 Bn back in case they need it to meet the repayment deadline.

Also what they are saying is that they are actually struggling to sell the rice.

Now they want to borrow an additional 40 Bn?........ Yep, of course the EC will allow this.

Just wait till September when the real fallout from this sham of a scam starts to rear its ugly head and the rice farmers realise that there will be no subsidy available and they can't sell their new rice for a profit because of the massive stockpiles being pushed onto the market.

Oh the millers will prefer the fresher rice, but would have to be sold to them for much less than the government are willing to sell for and yes..... guess who is in full control of the entire industry?.... the government.

4.3 million rice farming families will soon wake up to exactly what they voted for 3 years ago.... Their own destruction.

I can't really say I have that much sympathy... You make your bed.

The EC approved the first B20bn on the grounds that the govt promised to repay it from rice sales by 31 May and that the govt should still be in office as a caretaker at that point. The rice sales are not happening and it the chances of the caretakers still being in office on 31 May now look less good.

[issanaus]

So their deals to sell to thr Phills failed because Vietnam won the bid and who is to say this will not happen again. The Gov is still left owing the farmers and using what little rice money they get to pay the loan due in may. Yet they want to borrow more money because they cant sell enough rice to pay the loan and the farmers. Hard to believe they still claim this is a successful scheme and are recommending its continuation. Haven't they a phrase to compare with beating a dead horse?

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There is a history of rice sale to the Phills failing - basically their government wants to buy 15% broken rice to keep costs down and maintain food security to ensure political stability in their country.

Thailand wants to sell 5% broken rice (which is probably stale or worse) at a premium to world commodity prices.

Thailand is keen to sell this rice to them because the normally buyers for that rice grade really don't want shit from the stock pile

Thailand does not understand the market that they want to sell in is different to what they believe the market should be

Thailand is talking - not listening to the potential customers.

When you don't understand your market and don't listen to you customers it is hard to succeed in business

Incompetence and arrogance - the hallmark of the PTP

[chainarong]

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The farmers know the yellow shirts are blocking payments... come election time, the farmers will help to vote a PTP backed party into power... again.

That's fine , they wont get paid at all then , so who cares troll

[Baerboxer]

The farmers know the yellow shirts are blocking payments... come election time, the farmers will help to vote a PTP backed party into power... again.

The farmers know the promises and vows to pay them by PTP are just worthless lies aimed at buying more time.

The brighter ones can see through the propaganda, intimidation and bribery to vote PTP. Don't count your chickens before they've hatched.

[issanaus]

The farmers know the yellow shirts are blocking payments... come election time, the farmers will help to vote a PTP backed party into power... again.

The farmers know the promises and vows to pay them by PTP are just worthless lies aimed at buying more time.

The brighter ones can see through the propaganda, intimidation and bribery to vote PTP. Don't count your chickens before they've hatched.

If the farmers had been paid as often as they have been promised payments by the PTP, they would be the new rich in Thailand

[bigbamboo]

I don't understand this. What happened to all the rice sales Kittikat and co. keep telling us about? Surely they must have raised some cash or did it all go somewhere else?

Or was he lying yet again?

[Scamper]

" Meanwhile, Thailand will seek new and less price-competitive markets to export rice after an opportunity to export 800,000 tonnes of rice to the Philippines was stymied by Vietnam offering a lower price. "

What less price-competitive markets is he referring to ? On this planet ?

Being outbid by Vietnam apparently means that Thai rice is actually 5 % " higher quality " and therefore naturally costs more - the kind of quality one suspects that - like wine - only accumulates over time. Maybe after another two years in the rice silos he can deem the rice 10 % higher quality.

Pheu Thai is back to the same narrative - all will be approved of by the cabinet - just as soon as they're back from dining in Hong Kong. The cabinet can issue any directive it wants. Why only 40 billion baht ? Why not 4 trillion baht ? Of course, it has to go through parliamentary committees and the parliamentary process. Whoops - no parliament. In that case it has to go through the EC. Whoops - Phue Thai doesn't talk to the EC. In that case they have to try to arrange a bank loan. Whoops - that nearly bankrupt GBS. In that case, they need to arrange another rice auction on some distant planet where they will gladly pay more for simply better, higher quality, properly aged rice. Yes, that's it. That will do it.

[dutchisaan]

The farmers know the yellow shirts are blocking payments... come election time, the farmers will help to vote a PTP backed party into power... again.

How can the yellow shirts block payment al the time? Isn't it the government is in charge of the money in the coffins? Or is it possible that those coffins are empty, just as there many promisses to pay the farmers.

As for your remark that the farmers will vote the ptt back in, well we have to see about this, don't we. But if I was you I wouldn't put any money on that. You live, in the past my friend. Too much has happened the last six months. The eyes of the people in Thailand has been opened and they are less and less afraid to stand up against corruption.

Ofcourse you will be right that some farmers will vote for the ptt, but don't count on a majority.

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[how241]

I hope they get paid. Can you imagine NOT getting paid for just a long time.

[Cricketnut]

And has anyone seen the broken rice being sold to the Philippines. I have and its disgusting. The P/ppines government should be ashamed...

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[Mosha]

The farmers know the yellow shirts are blocking payments... come election time, the farmers will help to vote a PTP backed party into power... again.

Absolute BS

Edited April 18, 2014 by Mosha

[khwaibah]

I hope they get paid. Can you imagine NOT getting paid for just a long time.

YES !

[rubl]

not directly related to the topic I'm afraid, but i'm just wondering about the rental fees for areable land. When the rice price pledging scheme was soon to be introduced rental prices for land doubled in most cases. Also other things like equipment rental, fertiliser, etc., etc. increased in price as all would be able to share from that big pie promised by the government (and paid for by supportive taxpayers )

I guess I'm really a bit naive if I would start thinking prices will drop overall as well?

[aimbc]

Going by the record of white lies by this government, I will bet that the rice quality is bad and can't compete. So it would be very easy to best the government

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[Crushdepth]

Aliens may drop gold bricks on farmers doorsteps. But probably not.

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