7th rice auction fetches 1.05 billion baht with 1.4 billion baht loss

[Bluespunk]

It's a good thing, thanks to Yingluck, that the farmers needn't worry about any government loss in sales of the rice from the pledge program. They were paid in full at twice market value. What Yingluck didn't pay directly to the farmers during her administration in large part blocked by the EC and Constitutional Court, Prayut honored her obligation to the farmers and paid out the full balance.

The EC didn't block any government payments.

They refused to sanction attempts by PT to buy off the farmers after the election was called. They didn't stop them doing it but made it clear any subsequent legal action would be on PT, not them.

In effect they upheld an election law that a caretaker government can't create debt for an incoming govt.

When the parliament was dissolved so that another election could be held, the government went into "caretaker" status. According to the Constitution, any funds borrowed by the government must be APPROVED by the EC. The EC refused. Yingluck appealed to the Constitutional Court who upheld the EC decision not to allow the government to borrow the funds.

When Prayut overthrew the government, he abolished the constitution and removed the legal constraints that prevented the government from borrowing. He then bypassed the EC and the Court to pay off the rice farmers in the pledge program using 10-year treasury bonds. Now the Ptrayut government holds Yingluck personally accountable for the spent funds.

The EC did not approve it because it would have been illegal to do so.

They didn't block it. PT could have gone a head and faced the consequences of doing so.

[cookee68]

at least they got something back

[Seastallion]

So, now it is clear that the order to farmers to NOT plant a second crop has nothing to do with water scarcity and everything to do with a glut of unsaleable rice in government stores.

[halloween]

So, now it is clear that the order to farmers to NOT plant a second crop has nothing to do with water scarcity and everything to do with a glut of unsaleable rice in government stores.

That they publish water levels in all dams daily, complete with a history going back years, makes your post sound like rubbish.

http://www.thaiwater.net/DATA/REPORT/php/rid_dam_1.php?lang=en

[BSJ]

It's all go with harvesting rice around here. The wifes rice will be harvested in a few days. Some parts of the paddy she will be lucky to get 400kg/rai....down from the 700-800kg expected. The pledging scheme is old news here. It's all about trying to make some profit when the price/ton is down but the price of chemie/fertiliser/seed and the cost of contractors is up! The hoped for 50.000baht profit has been fading away fast!

Hopefully summer corn will be a winner....it there's enough water in the dam!

[sawadee1947]

11 auctions have so far been staged to offload the old rice stock bought under the rice pledging scheme. Altogether 4.66 million tonnes of rice were sold for 50.6 billion baht at a combined loss of 65.2 billion baht.

How odd, very hard to understand how a self funding, well planned and skillfully managed scheme could result in such a calamitous loss. Thank you three times Yingluck. Is it any wonder that PTP couldn't find a bank that would lend money to prop up such a splendid enterprise?

It's easy to understand. If the world's rice prices are falling you can't sell Thai rice for a high price even it might be better quality. There a many other competitors on the market which might have been unknown when set up the rice scheme.

[halloween]

11 auctions have so far been staged to offload the old rice stock bought under the rice pledging scheme. Altogether 4.66 million tonnes of rice were sold for 50.6 billion baht at a combined loss of 65.2 billion baht.

How odd, very hard to understand how a self funding, well planned and skillfully managed scheme could result in such a calamitous loss. Thank you three times Yingluck. Is it any wonder that PTP couldn't find a bank that would lend money to prop up such a splendid enterprise?

It's easy to understand. If the world's rice prices are falling you can't sell Thai rice for a high price even it might be better quality. There a many other competitors on the market which might have been unknown when set up the rice scheme.

If the world's rice prices are falling why would you continue to pay well above value for over 2 years? Would that be negligence, incompetence, or "Who cares, it's not my money?"?

[sawadee1947]

11 auctions have so far been staged to offload the old rice stock bought under the rice pledging scheme. Altogether 4.66 million tonnes of rice were sold for 50.6 billion baht at a combined loss of 65.2 billion baht.

How odd, very hard to understand how a self funding, well planned and skillfully managed scheme could result in such a calamitous loss. Thank you three times Yingluck. Is it any wonder that PTP couldn't find a bank that would lend money to prop up such a splendid enterprise?

It's easy to understand. If the world's rice prices are falling you can't sell Thai rice for a high price even it might be better quality. There a many other competitors on the market which might have been unknown when set up the rice scheme.

If the world's rice prices are falling why would you continue to pay well above value for over 2 years? Would that be negligence, incompetence, or "Who cares, it's not my money?"?

it was not to be expected that other countries as India or Vietnam will get into that business. So the rice scheme was running and could not be stopped according to the plan