Steps to prevent drop in rice price

[rooster59]

Steps to prevent drop in rice price

By PETCHANET PRATRUANGKRAI 
THE NATION

 

 

BANGKOK:-- THE Commerce Ministry has come up with short- and long-term measures to prevent rice prices falling during the current harvest season and drive demand for Thai rice in both the domestic and overseas markets.

 

Commerce Minister Apiradi Tantraporn yesterday said the government had agreed on a measure to absorb a combined 12.5 million tonnes of paddy rice from the market by providing soft loans for farmers, cooperatives and rice traders.

The package is aimed at delaying sales of new-crop rice and keeping the output in stockpiles during the main-crop harvest season, which runs from early November through to March.

 

Full story: http://www.nationmultimedia.com/news/business/macroeconomics/30298612

 

 

 

-- © Copyright The Nation 2016-10-30

[anon467848]

How soft is the interest going to be? This govt. measure will cause more household debt....

[Jack Mountain]

Isn't this the same as Yingluck was doing? Store it in warehouses and wait for a better price.

[impulse]

25 minutes ago, rooster59 said:

Commerce Minister Apiradi Tantraporn yesterday said the government had agreed on a measure to absorb a combined 12.5 million tonnes of paddy rice from the market

 

Gotta wonder how much that's going to cost him down the road.

[fruitman]

Do they just throw the rice on that dirty floor? Can they not suck it out of the truck into a silo? Oh wait...TIT...no engineers here.

[KarenBravo]

More about selling the rice stock they have before it gets unsaleable.

[maoro2013]

Government meddling again . They have not got it right previously with rice or rubber and now cassava and now another game with rice. Huh!

[adhd]

thai economics at its best

 

if the price drop of something, just go subsidize it...

 

why not say:  less rice farmers ?

 

ah, always nice to play santa claus to a special interest group with other people's money, and you always cn keep a big handful for yourself

[tbthailand]

The government will allocate Bt85.91 billion in soft loans for traders to purchase paddy rice and stock the produce for between two and six months, with this part of the package targeting 8 million tonnes of rice.
The Bank for Agriculture and Agricultural Cooperatives, meanwhile, will provide soft loans for farmers and cooperatives to purchase rice at no lower than Bt10,000 per tonne, with farmers receiving Bt1,500 in price compensation for produce that is stockpiled in rice barns. 

 

Bottom line, price bought at above market prices and stored.

"Government" loans the money to run the program... 

 

And so when the price cannot be sold at the Bt10,000 level in order to pay back the loans, it will be individuals stuck with the bill. Either the government loan sharks come collecting on motor bikes or the government forgives the loans and ... oops ... loses money.. 

 

[tbthailand]

58 minutes ago, adhd said:

thai economics at its best

 

if the price drop of something, just go subsidize it...

 

why not say:  less rice farmers ?

 

ah, always nice to play santa claus to a special interest group with other people's money, and you always cn keep a big handful for yourself

got no clue about farming and commodity price volatility, eh? 

[Muhendis]

Thought for the day.

 

If the price of rice fluctuates so much for the farmer, how come the price on the supermarket shelves stays the same?

[Srikcir]

2 hours ago, rooster59 said:

soft loans for farmers

Genius idea:

“To help farmers, the government earlier came up with a measure to allocate Bt26.42 billion to provide soft loans for them to stock rice in their barns during the harvest season … This should help absorb about 2 million tonnes of rice from the market.” (2015-10-3)

http://www.thaivisa.com/forum/topic/867030-measures-set-to-stop-rice-prices-falling/?page=1

 

“ … rice farmers in Thailand have called upon the government to release soft loans worth around 40 billion Baht to those who joined the rice plantation integration project so they can have more financial liquidity… Each farmer reportedly needs around 100,000 Baht in loans to increase financial liquidity” (2016-02-01)

http://news.thaivisa.com/thailand/soft-loans-urged-for-thai-rice-farmers/130220/

 

[Brer Fox]

1 hour ago, maoro2013 said:

Government meddling again . They have not got it right previously with rice or rubber and now cassava and now another game with rice. Huh!

It is also the up and coming games that will be of interest. The sugar cane game when/if the contemplated sugar tax comes and the corn game which the government is encouraging rice growers to switch over to.

Reminds me of the old saying that sends shivers down the spine of anyone in private enterprise....."I'm from the government and I'm here to help"

[Emster23]

Adam Smith wept.....

[hawker9000]

Didn't at least a portion of the national rice crop actually go bad while sitting in storage the last time they tried to do this?  (And they tried to sell the bad stuff anyway?)

 

Farm subsidies are a reality around the world.  If they want to subsidize farmers to keep producing more than the markets can absorb without a price drop, well, so be it.   It's the not-so-time-tested theory that they can put away the rice in silos for now to support prices and just keep it in storage indefinitely awaiting better markets that seems to be where they go off the rails. 

[Sydebolle]

Trust me - keep the government out of all this and pricing will regulate itself.

Either Thailand can produce competitively enough to survive in the world's market or has to move on to do different things.

Subsidizing is not the answer. Considering the fact, that they manage only one crop per year (compared to 30 years ago with three crops) there is some writing on the wall.

Remember dinosaur Chavalit Yongchayuth (Big Kiew) with his "Green Isan/อีสานเขียว" project in 1986 who only made him and his cronies rich? Remember Yingluck with the pending legal Sword of Damocles over her and her cronies? 

It's all in the education - albeit possibly too late for Thailand

[fruitman]

Just drop the Thai Baht and the problems are solved.

 

When we store rice in an airtight container the weevils always grow, is that the same in the warehouses?

[bangon04]

Surely it would be cheaper to just lie about the amount of rice available in Thailand?

Maybe tell people that the rice which was put into storage has actually been stolen by chinese middlemen and traders already, or maybe a lot of it never actually existed in the first place - it was only claimed fro a government subsidy. Surely the good people of thailand will believe the government.

[GeorgeCross]

history never repeats but it certainly rhymes

[Alive]

Every massage parlor in Thailand should offer the ancient rice bath which was used hundreds of years ago. It seems to cure all skin problems as the rice draws out impurities. When a foreign female foreign tourist comes she will want to try this wonderful health bath. It'll be slightly expensive as it takes about 10 - 20 kilos of dry rice to make the bath. The warm wet rice is put into a bath tub and then the tourist with the big pockets gets in. One half hour is all it takes for this amazing experience to change your life.

 

 

Maybe next Songkran rice can be thrown instead of water.

 

The Scattering Rice Ceremony which you do while walking around your home chanting ' Win the Lottery' in Thai is also said to have produced lottery numbers many many times. I recommend all Thais to try it.

 

 

[Alive]

Primary schools and high schools could also use rice as an art material. Once colored you can use it with paint or glue to create textured artwork. How many schools are there? Do they throw rice at Thai weddings? Maybe they should start.

[halloween]

5 hours ago, tbthailand said:

The government will allocate Bt85.91 billion in soft loans for traders to purchase paddy rice and stock the produce for between two and six months, with this part of the package targeting 8 million tonnes of rice.
The Bank for Agriculture and Agricultural Cooperatives, meanwhile, will provide soft loans for farmers and cooperatives to purchase rice at no lower than Bt10,000 per tonne, with farmers receiving Bt1,500 in price compensation for produce that is stockpiled in rice barns. 

 

Bottom line, price bought at above market prices and stored.

"Government" loans the money to run the program... 

 

And so when the price cannot be sold at the Bt10,000 level in order to pay back the loans, it will be individuals stuck with the bill. Either the government loan sharks come collecting on motor bikes or the government forgives the loans and ... oops ... loses money.. 

 

Except, it isn't bought, is it?

[jamesbrock]

1 hour ago, bangon04 said:

Surely it would be cheaper to just lie about the amount of rice available in Thailand?

Maybe tell people that the rice which was put into storage has actually been stolen by chinese middlemen and traders already, or maybe a lot of it never actually existed in the first place - it was only claimed fro a government subsidy. Surely the good people of thailand will believe the government.

 

And who will have his personal assets seized when this comes to fruition?

[jamesbrock]

26 minutes ago, halloween said:

Except, it isn't bought, is it?

 

The traders are buying the rice with the government's money, so that means it is bought, doesn't it?

[tbthailand]

14 minutes ago, jamesbrock said:

 

The traders are buying the rice with the government's money, so that means it is bought, doesn't it?

but oooooh, no, no, no, no, no, (little hands twittering in the air) the "government" didn't do it, (that's holloween's position)... it's not their fault if everything goes south but they get the benefit of "helping" the little people, ... even though it will be "the little people" who will be hurt if the price *somehow* doesn't rebound to the 10,000 bhat price.

 

Wonder why the farmers and millers preferred the PTP plan? 

[tbthailand]

46 minutes ago, halloween said:

Except, it isn't bought, is it?

boy, you're a bit thick, aren't you. 

 

of course it is bought. And the plan is designed to screw the people if the price stays weak. It's a stupid, ineffective move by the "government"

[taff33]

Do they just throw the rice on that dirty floor? Can they not suck it out of the truck into a silo? Oh wait...TIT...no engineers here.

They tried silos many years ago it didn't work very well with rice.where was you when this was tried?

[fruitman]

The only way to get me eating more rice is to have more foreign Asian restaurants here. Good Chinese restaurants, take-away drivethrough, Indonesian, Malaysian, Japanese, Indian they all have great dishes but i won't go to a restaurant where i get the Thai treatment (lousy waiters who make much noise, don't speak english, everything goes wrong, expensive, wait next to my table to scoop some rice or fill my glass).

 

In Europe we have great take-away chinese food, very fast served and not expensive, loads of fresh vegy, have parkinglots and even drivethroughs...But the Chinese are much smarter/faster than the Thai.

[fruitman]

37 minutes ago, taff33 said:

They tried silos many years ago it didn't work very well with rice.where was you when this was tried?

 

https://www.google.co.th/search?q=rice+silos&espv=2&biw=1366&bih=638&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjTlPH6uoLQAhUcSo8KHUAHCFIQ_AUIBigB

 

Where was you when the world got access to internet? 

 

 

But why it didn't work well in Thailand? Same reason as why the Police doesn't work well in Thailand maybe?

Edited October 30, 2016 by fruitman

[Xircal]

8 hours ago, Jack Mountain said:

Isn't this the same as Yingluck was doing? Store it in warehouses and wait for a better price.

 

Yeah, and we know what happened to that bright idea. India, Vietnam and other rice producing countries are still eager to jump in again if Thailand makes the same mistake twice: http://thediplomat.com/2015/05/the-rice-and-fall-of-yingluck-shinawatra/