B400m to be set aside for pledging

Subsidising the rice pledging scheme for the 2012-2013 crop year is expected to cost the government 400 billion baht.

Prime Minister Yingluck Shinawatra said yesterday cabinet would consider setting aside 400 billion baht for the Commerce Ministry to buy rice from farmers.

Ms Yingluck also pledged to tighten regulations to ensure transparency in the pledging process. She earlier admitted there have been attempts to defraud the scheme.

The next harvest season starts in October.

Ms Yingluck was speaking during her weekly broadcast, which yesterday was delivered from Krabi.

Commerce Minister Boonsong Teriyapirom, who spoke on the programme, said the government was gradually releasing its huge rice stockpile under government-to-government deals. So far 7.3 million tonnes of rice had been sold.

He dismissed a claim the government had declined to sell the rice.

Mr Boonsong said Thailand has signed memorandums of understanding (MoUs) to sell rice to Indonesia, China, Bangladesh, Guinea, Ivory Coast and the Philippines. The rice is expected to be delivered in May-June next year.

''We are selling the rice. There are about 4 million tonnes left in stock. What we are doing is waiting for the right moment,'' he said.

Mr Boonsong said Thailand is likely to retain its status as the world's top rice exporter this year.

On average the Kingdom sells between 8.5-9 million tonnes of rice.

However, he said the government is not concerned so much about its world ranking as the price of rice.

''Farmers should be able to sell rice at higher prices, which is government policy. We are following that policy and the domestic prices have increased,'' he said.

Rice prices on average had soared to US$650 (19,987 baht) per tonne, compared with $590 last year.

''So it isn't right to say the pledging scheme has damaged exports. If it did, that meant we sold less at a cheaper price,'' he said.

Meanwhile, a police investigation into missing rice worth 200 million baht at a warehouse in Nakhon Ratchasima is expected to be concluded in a month.

Pol Col Chanat Kaweekhaochalard, superintendent of Jorhor police station, said about 15 people have been questioned over the missing stocks.

About 1,000 tonnes of pledged rice stored at Thanya Rungruangchai rice mill in Muang district could not be located when the Public Warehouse Organisation did an inspection in June.

The PWO filed a complaint with police accusing two executives of the rice miller, Apicha Prasitanont and Pathitta Prasitanont, of embezzlement.

Share your thoughts

Discussion 1 : 17/09/2012 at 09:34 PM
christianl - "You, and others, might want to read up a bit before getting all righteous about the level of corruption in the rice scheme here." Sorry, I won't stop getting all "righteous" about the level of corruption in Thailand. We're discussing Thailand, on a Thailand forum of a Thailand English speaking paper. Stop being all "righteous" about saying corruption is okay here. It's not. Period.
Discussion 2 : 17/09/2012 at 09:20 AM
brilliant "The Common Agricultural Policy, itself a totally inefficient waste of resources, is riddled with corruption. About 5% of the budget is lost to various frauds, from non-existent tobacco farms to imaginary decontamination plans to deal with Chernobyl. Another 5% is misappropriated. The cost to EU taxpayers is over £5 billion pa." From democracymovementsurry.co.uk You, and others, might want to read up a bit before getting all righteous about the level of corruption in the rice scheme here.
Discussion 3 : 17/09/2012 at 06:51 AM
brilliant Not that I would EVER think that the EU and US systems are corruption free, but sure, probably less so than here. What the story and many commenting seem to focus on is the genreal wastefulness and uneconomic nature of the scheme first and foremost. ANY scheme will be riddled with corruption here in Thailand. So you mean that if there was less charges of corruption connected to this scheme, this article would never have been written, and if it had, the comments here would all be in favour of the scheme and against the author of the article? I don't like this scheme at all, but it's not worse in any way (except for the alleged corruption) than the farm subsidies we have in the EU and the US, which are THE worst and most wasteful EVER.
Discussion 4 : 16/09/2012 at 11:31 PM
christianl - does the EU lose at least 50% of that amount to corruption? Doubt it. People are angry at the massive amounts of money lost to corruption, not necessarily the amount of subsidies. If 95% of it reached the intended farmers it might be different.
Discussion 5 : 16/09/2012 at 11:22 PM
A lot of independent agencies has continue to say the Rice Pledging Scheme is a total failure. Yet the PTP says otherwise, history has also proven that this scheme is not sustainable and full with corruption back in the TRT days.
Discussion 6 : 16/09/2012 at 09:21 PM
Of the EU's total budget, 47 percent goes to farm subsidies. Which is insane. The rice pledging scheme here in Thailand is also insane, only less so since at least a large part of the population in Thailand are farmes. In the EU, it's around 5 percent, and they account for 1.6 percent of generated GDP. 5 percent that gets 47 (!) percents of the total budget in subsidies. The situation in the US is just slightly less wasteful and crazy, but it's guaranteed to be worse than here in Thailand. Do I even need to mention the completely insane corn/ethanol debacle? So, if there are any fellow americans or EU citizens here commenting, when was the last time you showed your outrage, demonstrating in the streets of our home countries? Or even just produced some angry commentary on the internet? About these wasteful and (with the distortions these policies also bring to the agricultural markets around the world, usually hurting poorer countries that actually rely on farming) even immoral policies? If the answer is never, then why all the upset voices here?
Discussion 7 : 16/09/2012 at 08:21 PM
So that was 280 Billion , now another 400 Billion , wow what a scam , i mean sceme , 100% by the phuyai of all the scammers and scemers !
Discussion 8 : 16/09/2012 at 07:50 PM
We all expect our governments to be deeply corrupt (after all, this is Thailand) but PT now look embarrassingly stupid as well as corrupt.
Discussion 9 : 16/09/2012 at 06:56 PM
"Meanwhile, a police investigation into missing rice worth 200 million baht at a warehouse in Nakhon Ratchasima is expected to be concluded in a month." The conclusion might be 'eaten by rats'...
Discussion 10 : 16/09/2012 at 06:53 PM
Discussion 16, The taxpayers should go on the streets not on strike.
Discussion 11 : 16/09/2012 at 06:44 PM
‘Taxes on the Farmer Feed Us All’, sang Ry Cooder; ‘Taxes on Us All Feed the Farmer’, the 2013 Remix Version?
Discussion 12 : 16/09/2012 at 06:02 PM
@bystander, @john49, @ricardo: Like you I pay my taxes in Thailand rightly. The YS government owes us and all taxpayers an itemized account of how the 400 billion baht will be used; and how much does the government get for the millions of tons of rice 'sold' or pledged to be sold to foreign governments. I like the idea of publishing a daily accounting report. Does anyone have an idea how we could put forward this 'petition?' Or will it just fall on deaf ears? I wonder ...
Discussion 13 : 16/09/2012 at 05:36 PM
Well, perhaps the clone will be on the run with the fugitive sometimes from now, if taxpayers money is used for self enrichment beyond the wildest dreams by this goverment.
Discussion 14 : 16/09/2012 at 03:40 PM
With this, the current government has hit rock bottom and is digging...
Discussion 15 : 16/09/2012 at 12:54 PM
You will find a completely different version of the facts at the Thai Rice Exporters Association website where 2 of the biggest of the so called buyers are quoted as saying they have not made any such purchases of Thai rice. More "white lies" perhaps? Besides, the farmers benefit so little from it unlike the millers, politicians, etc. I expect that Yingluck will get back to us soon to explain the discrepancies. One day the country's financial back may break under the burden of this insane, self-serving, populist scheme. There are still 3 years left until the next elections when this scheme will no doubt be promised again. How will Thailand's economy survive with these folks in charge?
Discussion 16 : 16/09/2012 at 12:46 PM
"Mr Boonsong said Thailand is likely to retain its status as the world's top rice exporter this year." Tell that to India.
Discussion 17 : 16/09/2012 at 12:12 PM
It is true many governments help their farmers but they don't pocket half the money for themselves, this is tax payer’s money and Thai have a right to ask questions. Thailand cannot afford such abundant give away without a longer term plan to actual help the farmers.
Discussion 18 : 16/09/2012 at 12:11 PM
Maybe the taxpayers should go on strike for a while and put an end to this madness.
Discussion 19 : 16/09/2012 at 11:24 AM
I know I am dreaming, but wouldn't it be nice to have a weekly report published in the papers outlining exactly how much has been paid out to whom,how much is in storage and where, and how much (quantity & price) has been sold and to whom? This POPULIST policy needs transparency. I know I am only a farang, but I do pay my fair share of taxes in this country and would like to see how these taxes are being spent.
Discussion 20 : 16/09/2012 at 11:10 AM
That's 400,000 times a million Baht. How long is this insane and reckless give away program going to be allowed to continue? The market will always govern, if rice farmers were not making enough money growing rice, than they need to grow something else or get other jobs. Sorry, if that sounds cruel, but that's the way any market economy works.
Discussion 21 : 16/09/2012 at 10:34 AM
To put the amount in perspective that is more than the 350 billion pledged for flood relief, Clearly graft is easier with rice. Or farmers are more important than flood relief,why? because flood relief cannot vote.
Discussion 22 : 16/09/2012 at 09:57 AM
The government not only succeeded in increasing rice prices but also prices of about everything... well done!
Discussion 23 : 16/09/2012 at 09:50 AM
I think they knew when they created this program how bad it was going to be but they wanted to pay out the farmers to get them in their pocket .To do it again is just financially retarded .
Discussion 24 : 16/09/2012 at 09:37 AM
More rope please !.....keep it coming....
Discussion 25 : 16/09/2012 at 09:28 AM
For when the revolt of the Thai taxpayer??
Discussion 26 : 16/09/2012 at 09:14 AM
How much did the man from far away get?
Discussion 27 : 16/09/2012 at 09:03 AM
US Farm Policy & EU CAP Seems like Thailand's not the only one
Discussion 28 : 16/09/2012 at 08:02 AM
what happened to the unaccountable 4 million tonne of rice worth around 20 billion dollars,a huge ammount of money,has it become accountable or is it missing ?
Discussion 29 : 16/09/2012 at 07:28 AM
I wonder for how long Thailand can afford these selfserving populist policies and the attempt to blattantly defraud them by whom ever ? Throw another 400 Billion taxpayer baht at it yingluck , that will fix it , i`m sure ? That`s 680 Billion already thrown at taxsins red nation building fund ? How much do the shinawatras stand to make from this Scam , i mean sceme ? Wake up Thailand , you are being robbed blind !
Discussion 30 : 16/09/2012 at 07:27 AM
why they always say "it cost the government so and so billion of bhat" why not tell the true and say it cost the taxpayers billions of bhat it"s easy to pay with other"s money
Discussion 31 : 16/09/2012 at 06:49 AM
Ms Yingluck also pledged to tighten regulations to ensure transparency in the pledging process. She earlier admitted there have been attempts to defraud the scheme Attempts???? Yingluck you been out in that heat too long...you remember the heat that makes people think crazy things....
Discussion 32 : 16/09/2012 at 06:47 AM
Exact transparency would be better , wouldn`t they think , hmmmm maybe not then ?
Discussion 33 : 16/09/2012 at 06:14 AM
So, how much Thailand government get per tonnne for 7.3 million tonnes sold? Why they cannot say?

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