Thai rice pledging project draws to a close

[webfact]

Rice pledging project draws to a close

BANGKOK, 17 June 2014, (NNT) - Several offices of the Bank for Agriculture and Agricultural Cooperatives (BAAC) have started terminating their rice support projects, as most of farmers participating in the scheme have been paid.

Most of the rice farmers in Ang Thong have started withdrawing their payments from the BAAC to fund their next rice planting season, after the bank transferred the funds into their accounts on June 12.

The BAAC's Ang Thong branch has so far paid 92% percent of the amount owed to farmers, amounting to 1.451 billion baht, according to the BAAC officials, adding that the remaining debts of 126 million baht would be paid by tomorrow.

Meanwhile, the bank's Udonthani branch has announced the termination of its rice pledging scheme, saying it has since June 12th paid all of the 13,470 farmers for the 20,897 warehouse receipts submitted by them.

The province will from now on focus on promoting traditional organic farming in order to reduce production costs and raise farmers' income, in line with the National Council for Peace and Order’s policies.


-- NNT 2014-06-17

[NeverSure]

Draws to a close. Dandy.

Now where is that 20 million tons of rice, and who's going to pay back the approximately 1 trillion baht which is owed to the banks so far?

I wish I could draw my business to a close in that manner.

I need more Thainess.

Lessee. 3% interest on 1 tril baht is 30 billion baht per year. If you've drawn it to a close, could I have that part?

Edited June 17, 2014 by NeverSure

[NongKhaiKid]

I think most of the rice farmers have been paid their outstanding pledge money but what now ?

Their association chairman has already said the NCPO ' MUST ' come up with an alternative support scheme suggesting they have settled into a mindset of welfare or bail outs.

Incidentally it's being reported that soldiers are guarding many rice warehouses in the North East pending a full check on stocks.

I would think there will be many worried people who were previously involved with the scheme. An overseas trip anyone unless those pesky soldiers have us on a stop list..

[chainarong]

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Draws to a close. Dandy.

Now where is that 20 million tons of rice, and who's going to pay back the approximately 1 trillion baht which is owed to the banks so far?

I wish I could draw my business to a close in that manner.

I need more Thainess.

Lessee. 3% interest on 1 tril baht is 30 billion baht per year. If you've drawn it to a close, could I have that part?

The hand outs have now come to a close, after waiting since October, with promise after promise from the PTP ,as you rightly point out ,the repayments have to come , from some-where , from where, Christ only knows.

[Chao Lao Beach]

Biz farming 101 is to grow a profitable product isn't ?

[ChrisY1]

The payments have been made now......but the handouts will likely continue.......

[1plumber]

Draws to a close. Dandy.

Now where is that 20 million tons of rice, and who's going to pay back the approximately 1 trillion baht which is owed to the banks so far?

I wish I could draw my business to a close in that manner.

I need more Thainess.

Lessee. 3% interest on 1 tril baht is 30 billion baht per year. If you've drawn it to a close, could I have that part?

Hope this will become THE model for why govt's should refrain from market manipulation attempts as well as from giving things to buy votes.

Edited June 17, 2014 by 1plumber

[boomerangutang]

To her credit, Ms Yingluck tried to close down the project last year, but was unable, because farmers threatened to converge on Bkk in their tractors.

Here are some things gov't (if Thailand had a gov't) should/could do for farmers:

>>> facilitate dealings between farmers and millers. It's too easy for millers (mostly Chinese-Thai hi-so) to take advantage of hardscrabble farmers.

>>> try to steer farmers toward better annual crops, like hemp

>>> Also encourage farmers to put part of their property aside for long-term crops, like lumber trees, fuits, nuts. Go in to any common market in Thailand, and count how many tree-nuts are on sale. Chances are your count will be zero. If you're lucky, you may find some cashews for sale. There could be brazil nuts or a variation (which I grow)

>>> Avocados grow well in Thailand, as well as many other useful crops, but Thai authorities want rice farmers to grow only rice. Don't even consider any other crop.

[1plumber]

To her credit, Ms Yingluck tried to close down the project last year, but was unable, because farmers threatened to converge on Bkk in their tractors.

Here are some things gov't (if Thailand had a gov't) should/could do for farmers:

>>> facilitate dealings between farmers and millers. It's too easy for millers (mostly Chinese-Thai hi-so) to take advantage of hardscrabble farmers.

>>> try to steer farmers toward better annual crops, like hemp

>>> Also encourage farmers to put part of their property aside for long-term crops, like lumber trees, fuits, nuts. Go in to any common market in Thailand, and count how many tree-nuts are on sale. Chances are your count will be zero. If you're lucky, you may find some cashews for sale. There could be brazil nuts or a variation (which I grow)

>>> Avocados grow well in Thailand, as well as many other useful crops, but Thai authorities want rice farmers to grow only rice. Don't even consider any other crop.

your point is so true. I actually know people pulling up immature rubber trees because now sugar is the cash crop. The longer term investments are the most "fruitfull" Everyone chases the quick buck. I have 3000 rubber trees and I can make money at current prices. (approx 30 baht per tree per month) My tress are only 3 yrs old but when the India market explodes as predicted the price is going to go up I think. Anyway the point is that if possible, I think a longer term approach is more beneficial. I do realize that many people do not have that kind of time. The point is though, if everyone is planting sugar now the price will surely fall. Lots of work for nothing same as rice.

[billsmart]

The hand outs have now come to a close, after waiting since October, with promise after promise from the PTP ,as you rightly point out ,the repayments have to come , from some-where , from where, Christ only knows.

They come from the General Fund where they were to come from in the first place, and where they would have come from if Yingluck had not been driven to dissolve her government.

[billsmart]

Biz farming 101 is to grow a profitable product isn't ?

All businesses are supposed to make a profit. Those that are deemed critical to the nation's security or important to maintain for social reasons are sometimes subsidized if they are unprofitable. Western countries do this all the time for arts programs (like the opera or museums), new technology, construction companies of friends of politicians and most universally agriculture. There's nothing unusual about this.

[seajae]

Its time thai farmers took responsibility for what they grow, every single crop will have good and bad years but trying to claim the govt should continually bail you oput or subsidize you is simply bullsh*t. Instead oof just planting whats paying huge money now how about they actually try to find out what will pay good money a a couple of years and build towards it. Its time for farmers to accept the blame as they are the only ones that decide what they plant.

[eddie61]

>>> Avocados grow well in Thailand, as well as many other useful crops, but Thai authorities want rice farmers to grow only rice. Don't even consider any other crop.

I am always amazed that imported avocados sell for 60 Baht, and Thai ones taste like potatoes. I wonder if a few billion baht of loose change could be spent on breeding a species that gives decent fruit when grown here.. I am certain they would sell................

[Baerboxer]

The hand outs have now come to a close, after waiting since October, with promise after promise from the PTP ,as you rightly point out ,the repayments have to come , from some-where , from where, Christ only knows.

They come from the General Fund where they were to come from in the first place, and where they would have come from if Yingluck had not been driven to dissolve her government.

You forgot to explain why Yingluck forgot to pay the farmers for several months, or make adequate provision to pay them before she decided, after a months of vowing not to, dissolve parliament.

Any ideas ?

[SMSinBangkok]

Draws to a close. Dandy.

Now where is that 20 million tons of rice, and who's going to pay back the approximately 1 trillion baht which is owed to the banks so far?

I wish I could draw my business to a close in that manner.

I need more Thainess.

Lessee. 3% interest on 1 tril baht is 30 billion baht per year. If you've drawn it to a close, could I have that part?

I think 3% of 1 trillion Baht (1000 billion) is 3 billion baht.

[TerryLH]

"I think 3% of 1 trillion Baht (1000 billion) is 3 billion baht."

Really? Is my math that bad...

[jope]

The hand outs have now come to a close, after waiting since October, with promise after promise from the PTP ,as you rightly point out ,the repayments have to come , from some-where , from where, Christ only knows.

They come from the General Fund where they were to come from in the first place, and where they would have come from if Yingluck had not been driven to dissolve her government.

You forgot to explain why Yingluck forgot to pay the farmers for several months, or make adequate provision to pay them before she decided, after a months of vowing not to, dissolve parliament.

Any ideas ?

That is exactly what I was wondering all the time. It was no problem in the years before. Subsidies were paid out, nothing to report. And right in the year when Bangkok is shut down (well, partially, didn't work out as planned) and the administration is oh so peacefully besieged the rice scheme fails as banks don't lend money to the government. And miraculously their gates open again as soon as the military has taken over. Why might that be? If you have an explanation (or more than one), please let me know. I am curious.

[rubl]

The hand outs have now come to a close, after waiting since October, with promise after promise from the PTP ,as you rightly point out ,the repayments have to come , from some-where , from where, Christ only knows.

They come from the General Fund where they were to come from in the first place, and where they would have come from if Yingluck had not been driven to dissolve her government.

You forgot to explain why Yingluck forgot to pay the farmers for several months, or make adequate provision to pay them before she decided, after a months of vowing not to, dissolve parliament.

Any ideas ?

That is exactly what I was wondering all the time. It was no problem in the years before. Subsidies were paid out, nothing to report. And right in the year when Bangkok is shut down (well, partially, didn't work out as planned) and the administration is oh so peacefully besieged the rice scheme fails as banks don't lend money to the government. And miraculously their gates open again as soon as the military has taken over. Why might that be? If you have an explanation (or more than one), please let me know. I am curious.

If you're really curious do some searching on the topic. Lots of info on the scheme but lacking clear financial details as none were provided by the Yingluck Administration. Just a wee bit of negligence I guess.

AS for the General Funds, well the Rice Price Pledging Scheme (RPPS) was supposed to be profitable enough to only need the set up of a 500 billion Baht revolving funds to allow payment to people involved and put back in from sales of rice. That didn't work as planned. Even for the 2013/2014 seasons the Yingluck Administration said to need 270 billion and have the funding, but many months already payments were made to some only till in December 2013 the caretaker government suddely wanted to borrow only 130 billion to pay some bills. It would seem from that date till now almost 200 billion has been spent with only maybe half financed by selling rice stock and the rest borrowed. With the end of the RPPS the BAAC seems to have a 700++ billion deficit guaranteed by the Yingluck government.

Investigations still in progress.

Anyway as I started, do some searching if you're serious.

[surangw]

are they still growing rice to add to the pile ?

[manzan]

the good news in the OP is that they will focus more on organic farming... Hopefully they will diversify crops also, I had no idea avocados grow well in Thailand, they're currently imported and i pay a whopping 80 baht a piece!

I did save a seed from an avocado and sure enough, it is growing quite allright...

[boomerangutang]

>>> Avocados grow well in Thailand, as well as many other useful crops, but Thai authorities want rice farmers to grow only rice. Don't even consider any other crop.

I am always amazed that imported avocados sell for 60 Baht, and Thai ones taste like potatoes. I wonder if a few billion baht of loose change could be spent on breeding a species that gives decent fruit when grown here.. I am certain they would sell................

I have over 60 avo trees, all grown from seed. about a third have fruited. One is particularly good. I would offer scions of it for free to Thai Ag experts or farmers, but they wouldn't be interested, even if they understood what I was offering.

There's a government experimental farm near me. It's a large property with many buildings and many staff. I asked a supervisor there what they were doing. She said, 'growing lamyai.' Have they discovered anything interesting, or gotten any particularly good strains? Her answer: 'no.' Your tax baht at work.

are they still growing rice to add to the pile ?

government and pu yai ban, and Thais in general - are not known for thinking outside the box. If rice was grown traditionally, then stick with rice.

[Thai at Heart]

To her credit, Ms Yingluck tried to close down the project last year, but was unable, because farmers threatened to converge on Bkk in their tractors.

Here are some things gov't (if Thailand had a gov't) should/could do for farmers:

>>> facilitate dealings between farmers and millers. It's too easy for millers (mostly Chinese-Thai hi-so) to take advantage of hardscrabble farmers.

>>> try to steer farmers toward better annual crops, like hemp

>>> Also encourage farmers to put part of their property aside for long-term crops, like lumber trees, fuits, nuts. Go in to any common market in Thailand, and count how many tree-nuts are on sale. Chances are your count will be zero. If you're lucky, you may find some cashews for sale. There could be brazil nuts or a variation (which I grow)

>>> Avocados grow well in Thailand, as well as many other useful crops, but Thai authorities want rice farmers to grow only rice. Don't even consider any other crop.

The govt should force the rice buyers to declare a minimum for all.varieties of rice with moisture stipulation 1 month prior to purchase.

The government should then promise to buy anything at 5% below that price.

That will keep the middle men honest.