State, private sectors come to the aid of rice farmers amid falling prices

[rooster59]

State, private sectors come to the aid of rice farmers amid falling prices

By BUSINESS REPORTERS 
THE NATION 

 

Farmers in Udon Thani sell packs of rice directly to the public at a market, generating an enthusiastic response from consumers.

 

STATE AND PRIVATE agencies have stepped in to help rice farmers sell their produce amid falling prices, while major retailers are allocating space to farmers free of charge to sell their produce directly to consumers.

 

The Public Warehouse Organisation (PWO) – the state-owned agricultural marketing arm – is allocating about Bt10 million to buy 780 tonnes of Hom Mali rice directly from farmers during the current harvest season, for packing into 1-kilogram bags and distribution to visitors paying their respects to the late King at the Grand Palace.

PWO chairman Kriboon Suadsong said yesterday that the project formed part of the government’s plan to pay respects to the recently deceased monarch, while at the same time helping farmers.

 

Full story: http://www.nationmultimedia.com/news/business/macroeconomics/30299199

 

 

 

-- © Copyright The Nation 2016-11-05

[samsensam]

 

problem solved then.

[grumbleweed]

The skeptic in me makes me think that the major retailers aren't doing this out of the goodness of their heart, while the optimist hopes that it will cut out the middle men who thrive on exploiting the farmers.

 

It's a thin line between necessity and greed, but the cut taken by "agents" is one of the reasons that farmers are having to plant second rice crops and so create the glut we are witnessing now

 

And it's not just on their own doorstep where they're getting screwed. The world's second biggest rice exporter, yet rice farmers are amongst the poorest people in the country.

 

Let's just keep them stupid and they'll never know the truth

[Srikcir]

2 hours ago, rooster59 said:

The Public Warehouse Organisation (PWO) – the state-owned agricultural marketing arm – is allocating about Bt10 million to buy 780 tonnes of Hom Mali rice directly from farmers during the current harvest season

Paying 12,820 baht/ton for paddy rice?

"The market price for Hom Mali (Jasmine) paddy has now dropped to Bt9,700 per tonne, from Bt12,000 previously." http://www.nationmultimedia.com/news/opinion/today_editorial/30298912

(2016-11-02)

 

So about a 30% subsidy and now the government owns the rice that must still be processed, stored, brokered and delivered? Not to mention the potential for corruption within the regime of an unaccountable and nontransparent government. Meanwhile the global market price will remain unaffected and could possible fall further.

 

 

 

[jerojero]

This won't increase demand for rice, but simply provides another source of rice sale to consumers. Retailers will sell less as a result. Net end game zero.