Govt refuses rice price guarantee, but will help cut farmers' costs

[Lite Beer]

Govt refuses rice price guarantee, but will help cut farmers' costs
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The government has come out with some measures to ensure decent incomes for farmers, insisting that it will not subsidise prices but will only help reduce production costs for the new rice crop.

Meanwhile, farmers have called for the government to guarantee they can get Bt10,000 per tonne of white paddy rice, saying otherwise they will continue to face low incomes or even losses.

At a meeting of five rice farmers' associations and the Commerce Ministry, Jintana Chaiyawonnagal, director-general of the Internal Trade Department, said the government would not set up a subsidy project or purchase rice from farmers as in the past.

"Rice farmers sought an income guarantee at Bt10,000 per tonne of paddy, so that they will get about Bt4,000 in profit. However, the government will find some measures to help farmers to get that profit by supporting their production costs, and encouraging traders to purchase rice at a higher price," she said.

Currently, the price of white paddy is quoted at Bt7,800-Bt8,500 per tonne. Farmers claim that their production costs are about Bt6,000 a tonne.

The main rice harvest season is expected to run from late next month to February.

Measures to help farmers will include soft loans for traders and millers for purchasing rice for about Bt100-Bt200 per tonne higher than market and stocking rice for longer periods. So far, about 133 rice millers have expressed interest in joining the project, which is expected to absorb about 3.7 million tonnes of paddy from the market in the main harvest season.

As well, the Bank for Agriculture and Agricultural Cooperatives will provide Bt20 billion in soft loans to encourage farmers to construct their own rice barns so they do not need to accelerate sales during the harvest season.

Prasith Boonchuey, president of the Thai Rice Farmers Association, said farmers wanted the government to guarantee their incomes at Bt10,000 a tonne because when they sell their rice, millers deduct humidity costs, and the farmers end up with only Bt7,000 per tonne.

As long-term measures, the government is considering plans to enhance yield per rai, encouraging farmers to grow other economic crops in areas that are not suitable for rice, and to improve the quality of rice grains.

Meanwhile, Chanudpakorn Vongseenin, president of the Public Warehouses Organisation, has resigned, citing health problems. The ministry will need to find a new president for this agency soon.

Source: http://www.nationmultimedia.com/business/Govt-refuses-rice-price-guarantee-but-will-help-cu-30244229.html

-- The Nation 2014-09-27

[chainarong]

The Government is this instance has its head screwed on right , the rice farmers are living in yesteryear, subsidies never helped anyone, except to place a false level on costs, the government would be advised to stick to non populist policies, however, government assistance to reduced fuel, fertilizer, electricity and water charges would reduce running costs and not effect the product price in the marketplace, this I might add is for all farmers not just rice farmers, corruption is the evil boogie in these schemes so strict , enforced guidelines would need to be followed , I have my doubts on that score

[2befrank]

There is too much rice in Thailand as it is.

This is a good move and should force many farmers to turn to other crops.

Some things are expensive, so why not farm those instead?

It will help bring prices down and they can still make more than they get from rice.

Garlic, Chilli, potatoes even.

How about fish ponds and fresh water prawns to subsidize their income?.... why are they just sticking their hands out??

The Shin governments have turned these farmers into an economic burden.

I wonder what they will think when their crops fail over the coming 2 years what with this very dry rainy season, very low reservoirs nationwide and El Nino next year meaning low rainfall... Rice is heavily reliant on water. They should be taking action NOW!

[englishoak]

The Vietnamese are getting three times more yield per Rai. Farmers here need to increase the yield and become more efficient.

[2befrank]

The Vietnamese are getting three times more yield per Rai. Farmers here need to increase the yield and become more efficient.

There are people offering to teach them, the rice farmer's association already has a project you can sign up to and they will help with giving your first seed for free.

But the Thai rice farmers seem to be shunning it, they want to just stick their hands out.... It's easier.

I bet they are even expecting to get a nice big subsidy policy from the likes of the PTP if they are still around come the runup to the next election.

They probably don't even realize those days are gone and it won't be allowed any more to garner votes.

[prism]

One way to help the farmers is to upgrade their irrigation canal system and bring water to more farmers. Also provide low cost financing for farm equipment purchases. Both of these initiatives would increase production and benefit them in long term.

[billsmart]

This is not what the government is telling Thai rice farmers in our area. Most of them however are growing Jasmine rice (Khow Homalee) this season. They've been "guaranteed" THB12K / "guion" (metric tonne?). The price for Jasmine rice has always been about 20-25% higher than paddy rice. Just FYI...

[culicine]

One way to help the farmers is to upgrade their irrigation canal system and bring water to more farmers. Also provide low cost financing for farm equipment purchases. Both of these initiatives would increase production and benefit them in long term.

No tax of farming specific chemicals/equipment is a good idea, but take on pickup trucks should remain, as they are not just used by farmers.

Populist policies need to be gotten rid of. I've just edited some government policy papers which are saying just this. People have become dependent on handouts because of such policies.

[h90]

The Vietnamese are getting three times more yield per Rai. Farmers here need to increase the yield and become more efficient.

There are people offering to teach them, the rice farmer's association already has a project you can sign up to and they will help with giving your first seed for free.

But the Thai rice farmers seem to be shunning it, they want to just stick their hands out.... It's easier.

I bet they are even expecting to get a nice big subsidy policy from the likes of the PTP if they are still around come the runup to the next election.

They probably don't even realize those days are gone and it won't be allowed any more to garner votes.

Also there are good concepts of making more money with less quantity:

Organic rice.

Farming Ducks, Fish and rice together (The Ducks and Fish eat the pest, so you don't need the chemicals, and what they poo into the water is a fertilizer).

It also has the advantage that the farmer have their own food.

Some are royal projects others are Santi Asoke. From both there is a shortage....you can't find the products on the market no matter how much you are willing to pay.

Organic is also easy to export.

[jaltsc]

"...farmers have called for the government to guarantee they can get Bt10,000 per tonne of white paddy rice, saying otherwise they will continue to face low incomes or even losses."

A word to the farmers....GROW RICE MORE EFFICIENTLY OR GROW SOMETHING ELSE!!!

You are competing against nations that have invested their time, energy and finances into methods of farming which can compete on the international market. Welfare payments to the Thai farmers will kill the entire economy. Time to move up to the 21st century (agriculturally and industrally, that is) like Vietnam, India, and many other third world countries are doing in order to compete successfully.

[mike324]

There are numerous companies local and abroad that have capitalize on the organic rice in Thailand and made a handsome profit. I think the government needs to do a better job at educating farmers about efficient farming methods. Also subsidize farming equipment / supplies by cutting tax or giving farmers the tax rebate, they can still charge the importer on tax but this will then be passed on to the farmers.

What really got me was the previous governments "Farmers Credit Card" Scheme, it preyed on the farmers by forcing them to buy from approved stores only, and these stores were 20-30% more expensive than if farmers bought the supplies elsewhere.

[Strangebrew]

Actually might be better to restrict growing of rice and change to vegetables and other crops, Even fish farming might be an option.

[Commerce]

It seems the rice farmers have not been informed that the pledging scam plan has indeed been scrapped, as has much of their rice bought already.

Asking for the govn't to buy their rice at a new set price, if buy it at all, [seems] a no brainer.

Up-to-date processes are needed and been offered, but how may rice farmers want to go back to school?

[rickirs]

While refusing to guarantee paddy prices above market prices, the government will :

1) Make soft (government guaranteed) loans for traders and millers for purchasing rice for about Bt100-Bt200 per ton higher than market;

2) Support farmers’ production costs; and

3) Encourage traders to purchase rice at a higher price.

So the government rejects a direct subsidy but will substitute it with many more indirect subsidies. How is this an improvement to wean farmers off government support while continuing to expose the Thai taxpayers with unlimited potential debt? Other than its complexity, the government proposals do not seem much different than Yingluck's rice pledge program.

And the rubber farmers are waiting for their own government deal.

[BSJ]

The Vietnamese are getting three times more yield per Rai. Farmers here need to increase the yield and become more efficient.

There are people offering to teach them, the rice farmer's association already has a project you can sign up to and they will help with giving your first seed for free.

But the Thai rice farmers seem to be shunning it, they want to just stick their hands out.... It's easier.

I bet they are even expecting to get a nice big subsidy policy from the likes of the PTP if they are still around come the runup to the next election.

They probably don't even realize those days are gone and it won't be allowed any more to garner votes.

Hello 2befrank, I've been trying to find 'Thai Rice Farmers Association' and "Thai Rice Growers Association" using English language search on Google.....but the only info is references in other peoples posts and news. If you have a web address you could PM to me I'd be much obliged.

[billsmart]

This is not what the government is telling Thai rice farmers in our area. Most of them however are growing Jasmine rice (Khow Homalee) this season. They've been "guaranteed" THB12K / "guion" (metric tonne?). The price for Jasmine rice has always been about 20-25% higher than paddy rice. Just FYI...

I tried to delete this but couldn't figure out how to do that. Anyway I want to retract what I'd said.

I checked with my wife and the government did guarantee the THB 7,500 - 8,500 price for paddy rice as quoted in the article. The amount ASSUMED that will be paid for Jasmine rice is about THB 10,000 to 10,200, not 12,000. Sorry...

[Thai at Heart]

The Government is this instance has its head screwed on right , the rice farmers are living in yesteryear, subsidies never helped anyone, except to place a false level on costs, the government would be advised to stick to non populist policies, however, government assistance to reduced fuel, fertilizer, electricity and water charges would reduce running costs and not effect the product price in the marketplace, this I might add is for all farmers not just rice farmers, corruption is the evil boogie in these schemes so strict , enforced guidelines would need to be followed , I have my doubts on that score

Rice farmers in Thailand have been screwed forever. Just look at the yields and look at the fertiliser usage. It would be a national disgrace anywhere else.

Let's not get into who has shares in companies producing feed stock for fertilisers.

[Lite Beer]

Farmers call for 10,000 baht per ton of rice

BANGKOK: -- Farmer representatives have called on the government to fix 10,000 baht for a ton of paddy, and to strictly set standard for moisture meters used at every rice mill.

The call was proposed during a meeting between assistant to the Commerce Minister Patamapong Patompat and five farmer groups to discuss relief for rice farmers now suffering from price falls.

Ravee Rungruang, chairman of the Thai Farmers Network, called on the commerce ministry to buy rice with moisture content up to a maximum limit of 15 percent at the price of 10,000 a ton, a level they find profitable, as the farmers now get only 6,000-7,000 baht a ton.

He said the government should also compensate the price difference to farmers owning less than 40 rais of land and strictly set standard for rice moisture measurement meter and provide financial supports for their rice production.

Department of Internal Trade Director-general Chintana Chaiyawannakan, meanwhile, encouraged the farmers to try to find their own solutions to save production cost and make more profit, not just demanded the government to pay 10,000 baht.

Source: http://englishnews.thaipbs.or.th/farmers-call-10000-baht-per-ton-rice/

-- Thai PBS 2014-09-27

[Thaiready]

The price should be 25,000 a ton

[slapout]

The reason for government oversight of private companies who deal with the public is to insure they play above board in weight,mostiure, grade, foreign materal. etc in making payment and taking delivery of product.

When those assigned to oversight are untrained, open to tea money to ignore guidelines and hold their position due to cronyism, family power/money, etc. the famers will be at a disadvantage. Mositure detectors are cheap and every combine operator should have one as well a farm representative to verify mositure before some miller docks him 1/3 the price as he is the authority?????

[fullcave]

About time for the rubber and palm farmers to demand a price guarantees as well, or close down the roads!

[amse]

Did the farmers learn nothing from the Thaksin rice sheme in which they didn't get paid anything until the coup? There's no guarantee in farming, supply and demand determines the prices, are Thai farmers actually that ding-dong? If your not smart enough to make a decent profit, quit the business.

[mikemac]

The Government is this instance has its head screwed on right , the rice farmers are living in yesteryear, subsidies never helped anyone, except to place a false level on costs, the government would be advised to stick to non populist policies, however, government assistance to reduced fuel, fertilizer, electricity and water charges would reduce running costs and not effect the product price in the marketplace, this I might add is for all farmers not just rice farmers, corruption is the evil boogie in these schemes so strict , enforced guidelines would need to be followed , I have my doubts on that score

Rice farmers in Thailand have been screwed forever. Just look at the yields and look at the fertiliser usage. It would be a national disgrace anywhere else.

Let's not get into who has shares in companies producing feed stock for fertilisers.

......................................."Rice farmers in Thailand have been screwed forever. Just look at the yields and look at the fertiliser usage. It would be a national disgrace anywhere else."...........................................

Not too sure I understand what you mean there, what has fertilizer usage got to do with being screwed ? Are you saying they are being sold dodgy fertilizer ? If so it is one of the best conspiracy theories I have heard for a while.

And I don't blame you for not wanting to get into who has shares in these shady companies, don't want to be opening that big ol' can of worms.

[richusa]

Cambodia has won the Jasmine rice quality inspection 2 years in a row...going to be 3...

[ezzra]

The price should be 25,000 a ton

I vote for 50,000 baht a ton and keys to brand new Toyota Fortuner just for agreeing to

be a Thai rice farmer......

[mikehock]

This is not what the government is telling Thai rice farmers in our area. Most of them however are growing Jasmine rice (Khow Homalee) this season. They've been "guaranteed" THB12K / "guion" (metric tonne?). The price for Jasmine rice has always been about 20-25% higher than paddy rice. Just FYI...

Really.

And who exactly has guaranteed that price??

[tullynagardy]

About time for the rubber and palm farmers to demand a price guarantees as well, or close down the roads!

http://www.bloomberg.com/news/2014-09-24/fearless-farmers-bring-fight-to-test-thai-junta-southeast-asia.html

Do you actually follow the news here?

[Thai at Heart]

The Government is this instance has its head screwed on right , the rice farmers are living in yesteryear, subsidies never helped anyone, except to place a false level on costs, the government would be advised to stick to non populist policies, however, government assistance to reduced fuel, fertilizer, electricity and water charges would reduce running costs and not effect the product price in the marketplace, this I might add is for all farmers not just rice farmers, corruption is the evil boogie in these schemes so strict , enforced guidelines would need to be followed , I have my doubts on that score

Rice farmers in Thailand have been screwed forever. Just look at the yields and look at the fertiliser usage. It would be a national disgrace anywhere else.

Let's not get into who has shares in companies producing feed stock for fertilisers.

......................................."Rice farmers in Thailand have been screwed forever. Just look at the yields and look at the fertiliser usage. It would be a national disgrace anywhere else."...........................................

Not too sure I understand what you mean there, what has fertilizer usage got to do with being screwed ? Are you saying they are being sold dodgy fertilizer ? If so it is one of the best conspiracy theories I have heard for a while.

And I don't blame you for not wanting to get into who has shares in these shady companies, don't want to be opening that big ol' can of worms.

They have been allowed to continue using outmoded, incorrect practices, with no fallow periods, with recommeneded use of ever increased amounts of fertilisers being the solution.

When they should have been learning better rotation, ploughing, sowign, harvesting techniques to reduce the amount of fertiliser needed, the companies have been ever chasing enormous volumes of product to the detriment of quality. Hence, the ever increasing need for more and more fertiliser.

There are some places that are so absoultely marginal, they should never even be attempting to grow rice at all. But the massive use of fertilisers has allowed production but at very low yields. THey need to start weaning farmers off fertilisers to bring costs down, and focus on natural ways to increase yields but then reduce the number of crops per year in some places. If they can grow 20 tonnes at 3USD per tonne cost across 2 crops, that can turn out better than 25 at 5USD per tonne cost, if the sale price is 6

This is the issue. Growing what you can at the best margin, and this endless chase of volume using inorganic fertilisers and multiple crops which just serves to deplete everything in the soil has to stop.

Who benefits from this extra volume? Certainly not the farmers.

Does anyone think anyone in Bangkok thinks that there is an inherent benefit in reducing fertilisers and pesticide consumption? This is a multibazillion baht business, and it will not be dismantled. Will not.

[janpharma]

Did the farmers learn nothing from the Thaksin rice sheme in which they didn't get paid anything until the coup? There's no guarantee in farming, supply and demand determines the prices, are Thai farmers actually that ding-dong? If your not smart enough to make a decent profit, quit the business.

Yes...and the price of the rice in Cambodja and Vietnam is much cheaper and the same quality...Maybe try to explain them that Thailand in not the center of the world and nobody is waiting to pay "double"...

[mikehock]

The price should be 25,000 a ton

I vote for 50,000 baht a ton and keys to brand new Toyota Fortuner just for agreeing to

be a Thai rice farmer......

The poor farmers got 12, 000 to 15 , 000 baht a metric ton last year. ..they made 100% profit.(cost 6, 000 baht per ton)..so they must have money saved up...time for them to learn ..if the market price for rice isn't high enough..don't grow rice..