Thai Government to Buy Bt3.9 Billon Worth of Rice to Prop Up Prices

[webfact]

Thai Military Government to Buy Bt3.9 Billon Worth of Rice to Prop Up Prices

 

BANGKOK – Thailand’s Gen. Prayut Chan-o-cha’s Military appointed government is prepared to spend Bt3.9 Billion to absorb rice during the harvest season from to February.

 

“The measure is aimed at preventing the rice price from falling,” Chutima Bunyapraphasara, permanent secretary of the Commerce Ministry, the NationReported.

 

“The price of rice in the domestic market should average Bt8,000-Bt9,000 per tonne of paddy so that farmers will not get hurt from falling prices when supplies are abundant in the market,” she said.

 

Full story: http://www.chiangraitimes.com/thai-military-government-to-buy-bt3-9-billon-worth-of-rice-to-prop-up-prices.html

 

-- © Copyright Chiang Rai Times 2016-08-05

[davehowden]

Sound familiar ?

[Thailand]

Yingluck's lawyers must be laughing at this one!

[tbthailand]

I imagine that the guys driving the junta-clown-car don't see what is ROFLMFAO so funny about this news.... 

[NongKhaiKid]

35 minutes ago, davehowden said:

Sound familiar ?

I'm sure this is a sound economic decision designed to benefit the nation and is NOT populist in any way  !    

[harada]

Perhaps a few billion baht could be spent on educating farmers into growing alternate crops so that this situation doesn't keep happening. 

[aussieinthailand]

13 minutes ago, NongKhaiKid said:

I'm sure this is a sound economic decision designed to benefit the nation and is NOT populist in any way  !    

Bad NongKaiKid, very, very bad, NongKaiKid,  you know very well that the fan club will be upset with you saying this and at the same time making excuses for the junt's "populist policies" (Opppps, just helping the poor farmers 2 days before the referendum policy) and they are not the same,,,

[ClutchClark]

So the article does not asay that the rice has been bought but rather that the budget has been approved in the event it is necessary. 

 

Also, the government has always bought some rice from farmers to stabilize prices, the Yingluck rice scheme departed from this practice by paying far more than market price to the farmers. 

 

 

[NongKhaiKid]

3 minutes ago, aussieinthailand said:

Bad NongKaiKid, very, very bad, NongKaiKid,  you know very well that the fan club will be upset with you saying this and at the same time making excuses for the junt's "populist policies" (Opppps, just helping the poor farmers 2 days before the referendum policy) and they are not the same,,,

Sorry and I can't find an appropriate  '  hanging head in shame  '  emoticon !

[chiang mai]

This is not that different from the way the Thai government smooths out the cost of petrol/diesel in a normal and stable market, they absorb any cost overage and claw it back when their's  a cost underage, all without affecting the consumer price at the pump. It's a good system that provides price certainty.

[Wilsonandson]

Government buys Thai rubber and makes new roads and bicycle lanes. Hooray!

Government buys Thai rice? Isn't that what the YL government did?

Maybe after they have bought the rice they can sell it on to China for profit.

555

[taichiplanet]

if you do something often enough, one day you'll get it right.

[BigBadGeordie]

20 minutes ago, taichiplanet said:

if you do something often enough, one day you'll get it right.

 

The definition of insanity is doing the same thing over and over again, but expecting different results.

[Eric Loh]

3 hours ago, Thailand said:

Yingluck's lawyers must be laughing at this one!

 

Why they laughing? Was it that the junta government will give the farmers 1,500B a tonne more than the market price for storing their rice as part of the plan that give them the excuse to laugh? Yes, it is hilarious.

[Reigntax]

2 hours ago, BigBadGeordie said:

 

The definition of insanity is doing the same thing over and over again, but expecting different results.

 

Yes. And the definition of a hypocrite is prosecuting someone for doing the exact same as your own intention while pretending it is different.

[Reigntax]

3 hours ago, chiang mai said:

This is not that different from the way the Thai government smooths out the cost of petrol/diesel in a normal and stable market, they absorb any cost overage and claw it back when their's  a cost underage, all without affecting the consumer price at the pump. It's a good system that provides price certainty.

 

Its actually called market manipulation

[Reigntax]

3 hours ago, ClutchClark said:

So the article does not asay that the rice has been bought but rather that the budget has been approved in the event it is necessary. 

 

Also, the government has always bought some rice from farmers to stabilize prices, the Yingluck rice scheme departed from this practice by paying far more than market price to the farmers. 

 

The Yingluck scheme was a variation of the former democrat scheme that provided a minimum price guarantee. You are correct, Thailand has always had some subsidising of agriculture so has every other country in the world.

 

The only difference is that other countries dont allow their military to take control of the country and persecute the overthrown, elected govenment in an attempt to bar any opposition who they fully understand are more capable and supported by the majority than themselves.

3 hours ago, ClutchClark said:

 

 

[ClutchClark]

3 minutes ago, Reigntax said:

 

The Yingluck scheme was a variation of the former democrat scheme that provided a minimum price guarantee. You are correct, Thailand has always had some subsidising of agriculture so has every other country in the world.

 

 

Thanks for confirming this.

 

Maybe it will quiet some of the usual responses by guys who just read the headline.

[williamgeorgeallen]

hope the jaunta gives themselves immunity from prosecution when they cant sell it or sell it as a loss. seriously, am i really reading this?

[Yoram]

To all rotten rice buyers of the world, be prepared to buy 3.9 bn worth of what used

to be good rice, but rotten now, for like a 1,000 baht. offer accepted.

[PatOngo]

Was it a pledge???

[chiang mai]

1 hour ago, Reigntax said:

 

Its actually called market manipulation

 

So? This isn't Kansas and there's no SEC or OFT here, in fact there's no elected government either. Sooo, if they want to price protect the population, insulate them against the vagaries of the market, I say go for it.

[waldroj]

59 minutes ago, williamgeorgeallen said:

hope the jaunta gives themselves immunity from prosecution when they cant sell it or sell it as a loss. seriously, am i really reading this?

 

They have!

 

Section 279 of the Draft 2016 Thai Constitution that Thais will be voting on this Sunday says:

 

All announcements, orders and acts, including the performance of the National Council for Peace and Order or of the Head of the National Council for Peace and Order already in force prior to the date of promulgation of this Constitution or will come into force in accordance with Section 265 Paragraph Two, irrespective of their constitutional, legislative, executive or judicial force, shall be considered constitutional and lawful and shall continue to be in force under this Constitution. Repeal or amendment of such any announcement or order shall be made by an Act, except in case of the announcements or orders of the exercise of executive power in nature, the repeal or amendment shall be made by an order of the Prime Minister or a resolution of the Council of Ministers, as the case may be.

 

All affairs, including the acts related thereto, as recognized by the Constitution of the Kingdom of Thailand (Interim) B.E. 2557, amended by the Constitution of the Kingdom of Thailand (Interim) B.E. 2557, Amendment (No. 1) B.E. 2558 and the Constitution of the Kingdom of Thailand (Interim) B.E. 2557, Amendment (No. 2) B.E. 2559, to be constitutional and lawful shall be considered constitutional and lawful.

 

You would have thought the junta could have at least waited until after Yingluck has been convicted (of negligence over her management of the rice subsidy program) before announcing that they are "...prepared to spend Bt3.9 Billion to absorb (more) rice..."?

[Bob12345]

1 hour ago, ClutchClark said:

 

Thanks for confirming this.

 

Maybe it will quiet some of the usual responses by guys who just read the headline.

The usual responses point out the hypocrisy of the "junta fanboys" who condemn Yingluck doing this, but keep their mouths shut when someone points out the democrats did the same and you don't see them posting now either now the current government is going to do the exact same thing.

 

You also seem to be towing this line:

Quote

Also, the government has always bought some rice from farmers to stabilize prices, the Yingluck rice scheme departed from this practice by paying far more than market price to the farmers. 

By definition they pay more than the market price, otherwise they would not be able to buy anything.

The current government also pays more than the market price, similar as yingluck did.

 

It is therefore the same, only you seem to rationalize it to yourself with the "paying far more", where the arbitrary limit set up by you is that the amount the current government overpays is good while the amount Yingluck overpaid is bad. And that line between good and bad is probably going to move along but the amount the current government overpays so Yingluck is always bad and Prayuth is always good.

[billd766]

6 hours ago, Thailand said:

Yingluck's lawyers must be laughing at this one!

 

 Are the government buying the rice at 50% over the market price as the PTP did?

 

Are they buying it "off budget" as the PTP did?

 

Will there be checks and balances and audits as the PTP didn't?

 

Is 3.9 Bn baht anywhere close to 286 or 500 + Bn baht?

 

To paraphrase many PTP supporters, it is an agricultural subsidy and many countries have them.

 

Do you have the answers for that?

 

The government needs to define exactly who gets the subsidy, how it is paid and also make sure that it is paid.

Edited August 5, 2016 by billd766
to add extra text as an afterthought.

[Eric Loh]

28 minutes ago, chiang mai said:

 

So? This isn't Kansas and there's no SEC or OFT here, in fact there's no elected government either. Sooo, if they want to price protect the population, insulate them against the vagaries of the market, I say go for it.

 

Not sure if they protecting the population or protecting themselves.

 

Whatever the intent, all governments have social contracts and obligated to assist the poor and narrow the inequality through subsidies and other schemes. This is totally acceptable and should not use as political weapon to go after their enemies just because they can.

[billd766]

5 hours ago, NongKhaiKid said:

Sorry and I can't find an appropriate  '  hanging head in shame  '  emoticon !

 

You may find something here but I am not sure if the forum will let you post it.

 

http://www.emoticonsonly.com/tags/1/hanging+head+in+shame.html

 

 

[elgordo38]

6 hours ago, harada said:

Perhaps a few billion baht could be spent on educating farmers into growing alternate crops so that this situation doesn't keep happening. 

You cannot teach an old dog new tricks. 

[heybruce]

From the article referenced in the OP:

 

"The budget can buy almost half of total rice production, or 12.5 million tonnes from the 27.7 million tonnes of paddy expected to be reaped during the 2016-17 harvest season."

 

" A government fact-finding committee on civil liability concerning the scheme earlier disclosed that Yingluck would be held responsible for as much as Bt286 billion in financial damages.

However, Prayut said the financial damages would probably grow because the government still has a huge stock of unsold rice as a result of the scheme, which will incur further losses as the rice spoils.

According to the fact-finding committee, there is still as much as 13 million tonnes of rice in the government inventory as less than 1 million tonnes have been sold."

 

Summary:  With 13 million tonnes of rice in storage the government is budgeting to buy as much as 12.5 million tonnes more while prosecuting the previous PM for buying the first 13 million tonnes. 

 

Also, the announcement to buy the additional rice is made two days before the referendum.  I'm sure that's just a coincidence. 

 

No populism here.

[heybruce]

From the article referenced in the OP:

 

"The budget can buy almost half of total rice production, or 12.5 million tonnes from the 27.7 million tonnes of paddy expected to be reaped during the 2016-17 harvest season."

 

" A government fact-finding committee on civil liability concerning the scheme earlier disclosed that Yingluck would be held responsible for as much as Bt286 billion in financial damages.

However, Prayut said the financial damages would probably grow because the government still has a huge stock of unsold rice as a result of the scheme, which will incur further losses as the rice spoils.

According to the fact-finding committee, there is still as much as 13 million tonnes of rice in the government inventory as less than 1 million tonnes have been sold."

 

Summary:  With 13 million tonnes of rice in storage the government is budgeting to buy as much as 12.5 million tonnes more while prosecuting the previous PM for buying the first 13 million tonnes. 

 

Also, the announcement to buy the additional rice is made two days before the referendum.  I'm sure that's just a coincidence. 

 

No populism here.

Edited August 5, 2016 by heybruce
format correction