Thailand's rice basket shrivels amid drought of long-term policy

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STREETWISE
Thailand's rice basket shrivels amid drought of long-term policy
Achara Deboonme

BANGKOK: -- Thailand's rice basket shrivels amid drought of long-term policy The tyranny of the hot season has returned, as the temperature climbs towards a sizzling 40 degrees.

Office workers are complaining about the steamy commute to air-conditioned workplaces. They should spare a thought for those who have to work under the blazing sun, including farmers, who are watching their crops whither for lack of water - though they won't fetch much anyway at current prices.

Official statistics show that the country's major reservoirs have dropped to 57-60 per cent capacity - near the levels of 2005 when one of Thailand's worst-ever droughts affected 71 provinces and caused nearly Bt8 billion in damage.

This year, the Agriculture and Agricultural Cooperatives Ministry estimates the drought will affect 16.17 million rai of farmland in 58 provinces, including 12.61 million rai in the Northeast, the region least covered by the national irrigation system.

Over half of our working-age population is in the agricultural sector, yet for decades the irrigation system has expanded at a snail's pace.

The latest figures show that in 2012, only 29.57 million rai, or 9.22 per cent of Thailand's landmass, was irrigated.

That represents only a slight increase on the 28.35 million rai in 2009.

That year, as the Royal Irrigation Department celebrated its 107th anniversary, its chief unveiled a plan to expand the irrigated area by 6 million rai by 2020. He explained that Thailand's reservoirs had a combined capacity of 52,741 million cubic metres - only 70 per cent of the annual demand of 73,788 million m3. Without new investment, the shortfall could hit 34,183 million m3 in 2019.

The root of this longstanding problem lies in the fact that policymakers treat irrigation as a political tool, channelling budgets to temporary projects that only address short-term hurdles. No government has ever embarked on a grand-scale project to tackle long-term problems. Irrigation plans were included in the Yingluck government's Bt350 billion water-management plan, but it was the 2011 flood that sparked its creation, not drought.

The junta scrapped that plan and drew up a new strategy, expected to cost about Bt900 billion over 10 years. However, last month the Cabinet refused to green-light the comprehensive strategy, approving only some of its projects for this fiscal year and keeping the budget to Bt50 billion. Prime Minister Prayut Chan-o-cha admitted that the limited budget available meant only urgent projects could be carried out this year, though the 10-year strategy remained in place.

The Cabinet resolution received wide media coverage, but not so the attacks from the Engineering Institute of Thailand (EIT), which is adamant that the strategy and the investment for this year do not meet the national interest.

The EIT's academic network criticised the strategy for ignoring public views and failing to address the root problems. Warning that the plan carried more negative consequences than the Yingluck government's version, it vowed not to rubber stamp the project.

Pramote Maiklad, former chief of the Royal Irrigation Department, remarked that "The NCPO's version is not a real strategic plan, but rather the annual budget allocation plan."

With the global economy still fragile thanks to the slowdown in China and difficulties in the euro zone and Japan, Thailand's exports are expected to remain sluggish. TMB Analytics anticipates a 1 per cent growth rate this year, following two years of contraction. In this scenario, economists agree that domestic demand should play a bigger role in driving the economy. Yet, they are also concerned about lower crop prices, which will reduce farmers' income. Couple that with Thailand's high household debt of 85 per cent of GDP, and there are doubts about how much farmers and consumers in general can spend.

As part of its economic stimulation programme, the government plans cash handouts for farmers.

While that move is welcomed by Federation of Thai Industries chairman Supant Mongkolsuthree, he said last week that what are truly needed are mid- to long-term solutions to help farmers lift productivity and lower production costs.

I guess that he might not like the Commerce Ministry's Blue Flag project either. The project, which sells products at ad-hoc markets at about 30 per cent below their market price, reaches relatively few people but costs over Bt100 million annually. It will require a budget of Bt241 million this fiscal year.

If farmers' income were to climb in a sustainable way, they would be able to spend more and perhaps also save more. But as things stand, their finances are at the mercy of capricious Mother Nature. And no matter who is in power, their problems remain neglected.

Thailand can no longer afford to handle problems as they arise. We need to start thinking "out of the box" and forge long-term strategies.

Thai nationalists have enjoyed success in guarding our tiny petroleum reserves. They should also push for a reform agenda to deal with drought. If the problems aren't addressed in a sustainable and comprehensive way, millions of our farmers will likely need government support when they get old and can't work in the fields. Then, the moaning from taxpayers will only get louder.

Source: http://www.nationmultimedia.com/opinion/Thailands-rice-basket-shrivels-amid-drought-of-lon-30255170.html


-- The Nation 2015-03-03

[rametindallas]

They should spare a thought for those who have to work under the blazing sun, including farmers, who are watching their crops whither for lack of water - though they won't fetch much anyway at current prices.

The farmers were told not to plant this crop as the rainfall last rainy season was below average and the dams never got full. This will be a good opportunity, however for the government to sell some of the 18 mil. tons of rice in storage without being in competition with the farmers. As for flood control/irrigation, are they linked or are they two separate problems? The OP spends a lot more time writing about politics and criticizing rather than reporting on what has actually been proposed so it is difficult, if not impossible, to make any judgment on the matter.

Antiquated methods of small-patch rice farming will not work in the 21st century. My father along with several hundred other dairy farmers were put out of the business by the Federal Government in the 1950s. Our Parish/County has only three very large dairies now. Specialty crops that need a lot of tending may be the future for these small-patch farmers who want to stay on the land because they just can't compete with large scale farming techniques and the public shouldn't have to subsidize buggy whip manufacturing.

[trogers]

Over half the working population is in Agriculture.

Speaks volume on the state of education in the country and explains why unemployment is so low.

[rasmus5150]

"As part of its economic stimulation programme, the government plans cash handouts for farmers."..... Are you kidding me!!!!!......

[englishoak]

Nope and probably.

Edited March 3, 2015 by englishoak

[rubl]

With Thailands reservoirs having a capacity of 52 billion cuubs and a projected shortfall of 34 billion cuubs, the question raises if there is sufficient water to be captured if new reservoirs be build. I assume that location of reservoirs depend on rivers present, hilly country side. Furthermore you might not be able to efficiently use reservoirs if you create too many along the same river.

The NorthEast may be into problems as the area may not be able to catch enough water in the rainy season to be sufficient for the drought season. The Mekong river doesn't even carry enough water for boats it would seem.

Maybe small scale, local projects could be more efficient in water use.Also how water is used can greatly influence the need for water.

[mikemac]

"As part of its economic stimulation programme, the government plans cash handouts for farmers."..... Are you kidding me!!!!!......

Yingluck and co. would still be in power today had they just handed cash to the "poor farmers who needed it most" rather than create that monster called the Rice Pledging Scheme which was designed purely to line the pockets of those who needed it the least - politicians, rice millers, storage shed owners etc etc, and be of no benefit whatsoever to the poorest farmers, the ones who can only grow enough for their own use.

[bassman]

Thailand is missing a prime opportunity right now to rebuild their irrigation canal system. With the dams so low what an opportunity to dig, concrete, refurbish and improve the system as in many provinces the tap has been turned off. Instead we are looking at new rail systems across the country.

In my province we were told that the dam would not release water in the dry season whilst the rain season was ending. Most farmers in my locale did not plant their usual second crop, however the damn has been releasing water, which it also released at the peak of rainy season when irrigation was not necessary. Most of the water is inundating unplanted lands, and is always the case those with clout get the water those without the clout do without.

Seems to me that there was an effort to relieve the burden of the mass storage overage of rice being held by the current regime, thus the warning of not planting. Rain across the country last season was not uniform but in my province we received the average amount.

Thailand could well be served by charging a minimal amount for canal discharge, though this might hurt some small holders, it is the "elite" that get the preponderance of the water with small land holders doing without is common. A minimal charge could go to improving the system as well as reducing the waste.

It is a sham to see flooded plains growing nothing when those that are raising alternative crops (corn, cassava, sugar cane and tomatoes) doing without. Thailand has a long way to go in just distribution.