Govt to continue rice pledging

The government will continue with its rice price pledging scheme, despite calls by economists to end it, because most rice farmers like it, Commerce Minister Boonsong Teriyapirom confirmed on Thursday.

He was responding to comments by an academic at the National Institute of Development Administration (NIDA) that he and his colleagues plan to submit an open letter to Prime Minister Yingluck Shinwatra, asking her to scrap the scheme.

Mr Boonsong said continuing the scheme was not a violation of the charter and the government is not running a rice trading business, as alleged.

The minister said he expected at least 25 million tonnes of rice would be mortgaged by farmers under this scheme by next year.

Adis Issarangkul Na Ayutthaya, dean of the School of Development Economics at NIDA, earlier said that academics at NIDA would jointly submit an open-letter to the prime minister demanding the government put an end to the rice price pledging scheme.

Mr Adis said the government had incurred heavy losses running the scheme and they would launch a campaign to collect signatures of academics in support of their petition.

If there is no response from the prime minister he and his colleagues will consider future action, which might include filing complaints with the Constitution Court or the Administrative Court asking that they order the government to end the price pledging scheme.

The prime minister echoed the comments of the commerce minister, insisting on Thursday afternoon that the government would certainly continue with the rice price pledging scheme, which was aimed at raising farm incomes.

Asked about criticism the government had more or less set up a rice firm to compete with private rice traders and that this was a violation of the constitution, Ms Yingluck said it was not true.

She said the government had no intention to compete with the private sector, or to look for any profit from the scheme, but just to help farmers by enabling them to get a higher price for their rice harvest.

Ms Yingluck said the government will take into account all suggestions and expressions of concern by various parties and improve the rice scheme to ensure transparency in the pledging process.

The government was ready to hold talks with the private sector, to listen to its problems and help find solutions, she added.

The prime minister said farmers deserved sympathy, and the pledging prices set for rice were the highest in the general region.

Private firms can buy rice directly from farmers if they want to, she said.

Deputy Prime Minister Chalerm Yubamrung also gruffly brushed aside the academics' criticism of the rice price pledging scheme as a violation of the charter - which does not allow the state to compete with private enterprise - and financing the pledging scheme as too expensive.

Mr Chalerm said on Thursday the academics were acting like an opposition outside parliament, and their criticism was worthless and lacked credibility.

Share your thoughts

Discussion 1 : 21/09/2012 at 07:49 AM
Ok, so it is not free to support Thai farmers, but what is the real price for the show ? Let's get some data on the table, what amount of rice is being purchased, at which price ? What amount of rice is being exported and to which price ? What is the size of the stockpile of rice and what is the expected sale price ? What is the cost of storing the rice....should be possible to get these data made available so we can have a discussion about what it cost to have this scheme. At the same time we need to know where the money would have come from to support farmers if they had not had this scheme, and the projected cost for that. At the same time list the cost for the kingdom supplying gas/fuel below cost to consumers , support for rubber industry, pineapple and whatever else is benefitting from state support.
Discussion 2 : 21/09/2012 at 06:32 AM
I'm quite sure the farmers do like the scheme! That's democracy fr you, the advice of academics is worthless compared to the opinion of millions of farmers who get a bit extra in their pockets. Now, how about we all refuse to pay our taxes until our money is better spent, personally I like the 'scheme' where I just deduct the VAT from my shopping bill and hand it over directly to my local rice farmer here, far more effective, I'll even happily tell him to vote PTP of it means a more efficient redistribution of wealth.
Discussion 3 : 21/09/2012 at 05:47 AM
Khun Dickemery #2, have you ever wondered why the big-state-socialistic countries, once existed, like the Soviet Unions, along with its Eastern Blog countries, and the Old China went bankrupt not too long ago? Or why Greece is looked more and more like a failed state, or why the US, Spain, Portugal, and Spain are on the verge of economic collapses, despite of bailouts after bailouts? Is it because big Govt economic schemes like this didn't, don't, and will never work? If you think the farmers are excessively taken advantage off by the middlemen, why don't we encourage the farmers to band together, so they can have more bargaining power? Or they can operate their own silos, and mills, in order to earn the most income through vertical integration? If what is going on in the EU and the US, is any indication, the Rice Pledging Scheme will go down in flame, costing everybody arms and legs. Or do you think, we are smarter, and less corruptible people, than those Europeans and Americans?
Discussion 4 : 21/09/2012 at 04:07 AM
All it takes is another big flood like last year, and all the stockpile will be wasted down the drain. The beauty of the Free Mkt system is that it keeps just the right amount of inventory based on level of sales, which reduces this kind of risk to a minimum.
Discussion 5 : 20/09/2012 at 10:32 PM
The rice scheme is a vote buying scam which will result in stock piles of rice rotting in warehouses or given away .What a shame the governemnt has to buy votes with these economy destroying scams instead with winning hearts with smart innovation .
Discussion 6 : 20/09/2012 at 10:21 PM
DomDunn - is that acceptable then? Is the 'reality of politics' a sufficient excuse for ineptitude? Corruption? Cronyism? Blatant abuse of power? When the Dems formed an alliance with smaller parties, they didn't break any laws. They were acting within the 'realities of politics'. So by your own definition, what were the Reds protesting about? Or does the definition only refer to PT actions? Try to defend the rice scheme... And try to see the obvious parallels. Can tax payers now bring guns and grenades to Bangkok in protest at how their money is being used to bribe voters?
Discussion 7 : 20/09/2012 at 09:08 PM
Govt to continue rice pledging Whether you like it or not , allright ! Red`iculous scam , i mean sceme !
Discussion 8 : 20/09/2012 at 09:06 PM
Make the rich richer or help the lower income farmers.
Discussion 9 : 20/09/2012 at 08:47 PM
Makes one wonder how much rice the man from far away produced this year ?
Discussion 10 : 20/09/2012 at 08:46 PM
Dis#1 , though , Scam would be even more apropriate !
Discussion 11 : 20/09/2012 at 08:32 PM
D4 Renaissance: I take your point " that he is hoping that the world prices will magically shoot up" but i am wondering, Why do they want to hoard food? Lets just say, that maybe they do know something. I don't think they have the well being of farmers on their mind. Do you?
Discussion 12 : 20/09/2012 at 08:12 PM
Do not bite the hand that feeds you.
Discussion 13 : 20/09/2012 at 07:35 PM
soltair D3 That's the reality of politics.
Discussion 14 : 20/09/2012 at 07:00 PM
I suspect that someone does not want to admit that his rice mortgage scheme was a blunder; and that he is hoping that the world prices will magically shoot up so that they are equal with the high prices of Thai rice. But if he is wrong again, then Thailand will be on the auctioneer's chopping block at a Fire Sale price after becoming bankrupt. (Maybe a "white" exaggeration!) Not that this will affect his offshore savings, of course.
Discussion 15 : 20/09/2012 at 06:59 PM
Who cares about the votes of academics, the farmers are in much bigger numbers.
Discussion 16 : 20/09/2012 at 06:22 PM
why would they want to change things, buy from of the farmers at bottom price, so to pay of their mortgage,keep them happy, then store at a wharehouse and try and manipulate the highest price, some of the profit go back to the state and their broker who ever that might be , cutting out the other brokers
Discussion 17 : 20/09/2012 at 06:14 PM
Scheme is a good name for it.

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