China cancels Thai rice deal

China has cancelled a deal to buy more than a million tonnes of rice from Thailand due to a probe into the government's subsidies for rice growers, caretaker Commerce Minister Niwattumrong Boonsongpaisan said on Tuesday.

Mr Niwattumrong said a Chinese state company terminated a contract to buy 1.2 million tonnes of rice.

He said the company was afraid it would run into problems due to an investigation by the National Anti-Corruption Commission (NACC).

The rice scheme is a flagship policy of Prime Minister Yingluck Shinawatra's embattled caretaker government.

Critics say the policy of buying rice from growers at above market prices has accumulated losses of at least $4.46 billion and has been dogged by corruption.

Thousands of farmers have blocked main roads in the provinces to demand overdue payments from the government.

Share your thoughts

Discussion 1 : 06/02/2014 at 06:57 AM
None of them pay 40% over market value though. You're comparing apples to oranges. Or in this case, responsibly bought rice to irresponsibly bought rice.
Discussion 2 : 05/02/2014 at 10:21 PM
Yes, and the USA also has farm subsidies to support its agricultural presence. But not to the extent that they pay 30% or more over market value for the product thereby making it impossible to sell it openly. They also do not completely cut out the middleman and handle the sale of 100% of all product directly thereby eliminating the middle-men and their jobs. They also have transparent records and published results that are hidden by the local government as "National Security "issues. It would be better to teach the farmers 21st century agricultural techniques to improve crop yield and maximize arable land usage.
Discussion 3 : 05/02/2014 at 10:00 PM
The rice-pleging policy is not unique to Thailand. China and Japan implemented similar policy. The policy serves two purposes: (1) to bridge the wealth gap between city dwellers and the rural folks; (2) to achieve food self-sufficiency for the country. Without some form of subsidy for the farmers, wealth gap will get wider and become a trigger for unrest. Also, if people are attracted by better money-making opportunities in cities, there will not be enough people to work in the farms, and the country will face food shortage problems.
Discussion 4 : 05/02/2014 at 07:13 PM
All of these contracts being cancelled just when they are being investigated for corruption the PTP must be running scared.
Discussion 5 : 05/02/2014 at 11:59 AM
it's really true and right. there wasn't any deal between g2g, as per they shown. this 2006/8 thailand was 1st position in rice export but 2009 it's became change and 2011 it's became to 2nd position, and 2013 3rd position and now on 4th may be.. if i am not wrong.
Discussion 6 : 05/02/2014 at 11:16 AM
PTP loan money that will be re-paid by all Thai citizens who pay taxes. The use of this loan to buy rice above market price that cannot be sold anywhere else. Corruption is found in every step of the management process. Even if the whole care taker team leaves the office now, who has to bear the burden of their mistakes? Next government? No. It is us Thai people. We have a right to voice our views because it is our lives and the lives of our children that this inept care taker government is taking away from us. They mortgage our future for their corrupt life styles of luxury. We need stop this bleeding.
Discussion 7 : 05/02/2014 at 11:07 AM
And they're too greedy to give it away to victims of natural disasters such as the recent typhoon which devastated the Philippines. I guess it speaks volumes of the Thaksin regime and it's supporters. What a pathetic bunch.
Discussion 8 : 05/02/2014 at 07:01 AM
The NACC didn't put the farmers in the position they're in. The PTP and the farmer's own greed did. Why don't you stick to "facts_only"?
Discussion 9 : 05/02/2014 at 01:22 AM
Will farmers blame the government, or the NACC?
Discussion 10 : 05/02/2014 at 12:58 AM
I don't think there ever was a rice deal with China.
Discussion 11 : 04/02/2014 at 11:51 PM
It's a whole lot more than $4.46 billion. More like almost $25 billion US. Do you personally go buy all your products at 40% over market? Didn't think so.
Discussion 12 : 04/02/2014 at 10:08 PM
The farmers have become a cheap pawn. Where have you been?. Most businesses, academics, economists and the like have been telling the PTP to dump this policy for over two years. Figures are unavailable from the PTP as they claim the deals are matters of National Security. The Thai rice export groups say little or no rice has been exported. The government won;t allow outside inspection of the warehouses to determine how much is actually out there. The only group stonewalling the termination of this program is the PTO with their elected majority in Parliament.
Discussion 13 : 04/02/2014 at 09:31 PM
The Chinese are afraid the kickback scheme will be exposed….LOL
Discussion 14 : 04/02/2014 at 09:05 PM
Amazing with all these failed policies people still support PTP. Incredible.
Discussion 15 : 04/02/2014 at 08:32 PM
'Critics say the policy of buying rice from growers at above market prices has accumulated losses of at least $4.46 billion and has been dogged by corruption." Critics say - who are they? And why do these "critics" and everybody else not come up with a solution? It is easy to criticize and bitch about something! We are talking about Thai rice here and the lives of often poor farmers - so criticize - but come up with a solution to the problem for the sake of the country and the farmers! Is this still ONE country ?? - or have the farmers just become a cheap pawn for childish, arguing politicians?
Discussion 16 : 04/02/2014 at 07:27 PM
Somehow this will get blamed on the Protest group. Sad..
Discussion 17 : 04/02/2014 at 06:50 PM
Looks like nobody will buy Thai rice, this disaster is going to get a whole lot worse. Millions of tonnes of rice left to rot. The government can't sell it, they can't pay for it and the farmers won't want it back.
Discussion 18 : 04/02/2014 at 06:47 PM
The sponsored european and Indonesian farmers will be happy to have the deal with China. Poor Thailand!! How lies could ruin a country.
Discussion 19 : 04/02/2014 at 06:46 PM
How can you cancel a contact that never existed? More lies from PTP Tying to lay blame on another group for their failures Now PTP will say they have no money to pay farmer because NAAC is investigating PTP/ Yingluck so people are cancelling contracts Bunch of lies
Discussion 20 : 04/02/2014 at 06:41 PM
So, now the failure of the Yingluck and her brother's rice rip-off of taxpayers money will be partially blamed on Chiana.
Discussion 21 : 04/02/2014 at 06:38 PM
Probably just an excuse to explain away this 'phantom' Chinese state company's non-existent purchase.
Discussion 22 : 04/02/2014 at 06:34 PM
Is this the deal which Yingluck is being prosecuted for because it was fake to begin with ?. If it is, then how can they try to lay blame for this on the NACC ?. Given the recent history of government lies, I would be much more inclined to believe this if I heard it from the Chinese. If they wanted the rice, I don't see why they would worry about an internal investigation unless they already know about the corruption - ie they were part of it.
Discussion 23 : 04/02/2014 at 06:33 PM
Yes Charlem. Please show the world that your not the paid lackey of Thaksin. Arrest the corrupted officials that are behind the Rice Scam. They are very close to you so this time you should be able to find them. It shouldn't be like this gambling dens.
Discussion 24 : 04/02/2014 at 06:32 PM
Was there a deal before it was cancel? Can they verify that there was a deal and it was then cancelled? I don't trust this govt. in whatever they say anymore? Are they trying to say that the graft probe triggers the cancellation? Recently there was no evidence that there was any deal, now the ministry says the deal has been cancelled. What is going on?
Discussion 25 : 04/02/2014 at 06:25 PM
The unraveling has started! More to come, and it will be very ugly..
Discussion 26 : 04/02/2014 at 06:22 PM
I remember the posters showing Richard Nixon captioned "Would you buy a used car from this man???"
Discussion 27 : 04/02/2014 at 06:16 PM
The PTP have to acknowledge there is a problem first. When they do they are not going to arrest themselves..
Discussion 28 : 04/02/2014 at 06:08 PM
Why cancels? Was there any deal in the first place? Or it just white lies?
Discussion 29 : 04/02/2014 at 05:54 PM
Khun Chalerm: Please arrest the wrong/corrupted people in rice scheme who let the thousand of farmers in deep trouble.

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