Government to help Thai farmers store rice in barns instead of selling

[webfact]

Government to help farmers store rice in barns instead of selling



BANGKOK: -- The Internal Trade Department will help rice farmers store their crops in barns so they will not have to rush to dump them on sale which will send rice prices to plunge, said Mr Bunyarith Kalayanamit, director-general of the department, on Monday.

Meanwhile, the Bank of Agriculture and Agricultural Cooperatives will extend credits to farmers to buy up rice crops for storage in their barns so they don’t have to sell their crops to the millers and face price suppression.

The credit to be extended by farmers by BACC will be limited at 300,000 baht per household.

Mr Bunyarith said, through these means, he expected farmers would be able to slow down the sale of their crops of up to two million tonnes.

Many farmers in Si Sa Ket province have dumped their rice crops for sale at the central market because they do not have space to dry their crops despite the fact that they will get about 2,000 baht less for each tonne of rice sold to the millers compared to rice which were properly dried.

It was reported that millers would buy undried rice from farmers at 10,500 baht per tonne which is below cost price.

Source: http://englishnews.thaipbs.or.th/government-help-farmers-store-rice-barns-instead-selling/


-- Thai PBS 2014-11-11

[Thai at Heart]

Try putting undried unmilled rice in a store and see how long it keeps. They have been growing rice for thousands of years, and now they have a wonderplan?

[Fiddlesticks]

We are well aware of the governments "success" in storing rice. Now they want to share their recipe for success as if the farmers did not have enough problems of their own.

[apetley]

Absolutely clueless and repeating the same mistake of the previous govt.

The farmers will soon find out how little their already cheap rice is worth if they put it into a crappy little barn for another year.

[SABloke]

A rice scheme by any other name...

Edited November 11, 2014 by SABloke

[slapout]

Many of the rice storage bins in our area that were used in past for storage for personal consumption, have been sold for the lumber price. The combines being used in todays harvests are cutting rice at a mositure contenr of 20% +, Drying grain in the open requires a hard, clean surface, and no rain which many farmers do not have nor can control. Not to many of these obersations make this proposal sound too promising,

Most of the storage facilities for small grain are laughable by international standards. Add lack of knowledge in pest control , and lack of proper facilities for Thailaands yearly rice production and now they want to propose farm storage???? We have/still are seeing how some 18- +tons can become unsalable using what some call acceptable storage facilities, another hare brained proposal.

[allan michaud]

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We are well aware of the governments "success" in storing rice. Now they want to share their recipe for success as if the farmers did not have enough problems of their own.

No, that was all down to the other lot, this lot in green don't make mistakes so clearly this will be a huge success.

[Fat Haggis]

Isn't there at least one rice producing/storage expert within the new Government that can't knock some sense into some people??

[Thaiready]

They need to invest in Grain bins like we use in the US.

They should have through the years without ventilation the product will spoil due to moisture content.

[Fat Haggis]

To add ,All this is the commerce ministers master plan for getting 15,000 baht per tonne next year?

What are the plans for when the rice doesn't meet his pledge price and the farmers are once again fist fecked?

[worgeordie]

One thing for sure,none of the Govts.here seem to be unable to

learn from past mistakes,and keep on repeating them ,thinking

this time something is going to be different,is that not one of

the signs of madness !

regards Worgeordie

[NextStationBangkok]

It is a disaster plan. Public paying Baht.40/KG for good rice, while government announced 80% of the rice is rotting in stocks. In general, growing rice generates lot of Green house gas emission that causes ozone layer damage, that causes environment impact. Better to sell the rice according to market demand and supply rather than keep it stored and throw in the ocean later. Thailand should not do this when so many poor people around the world nothing to eat.

[Valentine]

I thought I saw a news clip recently from the government about promoting more efficient ways to farm rice including growing organically. Anything to cut down on the number of pesticides (Monsanto will be dead against this) has to be good & since we have not had a hub story this week how about Thailand being the hub of organic rice. You might not be able to grow as much but the monetary returns are far greater plus the health factor would have to be pleasing to all. I wonder how much money is lost by treating farmers suffering debilitating effects from spraying fertilizers & persticides, not to mention the personal tragedies involved when the bread winner dies or cannot work anymore.

[rickirs]

"... farmers would be able to slow down the sale of their crops of up to two million tonnes."

And thus, slow down any funds farmers might receive to offset their costs. Why would any farmer want to do that? Maybe it would be better for the government to use a modified rice pledge program (with proper quality control, security, and accountability monitoring procedures in place) that paid farmers 60% of expected market price for pledged rice with balance to be paid upon sale, if any. Of course so as not to carry the taint of the failed Yingluck rice pledge program, the Junta's program could be rebranded to something like "Propserity Through Rice Program" or "Rice Happiness Program."

And assuming farmers even have adequate storage facilities to protect and preserve rice quality, doesn't this idea cut out the granary owners from substantial revenues? Sure the NCPO can just tell the owners (as they have with many small business owners in the food and products industries) to just expect smaller profits for the good of national happiness, but that may result in political hostility.

[mikemac]

.........................."Government to help Thai farmers"....................................

As opposed to -

"Government claim to help rice farmers but actually plan to rob them blind, causing mass financial difficulties and in some cases suicide"

I prefer option 1, thank you.

[Robby nz]

Never seen a farmers rice storage facility in all my travels except on a small scale for their own use and that was sticky rice that they grew on a small scale for themselves.

The normal practice where I live is straight from the harvester into trucks and to the mill.

If a farmer did have a barn or other storage facility he would also need machinery to handle the rice which farmers here don't have.

To start and build barns buy tractors, loaders and anything else needed would cost far more than could ever be gained even if the price did rise and there is no guarantee of that.

There would also be loss in handling to be factored in making this a non starter from those who know just as much about rice farming as the architects of the pledging scheme........Zilch.

[Fat Haggis]

Maybe it's just a way of passing the buck instead of the Government having to store it they pass that down to the farmers and when the quality drops and it can't be sold as it's rotten and not fit for consumption, then the Government can say " not our problem" ???

[wow64]

This will help them... silver bullet.

[mikemac]

Maybe it's just a way of passing the buck instead of the Government having to store it they pass that down to the farmers and when the quality drops and it can't be sold as it's rotten and not fit for consumption, then the Government can say " not our problem" ???

Considering where we are that sounds about right.

[diehard60]

If the government REALLY wanted to help the farmers, they get the price of fertilizer to come back down to a reasonable rate. And then boost the price of rice as it is way down. Right now the fertilizer you would buy for 10 rai of land would be so much that after you sold ALL the rice you would not even break even.

[BillyBobThai]

For me, money well spent, would be to set co-op's in each community that would sell seed, fertilizer and chemicals at wholesale prices. They could also have small scale solar grain dryers for use by the members. A group of agents should also be available to help farmers with technical problems. If properly set up and run, they should be self sustaining after a few years.

I know, all of this requires logic which is not a strong Thai trait.

[BSJ]

Many problems to be solved. I am trying hard to keep this post to 1 or 2 paragraphs!

The cost of producing rice is ever on the upward. Next year the wife is planting 20 rai and she has 20 rai not committed. We would like to grow something....but what? In the rainy season she would have to have a drain cut to collect water to put in a reservoir which she would have to have dug, then install an 8" pump to move the water to somewhere else so her crop would not be waterlogged. But where does she send the pumped water? Who pays for the diesel to run the pump?

Maybe she could grow yams. Yams love water...up to a point!

What I am trying to say is there are no easy answers.

Multiply one farmers problems by 10 million and it's a huge problem for the government to solve. And then add the extra burden of the rice mountain and associated costs.

On farm storage is common for next years crop and the hulled and polished rice each family use for the coming year. But massive on farm storage is not available. And right now all the concrete pads for drying rice are used to the max. There is no more concrete to use for rice drying. Each farmers rice can take 5 or 6 days to dry out. Add in the rainy days and each farmer needs his patch of concrete for 10 or 11 days.

But what is verging on the absurd is there are many farmers in this area who only several weeks ago harvested their last crop now have more rice coming on in the same paddie!

Crazy!

[Thai at Heart]

The irony is that this distinct lack of on farm or village storage (which could have been built to help farmers to sell at better prices), was never considered, because it wod have helped the farmers versus the rice buyers.

They have had a rice industry for centuries , and this investment was never made because of course it would have enriched the farmers at the expense of the Bangkok exporters.

[finnomick]

It was reported that millers would buy undried rice from farmers at 10,500 baht per tonne -- what a load of utter garbage. First the government want the farmers to get 15,500 baht per tonne ( utter garbage ), this price will NEVER happen. Right now in our area of Buriram, the mills are ONLY paying 9,000 baht per tonne for dried rice and the reason for that is that last years crop has only just been delivered to the government backed mills within the last two weeks so no-one wants the new crop. Either the farmers will have to bite that bullet or store until next year

[RustBucket]

So there we have it.

The answer I was waiting for to stop the collapse of the Thai rice industry.

Stop them from selling it and handing them credit, so the banks get richer and the poor get more indebted.

The government rice will need to be thrown or given away to repair this ballsed up industry.

I would not like to be a rice farmer in Thailand at the moment.

They are NOT going to accept this option.

[mikemac]

If the government REALLY wanted to help the farmers, they get the price of fertilizer to come back down to a reasonable rate. And then boost the price of rice as it is way down. Right now the fertilizer you would buy for 10 rai of land would be so much that after you sold ALL the rice you would not even break even.

Interesting proposal but not as easy to do as you would think. And if the current government even thought about it, it would be seen as being a populist move.

As I said on another topic my wife's family outside of Surin have just finished harvesting and their only complaint is that the rice prices are down this year and they are blaming the previous government for this.

And I doubt if your last sentence is correct, if so there would be no rice farming in Thailand. How could they possibly pay more for the fertilizer than the crop was worth ?

[MaiChai]

Wifes family grow the rice they need for their own personal consumption and future planning. Then they try to diversify the crops they grow. Vegetables, water melons, etc. Kind of don't put all your eggs in one basket. It requires more effort than just growing rice but the benefits are obvious. And then you can eat what you grow rather than paying someone elses profit.

[Si Thea01]

Why has it taken so long for this to happen. My wife has a small farm, which she has people running for her and has been doing this for years. When the price is low she holds on to it and obviously sells it when the price is right. Has always made a small profit each year after meeting all the overheads.

Edited November 11, 2014 by Si Thea01

[Jay Sata]

Let's face it Thailand's agriculture needs dragging in to the 20th century before it can compete in the 21st.

[AnotherOneAmerican]

Let's face it Thailand's agriculture needs dragging in to the 20th century before it can compete in the 21st.

You mean sell all the farms to one big company and throw all the farming families out in the street.

Like they did in the USA.

I would say the west has got farming wildly wrong.

There's a lot to be said for small, diversified family farms.

Edited November 11, 2014 by AnotherOneAmerican