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Thai research shows rice planting subsidy pushes up fertiliser, pesticide prices


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Research shows rice planting subsidy pushes up fertiliser, pesticide prices

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BANGKOK: -- The Centre for Applied Economics Research of Kasetsart University says the government's rice planting subsidy of 1,000 baht per rai for farmers could stimulate spending but in turn could also push up prices of fertilisers and farming pesticides.

A recent survey of farmers in Lopburi revealed that each household of farmers obtained an average 13,500 baht subsidy from the government.

68% of households spent the subsidy in farming investment, while 17% in debt repayment and the rest in household spendings.

It said although most farmers were happy with the subsidy, but such measure also pushed up higher prices of fertilisers and farming pesticides of around 3-5%.

A sack of fertiliser goes up 20-25 baht to 670-675 baht, while pesticides also rises 19-20 baht to 510-520 baht.

The centre director Mr Kampanart Pensupha suggested that the government find out more channels to reduce debt burden of farmers and to encourage cost saving and productivity to increase their competitiveness in the long term.

According to the Bank for Agriculture and Agricultural Cooperative, it has so far paid 15 billion baht subsidy to 1.5 million households.

The Centre for Applied Economics Research said that if the total 40 billion baht subsidy were paid to farmers, it could help stimulate 0.6% growth in GDP or 91 billion baht spending in baht in the farming and non-farming sectors.

Source: http://englishnews.thaipbs.or.th/research-shows-rice-planting-subsidy-pushes-fertiliser-pesticide-prices

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-- Thai PBS 2014-12-02

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This is what happened when the government create a false demand for rice, they thought that they

are going to corner the world's rice market and dictate prices, in realty they have left holding

hundred of thousand of rotting rice, and farmers that don't care any longer how the grow the rice

as long as they it grows fast to sell it to the government...

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The government payment to farmers is not what pushed up the price of fertilizers/pesticides, but the greed factor of those holding virtual monopolies on the import, distribution, sale, etc of these farm necessities.

In fact as world oil prices have dropped to near decade lows the transport charges for all needs, fuel cost on farm, and especially fertilizer should have decreased by a rather large %. Don't knew who came up with this conclusion from the research that was referenced but they might consider another line of work. This sounds like a BIB statement on crime investigation, lots of half baked ideas but seldomn any solution.

Edited by slapout
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This of course is straight out exploitation by the fertiliser and pesticide people, just because the farmers get some more money they are in for a share.

Exactly what happened during the pledging although on a grander scale then, to the stage where it was a rip off of the farmers.

There needs to be some set up of non profit farmer co-operatives to supply farmers, something the govt should look seriously at, although that would be fiercely opposed by the internationals who have these commodities tied up.

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Thailand is desperately in need of some well qualified agricultural economists. To watch the farmers in my village receive a handout in one form or another only to have it taken away by someone else is heartbreaking. No matter how much I try to advise and show by example one way or another, they continue to do what their father's did first and what the rest of the community does second.

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The government payment to farmers is not what pushed up the price of fertilizers/pesticides, but the greed factor of those holding virtual monopolies on the import, distribution, sale, etc of these farm necessities.

In fact as world oil prices have dropped to near decade lows the transport charges for all needs, fuel cost on farm, and especially fertilizer should have decreased by a rather large %. Don't knew who came up with this conclusion from the research that was referenced but they might consider another line of work. This sounds like a BIB statement on crime investigation, lots of half baked ideas but seldomn any solution.

What does the cost of oil have to do with fertilizer whose main ingredients are nitrogen, phosphate, and potassium? And if the farmer contracts for transport and harvesting, it's unlikely that operators will lower their costs because of lower fuel costs.

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