7 years needed to clear Thai rice-pledging debts: BAAC

[webfact]

RICE DEBT
7 years needed to clear rice debts: BAAC
The Nation

BANGKOK: -- The Bank for Agriculture and Agricultural Cooperatives believes it will take about seven years to clear the Bt755 billion in debts related to the previous governments' rice-pledging projects.

According to BAAC managing director Luck Wajananawat, about Bt50 billion of that debt is from the rice-subsidy scheme before 2013. The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration. It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks.

The budget for fiscal year 2015 allocates Bt6.88 billion for the farmers' income guarantee and Bt70.13 billion (Bt30.69 billion principal amount and Bt34 billion in interest) for payments related to the rice-subsidy projects, Luck said.

Another source of income to help clear the outstanding debt in fiscal 2015 is the proceeds from the sales of rice stocks kept in state warehouses, which the government estimates at about Bt60 billion, he said.

The government is spreading the rice-subsidy debt repayments over a long period to avoid putting too much pressure on the state budget, which is needed for the country's development projects, he said.

The current military-led government will not reintroduce the pledging scheme of the previous elected government, which set the rice price 40-50 per cent above the market price, allegedly resulting in a loss of at least Bt400 billion. The current regime will instead help rice farmers lower their costs while raising yields and productivity, Luck said.

Source: http://www.nationmultimedia.com/business/7-years-needed-to-clear-rice-debts-BAAC-30243432.html


-- The Nation 2014-09-17

[NeverSure]

"It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks."

Do we have to keep hearing crap about sale of rice stocks? Is this the ghost of Yingluck speaking?

What rice stocks??

[halloween]

Perhaps those whose corrupt policy and ineptitude plunged the country into debt might contribute?

No, I don't expect voluntary contribution.

[siampolee]

According to BAAC managing director Luck Wajananawat, about Bt50 billion of that debt is from the rice-subsidy scheme before 2013. The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration. It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks.

Certainly it seems as if the cost of the Democrats rice subsidy scheme is partly involved however compared to the P.T.P. initiated debt that Democrats induced 50 billion baht is indeed small beer.

The legacy left to this country by the Shinwatra clan P.T.P. and its clique is indeed a millstone of debt and a classic example of ''me first corrupt practices inefficient management at the highest level.''

Edited September 17, 2014 by siampolee

[kingalfred]

755 billion in rice corruption debt ? Staggering.Make up the loss in Tourism? Ooops

[ramrod711]

"It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks."

Do we have to keep hearing crap about sale of rice stocks? Is this the ghost of Yingluck speaking?

What rice stocks??

I think the article refers to the unsold, substandard quality, rotting and vermin infested rice stocks.

[Tatsujin]

It seems to me that a very large proportion of these "Politicians" (or thieves if you prefer the more accurate job title) are "unusually wealthy", especially when you take into account the undeclared assets in wives, children's, gardeners, maids names . . . so "if" a Politician is found to be guilty of corruption, then those assets need to be hit and hit hard and the money put back into the state coffers. That would clear some of those debts quickly enough.

[halloween]

According to BAAC managing director Luck Wajananawat, about Bt50 billion of that debt is from the rice-subsidy scheme before 2013. The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration. It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks.

Certainly it seems as if the cost of the Democrats rice subsidy scheme is partly involved however compared to the P.T.P. initiated debt that Democrats induced 50 billion baht is indeed small beer.

The legacy left to this country by the Shinwatra clan P.T.P. and its clique is indeed a millstone of debt and a classic example of ''me first corrupt practices inefficient management at the highest level.''

The debt may well go back to 2005-6 when Thaksin introduced rice pledging. Note that the Democrat scheme was a subsidy, and AFAIK it was never claimed that it would be revenue neutral or rotating, let alone profitable.

[DP25]

Perhaps those whose corrupt policy and ineptitude plunged the country into debt might contribute?

No, I don't expect voluntary contribution.

I don't expect to see voluntary contributions from them either.

That's why it shouldn't be voluntary, their assets should be confiscated by the state.

[dBrown]

So in 2021 they still gone sell rice harvested in 2011 for human consumprion ?

Will it be called Vintage Jasmine?

[WitawatWatawit]

So that's a pizza every night for 7-8 million years depending on the extra anchovies and a side order of garlic bread. Or a hearty meal for every Thai family for about 450 years. Or Wayne Rooney's per diem for 10 years. Really, though, the waste is sickening when you think about the good deeds the money could have done.

[trogers]

And there are some people in this forum still refuting the fact that government debts have increased substantially, all thanks to the Yingluck gang.

[Utley]

According to BAAC managing director Luck Wajananawat, about Bt50 billion of that debt is from the rice-subsidy scheme before 2013. The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration. It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks.

Certainly it seems as if the cost of the Democrats rice subsidy scheme is partly involved however compared to the P.T.P. initiated debt that Democrats induced 50 billion baht is indeed small beer.

The legacy left to this country by the Shinwatra clan P.T.P. and its clique is indeed a millstone of debt and a classic example of ''me first corrupt practices inefficient management at the highest level.''

The debt may well go back to 2005-6 when Thaksin introduced rice pledging. Note that the Democrat scheme was a subsidy, and AFAIK it was never claimed that it would be revenue neutral or rotating, let alone profitable.

Thaksin - who is Thaksin? I looked in my history book and there was no mention of this fictional character.

[almafudd]

"It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks."

Do we have to keep hearing crap about sale of rice stocks? Is this the ghost of Yingluck speaking?

What rice stocks??

I think the article refers to the unsold, substandard quality, rotting and vermin infested rice stocks.

I can't remember hearing the outcome of the "rice stock" audit.

Were the figures ever released?

[Robert2006]

Buying votes doesn’t come cheap!

[chainarong]

The PTP along with the rice farmers have indeed made their bed, now they must lay in it, the sad part of this tail hasn't finished, has the lesson been learnt, everyone in the Thai community now has a burden to carry , just because of greedy vote getting, they showed that a sound business model of experience politicians they where not, only well thought out opportunists that hoodwinked others and remember if this debt is for the rice scheme what is the debt repayment time period for all this infrastructure that's been promised. Don't bit of more than you can chew.

[rametindallas]

The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration

Another source of income to help clear the outstanding debt in fiscal 2015 is the proceeds from the sales of rice stocks kept in state warehouses, which the government estimates at about Bt60 billion, he said.

So the Yingluck Thaksin government bought, in excess of, Bt. 700 billion of '80% substandard' rice that is worth Bt. 60 billion today. For all they money they spent wasted, is the Thai rice market more healthy? Are Thai rice farmers more productive? Have the Thai rice farmers bought their own land/paid off their debts? Are Thaksin and his cronies wealthier?

Thaksin is a genius at fleecing Thailand. Too bad he didn't use that brain power to improve the lives of the people of Thailand. I think it is safe to say that Thaksin has extracted his 'pound of flesh' from Thailand as revenge for his massive loss of face and being pulled out of the feeding trough.

http://idioms.thefreedictionary.com/pound+of+flesh

[Ulic]

Seize the money from the families that were involved in corruption in the rice scheme and those who said

it would work. IE Those who maintained the Thai government could corner the world rice market, drive up the

price and then sell the hoarded rice for substantially more that they bought it for.

[Valentine]

The debt could be paid much quicker if there are convictions of those who benefitted illegally from the scheme & their cash & assets used. Corruption cases related to this seem to have gone out of the limelight.

[AleG]

The debt could be paid much quicker if there are convictions of those who benefitted illegally from the scheme & their cash & assets used. Corruption cases related to this seem to have gone out of the limelight.

Not all the losses are in corrupt hands, that is not to say they didn't stem from corrupt practices.

Let's assume a corrupt politician in charge of G2G deals, he contacts a corrupt representative of another country and agree to make a deal for X00.000 tons of rice. The price is, of course secret, so they agree to make a transaction at a (large) loss for Thailand but that's OK because they can skim, let's say 2%, and split it between them. Foreign crook gets to gloat what a great deal he got and the Thai guy gets to gloat over how much rise he sold, win win situation, except for the people (as in the entire country) that just got ripped off.

In that case you may be able to recoup 1% of the value, but never the entire loss.

[recycled]

Nice spin, throw in a date or two, few figures here and there, everyone goes of on a tangent arguing debating about political parties. This Mafioso scheme was initiated by the PTP for votes and lining pockets, full stop. Now just jail those responsible from the top down for a very long time, seize and sell all their assets, and remove them from the history books. What rice rip off, never happened.

[Halion]

7 Billion debt from a scheme that was a scam from the onset and Yingluck is free to travel and go shopping without a care in the world. How the hell does this country expect to be taken seriously when an air head can become Prime Minister and then plunge the country into both debt and disaster and simply walk away. Mai Pen Rai.

If she and the relevant members of her administration are not brought to task for this then it makes a total mockery out of all the verbiage of reform and the war against corruption.

[rickirs]

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

It seems to me that a very large proportion of these "Politicians" (or thieves if you prefer the more accurate job title) are "unusually wealthy", especially when you take into account the undeclared assets in wives, children's, gardeners, maids names . . . so "if" a Politician is found to be guilty of corruption, then those assets need to be hit and hit hard and the money put back into the state coffers. That would clear some of those debts quickly enough.

Off topic and your comments have been removed to comedy.

[Tatsujin]

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

It seems to me that a very large proportion of these "Politicians" (or thieves if you prefer the more accurate job title) are "unusually wealthy", especially when you take into account the undeclared assets in wives, children's, gardeners, maids names . . . so "if" a Politician is found to be guilty of corruption, then those assets need to be hit and hit hard and the money put back into the state coffers. That would clear some of those debts quickly enough.

Off topic and your comments have been removed to comedy.

The topic is about massive public debts caused by "politicians" . . . how are my comments in any way comedic or off topic? Shouldn't those "politicians" that cause these massive public debts be held accountable for their actions and made to reimburse the public coffers in some way?

Or do you have a better "non-comedy on-topic" answer?

[rickirs]

"The budget for fiscal year 2015 allocates Bt6.88 billion for the farmers' income guarantee"

Everyone miss this NEW debt source? On top of paying off the rice pledge debts another debt is being added. What is "farmers' income guarantee," how does it work, and is it going to be open-ended like the rice pledge program, so that Bt.6.88 billion could become Bt. 50 billion? I don't begrudge putting povery-level rice farmers on welfare but this vague program seems very broad - any kind of farmer having any kind of income. Depending on how this new program works, it may actually encourage MORE "farmers" in order to claim an income guarantee and create even greater debt that has no connection with market prices of any kind of crop.

[billd766]

Buying votes doesn’t come cheap!

It does if it is not your money you are using.

[Robert2006]

Buying votes doesn’t come cheap!

It does if it is not your money you are using.

You are absolutely correct!

[mike324]

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

According to BAAC managing director Luck Wajananawat, about Bt50 billion of that debt is from the rice-subsidy scheme before 2013. The remaining amount, in excess of Bt700 billion, was piled up by the former Yingluck Shinawatra administration. It will take about seven years to clear the whole debt based on the government's current repayment rate and sale of rice stocks.

Certainly it seems as if the cost of the Democrats rice subsidy scheme is partly involved however compared to the P.T.P. initiated debt that Democrats induced 50 billion baht is indeed small beer.

The legacy left to this country by the Shinwatra clan P.T.P. and its clique is indeed a millstone of debt and a classic example of ''me first corrupt practices inefficient management at the highest level.''

The debt may well go back to 2005-6 when Thaksin introduced rice pledging. Note that the Democrat scheme was a subsidy, and AFAIK it was never claimed that it would be revenue neutral or rotating, let alone profitable.

I'd like to see the numbers on how $23.5 Billion USD / year will be paid back. For 7 years straight.

Part of it was actually already initiated under the PTP through increasing toll fares by doubling it at many toll booths. Which is pretty absurd, tolls are suppose to get cheaper not more expensive after 20 years. That was the most they could do without increasing corporate tax to avoid compromising their reputation among the middle and high income voters.

I believe the General will also step up tax collection through property taxes, that should fall through by end of the year.

Edited September 17, 2014 by mike324

[outsider]

And how many more years to clear the roads of the sudden rise in number of vehicles, thanks to another populist policy. If clearing the roads is at all possible

[rubl]

"The budget for fiscal year 2015 allocates Bt6.88 billion for the farmers' income guarantee"

Everyone miss this NEW debt source? On top of paying off the rice pledge debts another debt is being added. What is "farmers' income guarantee," how does it work, and is it going to be open-ended like the rice pledge program, so that Bt.6.88 billion could become Bt. 50 billion? I don't begrudge putting povery-level rice farmers on welfare but this vague program seems very broad - any kind of farmer having any kind of income. Depending on how this new program works, it may actually encourage MORE "farmers" in order to claim an income guarantee and create even greater debt that has no connection with market prices of any kind of crop.

Appalling, isn't it.

Even if all that is lost it still takes the junta 100 years to rake up 700 billion. Real amateurs