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

[geovalin]

12,000,000 tonnes x 8,000 thb = 96,000,000,000. not 3,900,000,000

[MissAndry]

2 hours ago, elgordo38 said:

You cannot teach an old dog new tricks. 

 

The government already tried that, and all the farmers who followed their advice with the alternative crop took a huge financial hit.

Edited August 5, 2016 by MissAndry

[Baerboxer]

11 hours ago, Wilsonandson said:

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

 

Er, is this also being touted as a self financing scheme? Are farmers actually being paid this time? Are loads of millers, middle men, local officials, transport companies, warehouse owner being allowed to pocket large amounts of money from it?

 

They might indeed sell it to China but probably won't develop a fraud to claim fictitious export orders and then try and sell it back into the home market and defraud the treasury like certain others have been charged with.

 

But hey, don't let the reality of detail get in the way.

[atsiii]

16 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. 

 

 

 

But, sincere question: if one (or a government) puts a big sum of money out in the form of a limit buy order, the purpose for which is to artificially keep the market prices at current levels, is that not the same as paying far more than market price?  Obviously if the limit buy order was not there, the market price would drop significantly.  That's the whole purpose of advertising such a multi-billion THB limit buy order.  Well, that, and obviously to garner popular support right before a vote.

 

It is just another example of why there is no such thing as a 'free market' anywhere in the world.