Farmer kills himself over debts from unpaid rice money: Thai govt's rice-pledging scheme

[issanaus]

The ultimate poisoned chalice for the next Thai government, of whatever complexion.

Damned if they don't abolish the publicly unpopular rice scheme - and damned by the rice farmers if

they do.

No wonder that nutless wonder Abhisit is sitting on the fence!

So Abhisit is a coward because he's not thrilled with the prospect of tidying up the PTP's mess?

Obviously, whichever government comes next will get a lot of negative public opinion, and won't reap the benefits of fixing silly policies and projects. I'm guessing this is one reason the PDRC and the Democrat Party are after an appointed government - not only because it is doubtful they'll win otherwise, but also because it won't be directly associated with them for the next round.

The PTP's way out is to either form the next government and continue the same policies, while hiding losses and minimizing damages.

Ideally, the next government (elected, appointed or otherwise) will see to it that outstanding debts are paid, then can the lot of populist policies and schemes, accept inevitable losses and move on. Such steps are surely going to hurt, and unlikely that they will be fully carried out.

The PTP have already started the process of the fallout from abandoning the Rice Pledging Scheme (RPS) at least in the existing format. Last year they tried to reduce the level of the pledge payments and soon felt the political heat from that. If you think about the very heart of what PTP considers to be their support base we see areas such as much of Isaan. So the question is how do you stop your supporter in rice growing areas from revolting when you change or abandon the scheme? One answer is to stop the price of rice being fundamental to their lives.

If you think about statements that the PTP administration have made in recent times they have referred to the area of land that is being used to grow rice and that much of it is unsuitable for the purpose. These areas have been SLATED for change of use - growing alternatives crops. In fact what they are proposing area that areas should become virtual monocultures.

If we look at the areas that are the least suitable for growing rice from an economic/monetary point of view it is large sections of Isaan......From a cultural and independence point of view growing rice is very important to these people.

Lets say that they designate an area for growing sugar can as the proposed alternative crop then there would be the need for additional mill due to capacity and the need to quickly transport the harvest due to the drop that occurs in the sugar content. I am not sure would those opportunists would go to but they could provide valuable reward to influential supporters

[belg]

why kill yourself over some rice? they had enough to eat right ? mental problems me seems

[Ricardo]

why kill yourself over some rice? they had enough to eat right ? mental problems me seems

From the OP :-

"He said his son received two vouchers from the rice sale with payment due in December last year.

But until now, his son still was not paid."

and "He said his son has no choice but to pledge the two vouchers as collateral to borrow 100,000 baht to pay for the land rents of 40,000 baht, and the rest as cost to buy grains to do the new planting, and as rent for the plough.

However drought has damaged his new crop while the money he borrowed also was not yet received."

So he was forced by the government's non-payment into further debt, to try to keep keep his farm going.

Can you not understand the stress involved in trying to run a business, where your major customer has defaulted on its payment, and you have no idea when (if ever) you might get paid, or whether that would in-turn be sufficient to repay the new loan and interest ?

We're not told whether he borrowed from the BAAC or loan-sharks, but either way it appears a tad harsh, to write it off as "mental problems".

[issanaus]

why kill yourself over some rice? they had enough to eat right ? mental problems me seems

From the OP :-

"He said his son received two vouchers from the rice sale with payment due in December last year.

But until now, his son still was not paid."

and "He said his son has no choice but to pledge the two vouchers as collateral to borrow 100,000 baht to pay for the land rents of 40,000 baht, and the rest as cost to buy grains to do the new planting, and as rent for the plough.

However drought has damaged his new crop while the money he borrowed also was not yet received."

So he was forced by the government's non-payment into further debt, to try to keep keep his farm going.

Can you not understand the stress involved in trying to run a business, where your major customer has defaulted on its payment, and you have no idea when (if ever) you might get paid, or whether that would in-turn be sufficient to repay the new loan and interest ?

We're not told whether he borrowed from the BAAC or loan-sharks, but either way it appears a tad harsh, to write it off as "mental problems".

Edit required use to seat to keyboard interface error

The assumption that can be drawn from the little information provided was that this was a poor farmer with little in the way of assets beyond the payment that was due from the rice pledge.

Killing oneself is never an answer but when people become stressed ( I would guess clinically depressed reason does go out of the window)

As his land was rented it is probable that he had no assets to secure against a loan beyond the pledge voucher. So it is most likely that the loan was from a loan shark. These people often employ the village thugs to encourage payments. The standard rate that loan sharks charge is about 10% a month compounded monthly. In such a situation it would not take too long for the amount that had to be repaid to be equal to the "value" of the rice voucher. We are not told in this article but we know from press releases how often his hopes would have been raised only to be dashed again by the false promises of the government.

Normally people in this position could get some help from relatives but the rice pledging scheme has devastated many in some of the communities so the usual help is not available. A Thai man living with his parent probably had undertaken to look after them , The same undertaking would have been made to the wife. All in all he would have been suffering a lot of shame and loss of face because of what had happened.

Loss of his crop to the drought would just have been the nail in his coffin.

Now his family have to deal with the fall out including the cost of burial, destruction of the business and the loan sharks will still be looking for their money

Edited May 3, 2014 by issanaus