A crazy decision led Thailand to stockpile tons of rice, but everything could be about to change

[webfact]

A crazy decision led Thailand to stockpile tons of rice, but everything could be about to change
Jonathan Garber

BANGKOK: -- In 2011, Thailand was the world's largest exporter of rice, accounting for about 30% of the global market.

But then prime minister Yingluck Shinawatra introduced a controversial rice scheme where the government would pay farmers almost 50% more than market prices.

The idea was that since almost 40% of Thailand's labor force worked in agriculture, then it would make the average Thai wealthier while also creating a rice shortage by taking supply off of the market. In theory, the government would then be able to sell the rice at an even higher price.

Full story: http://www.businessinsider.com/good-news-thailand-rice-stockpile-2016-5

-- BUSINESS INSIDER 2016-05-13

[colinneil]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

[shirtless]

It would have been a great idea except Thailand underestimated its competitors ,,

[JAG]

Everything is going to change - yes, they're going to stock palm oil instead!

[ezzra]

Yingluck did nothing, it's all her brother's doing and thinking, and why would he give a toss to Thailand's throwing money like water if this one day can bring him back home a hero and get him re elected again?.....

[ChrisY1]

"but everything could be about to change" ??

Sorry....can't see that happening....!

[Tatsujin]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

Except those at the bottom of the food chain, the poorer rice farmers themselves, didn't get to see much (if any) of that increase.

Rental costs went up, fertilizer costs went up, transportation, millers, storage, all those costs went up, pretty much wiping out any benefit to the actual smaller rice farmers. Which was the whole point. Some people got (and continue to get) very very very rich, but it wasn't the rice farmers.

[robblok]

Everything is going to change - yes, they're going to stock palm oil instead!

Please post some proof of them stockpiling palm oil at a cost(not price) of around the same amount they pay for the health budget per year.

Because that was what was done.. off books a amount of cost almost as high as the health budget for a year.

If you come up with those numbers Ill tell you I was wrong otherwise.. its a nice diversion.

Seems when I write something about Thaksin in a Junta topic.. i get .. the ehh.. .but Thaksin from the reds.

You deserve an Ehhhh but the Junta now

(to be honest I find it normal to post things comparing junta and Thaksin in topics like this but it seems to be off limits for some reason)

[JAG]

Everything is going to change - yes, they're going to stock palm oil instead!

Please post some proof of them stockpiling palm oil at a cost(not price) of around the same amount they pay for the health budget per year.

Because that was what was done.. off books a amount of cost almost as high as the health budget for a year.

If you come up with those numbers Ill tell you I was wrong otherwise.. its a nice diversion.

Seems when I write something about Thaksin in a Junta topic.. i get .. the ehh.. .but Thaksin from the reds.

You deserve an Ehhhh but the Junta now

(to be honest I find it normal to post things comparing junta and Thaksin in topics like this but it seems to be off limits for some reason)

Never mind - it was a joke...

[fakename]

Lets hope and pray for a drought, and millions of people going hungry, so Thailand can dump a stockpile of rotten rice! Good way of Thai thinking!

[Langsuan Man]

Deutsche Bank says (emphasis added):

It is highly plausible, in our view, that Thailand would take this El Niño episode as an opportunity to clear its huge stockpile and regain market share as shipments of rival exporters will likely be curbed by reduced domestic output.

I wonder if Deutsche Bank factored in the mismanagement in accounting for the "stored" rice, the amount stolen and never delivered in the first place, and of course how much will have been damaged by rodents, vermin, and other "disasters" . Not to mention the exorbitant fees for storage and internal theft

Things always look good on paper, but those of who live here know that what is on the ground is many times at odds with what is reported on paper

[Mook23]

Rice is so passé. My lady friend made suhpagetti yesterday. The pasta was boiled for 15 minutes. Recommended boiling time 7 minutes. Then she added sweet ketchup and chopped hotdog sausage. I see the change is coming!

[robblok]

Everything is going to change - yes, they're going to stock palm oil instead!

Please post some proof of them stockpiling palm oil at a cost(not price) of around the same amount they pay for the health budget per year.

Because that was what was done.. off books a amount of cost almost as high as the health budget for a year.

If you come up with those numbers Ill tell you I was wrong otherwise.. its a nice diversion.

Seems when I write something about Thaksin in a Junta topic.. i get .. the ehh.. .but Thaksin from the reds.

You deserve an Ehhhh but the Junta now

(to be honest I find it normal to post things comparing junta and Thaksin in topics like this but it seems to be off limits for some reason)

Never mind - it was a joke...

An emoticon would have made that clear. But thanks for clearing that up.

[cloudhopper]

It was crazy stupid and one of the many fruits of the combination of ignorance and hubris that have and will continue to plague this culture.

[anon467848]

The farmers didn't get 50% more.... the middle men who buy and sell the rice from the farmers benefited, no surprise there.. The rich get richer, and the poor stay poor, TIT...

[robblok]

It was crazy stupid and one of the many fruits of the combination of ignorance and hubris that have and will continue to plague this culture.

Maybe it was not stupid.. and just vote buying as others suggested. For that part it worked quite well. If they really thought they could have made money from it.. then it was stupid.

Also with the fake G2G deals it was easy to scam off money (too bad the junta took over otherwise they would have gotten away with it).

So maybe it worked as designed.. a way to cheat and get votes. If the loan from China had gone through they could have covered this up. Just tough luck that they went for an amnesty for the master robber and protests followed, that led to the junta taking over.

Had they not tried to get the criminal from Dubai home without punishment things could have looked totally different.

[canuckamuck]

You people just can't see that Yingluck was a visionary. Now Thailand will profit in a drought situation. When Joseph did the same thing The pharoah made him second in command over Egypt.

[JingerBen]

It was crazy stupid and one of the many fruits of the combination of ignorance and hubris that have and will continue to plague this culture.

Maybe it was not stupid.. and just vote buying as others suggested. For that part it worked quite well. If they really thought they could have made money from it.. then it was stupid.

Also with the fake G2G deals it was easy to scam off money (too bad the junta took over otherwise they would have gotten away with it).

So maybe it worked as designed.. a way to cheat and get votes. If the loan from China had gone through they could have covered this up. Just tough luck that they went for an amnesty for the master robber and protests followed, that led to the junta taking over.

Had they not tried to get the criminal from Dubai home without punishment things could have looked totally different.

Good points that would be hard to gainsay..

I don't think it was a combination of ignorance and hubris as much as it was a vote buying scheme - as noted in post #1 by colinneil.

[andrew55]

You people just can't see that Yingluck was a visionary. Now Thailand will profit in a drought situation. When Joseph did the same thing The pharoah made him second in command over Egypt.

I think there needs to be a 'tongue-in-cheek' emoticon. You're gunna get cruelled.

[lovelomsak]

Every cloud has a silver lining.

[smedly]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

additionally - how much of the stockpiled rice was actually grown in Thailand lol

Keep the feet for dancing

[smedly]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

additionally the PTP government ran out of the money for the self funding scheme and a great number of the farmers never got paid, they then attempted to aquire funds through various banks but the banks refused they then tried to push an off budget 2 trillion baht loan through and that was rejected as well, nothing but crooks

now look at the serious household debt in Thailand and as I predicted 3 years ago - the one car scheme - the rice scheme - and even the tablet for schools debacle all designed to buy votes the former two have now left many families in severe debt, I know where I'd be looking for money to help these people out

[IMA_FARANG]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

Except those at the bottom of the food chain, the poorer rice farmers themselves, didn't get to see much (if any) of that increase.

Rental costs went up, fertilizer costs went up, transportation, millers, storage, all those costs went up, pretty much wiping out any benefit to the actual smaller rice farmers. Which was the whole point. Some people got (and continue to get) very very very rich, but it wasn't the rice farmers.

-------------------------------

it may have supposedly intended for the farmers but as always it went not to them...but the middle men to buy there votes.

a familiar story for "democratic governments" including such palces as the U.S. and the U.K. and so called 'price supports".

[dageurreotype]

Yingluck did nothing, it's all her brother's doing and thinking, and why would he give

a toss to Thailand's throwing money like water if this one day can bring him back home a hero and

get him re elected again?.....

There is a Thai word for that 'somcop' - aiding and abetting.

[phoenixdoglover]

I would say it was not the stockpiling that was "a crazy idea"; it was the payment far exceeding prevailing market price. This was the gross distortion that encouraged bad behaviours.

However, it was a bidding war in the run-up to the election, and PTP outbid the Democrats.

As for today, there is still the question for any referendum or general election: who will get the farmers' votes, and why?

[billd766]

It would have been a great idea except Thailand underestimated its competitors ,,

Actually Thailand didn't underestimate its competitors.

The person who devised and pushed the rice scheme did and yet it didn't cost him a single satang.

Why? Because state money was used to pay for the rice and its storage and now Thailand is still paying the price to the whole scheme.

[billd766]

You people just can't see that Yingluck was a visionary. Now Thailand will profit in a drought situation. When Joseph did the same thing The pharoah made him second in command over Egypt.

But but but Joseph was a farang in Egypt though perhaps in those days they didn't meed a work permit.

[soalbundy]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

Except those at the bottom of the food chain, the poorer rice farmers themselves, didn't get to see much (if any) of that increase.

Rental costs went up, fertilizer costs went up, transportation, millers, storage, all those costs went up, pretty much wiping out any benefit to the actual smaller rice farmers. Which was the whole point. Some people got (and continue to get) very very very rich, but it wasn't the rice farmers.

on top of which some of us still haven't received payment from 2013

[soalbundy]

You people just can't see that Yingluck was a visionary. Now Thailand will profit in a drought situation. When Joseph did the same thing The pharoah made him second in command over Egypt.

But but but Joseph was a farang in Egypt though perhaps in those days they didn't meed a work permit.

he was also gay, i remember his coat of many colours

[phantomfiddler]

Yingluck gave farmers almost 50% more for rice than market prices.

only reason for this was VOTE BUYING.

Yes the farmers were paid way over the market price, but only up to a point when the money ran out. They were then paid zilch, leading many to commit suicide. The whole thing was planned to gain votes, in a totally unscrupulous manner, completely unsustainable and, in mathematical terms, a volatile unstable equation !