Thaksin defends rice programme
Deposed premier Thaksin Shinawatra says the rice pledging programme should be extended for several more years, rebuffing critics who say the policy has increased government debt and encouraged corruption.
- Published: 25/09/2012 at 12:00 AM
Prime Minister Yingluck Shinawatra implemented the price-support policy to boost the incomes of farmers, whose support helped her Pheu Thai Party win elections last year. The government programme buys rice from farmers at above-market rates.
Thaksin said during an interview in Singapore yesterday that the policy reaps economic gains equal to three times the programme's cost.
"If we manipulate the mechanism for two years, three years, then things will be moving naturally," Thaksin said. "The price of rice in the world market is increasing."
Ms Yingluck's opponents have attacked the policy and alleged the rice pledging programme has cost the government hundreds of millions of baht.
Thailand's fiscal deficit may expand to more than 2% of gross domestic product next fiscal year, up from 1%, because of the rice programme, Thaksin said.
"We do not just throw away the money," Thaksin added.
The programme will eventually lead to higher government revenue through the sale of stockpiled grain and will help cushion Thailand from the effects of the European debt crisis, he said.
"The domestic economy in Thailand accounts for only 30% of GDP growth but now is increasing because people have more purchasing power."
Thaksin said the government has about 17 million tonnes of paddy on hand, and stockpiles of milled rice are estimated at about 4 million tonnes. Sales to Indonesia, Iraq and Ivory Coast, as well as other countries in the Middle East and Africa, will keep reserves down, he said.
"I don't think we have too much because we keep selling," he said, referring to the rice stockpile next year.
The October harvest accounts for about 70% of total output.
The United Nations' Food & Agriculture Organisation said in August that Thailand should be able to retain its position as the world's top exporter, shipping 7 million tonnes this year.
Shipments at that level would mean that Thailand "is still number one, but with a better price", Thaksin said.
"If we were to push to sell to compete with India when they started dumping the rice at that time we probably end up with US$400 [12,400 baht] per tonne. Now it's US$602. We will be doing OK."
The government is targeting exports of 8.5 million tonnes this year, boosted by sales to Bangladesh, China and Indonesia. Sales tumbled 45% to 4.75 million tonnes for the year through to Sept 18, according to the Thai Rice Exporters Association.
Thaksin said the previous government "spoiled" exporters by selling them cheap rice and called on them to become better at marketing.
About 40% of Thailand's 67 million people who depend on rice farming are satisfied with the policy, he said.
According to a July survey by the University of the Thai Chamber of Commerce, about 86.5% of 1,200 farmers polled said that the price-support measures were needed because of high production costs and low prices.
"Please sympathise with them," Thaksin said of the farmers. "They are poor. Let them have a chance to survive in this world, to live a better life."
Meanwhile, appointed senator Jet Sirathananon expressed scepticism yesterday over the government's claim that it had sold 7.32 million tonnes of rice under government-to-government contracts.
The senator said that as far as he knew only one deal claimed by Commerce Minister Boonsong Teriyapirom was secured _ a contract to sell 200,000 tonnes of rice to Guinea.
As for reports of a contract to sell 240,000 tonnes of rice to Ivory Coast, a letter of credit had not yet been opened, he said.
Regarding remaining transactions involving Indonesia, Bangladesh and the Philippines, which reportedly agreed to buy 1 million tonnes of rice each, memorandums of understanding (MoU) had been signed. Mr Jet added that China had yet to decide if it would buy 2 million tonnes.
On Sept 12, Mr Boonsong said that the government had signed contracts with countries including Indonesia and the Philippines to export over 7.3 million tonnes of rice a year. However, both countries have rebuffed the claims.
The chief of Indonesia's rice buying agency, the Bureau of Logistics (Bulog), has said that Jakarta prefers buying rice from Vietnam and India instead of Thailand. The Thai rice costs at least US$100 more per tonne, a report from Oryza News said on Sept 13.
A source in the rice industry yesterday disputed Mr Boonsong's claim that he had ordered authorities to speed up the delivery of at least 2 million tonnes of rice to foreign buyers by year's end.
"If delivery was being prepared, there should be a record of cargo ship booking. There must also be activity in rice sack trading. But the sale of rice sacks hasn't picked up," said the source.
Share your thoughts
- Discussion 1 : 26/09/2012 at 09:16 AM
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Nice englisbob trying to educate people but as we all know some don’t want to learn……
- Discussion 2 : 26/09/2012 at 02:22 AM
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Khun Android #39, virtually, every country in the world is, at one time, is a country full of farmers, then it evolves toward industrialization, because it is the only way to raise standard of living for its people, often measured by income-per-capita. No country can do that remain in farming. The US, Europe, Japan, and even South Korea, and etc, all follow this same economic model, resulting in the same spectacular success. A good case study for is South Korean Economic Miracle. Despite of its war-torn devastating beginning a few decades ago, right after the Korean War, today, the South Korean farmers are now enjoying good income, selling their produce to dynamic and energetic non-farming population, like those work for Samsung, Hundai, and etc. Or do you want to reinvent the wheel?
- Discussion 3 : 25/09/2012 at 11:36 PM
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Disc39 Android - "But always there are a few arrogant and selfish noble elites who look down upon the grassroot people and exploit them by all means they can."
This sentence doesn't make sense. Who is exploiting the grassroots people? According to most sources, the middlemen and millers are syphoning money off from the graft-ridden rice policy. These are not 'noble elites'. Being based in Isaan, the vast majority of them will be Red Shirt supporters and several will be Peua Thai MPs.
You keep imagining loyal, hardworking rice farmers as the backbone of the country. But that's because you live in a fantasy world. Businessmen make Thailand successful - not rice farmers. And the people screwing the rice farmers are your UDD and Peua Thai MPs - not the Dems.
Care to ignore this logic too? Seems to be a habit now.
- Discussion 4 : 25/09/2012 at 09:24 PM
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Feeding everyone nationwide especially the grassroot people to their satisfaction is the most effective measure to manage a large nation of 60 plus million population. But always there are a few arrogant and selfish noble elites who look down upon the grassroot people and exploit them by all means they can.
- Discussion 5 : 25/09/2012 at 06:26 PM
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Why does this newspaper give its space to print anything about TS? Why people still speak of him as though he's still relevant to the running of the Thai government? Does the country depends on his home away from home consultancy? If he's sincerely wanting to go good for Thailand, he can man up, grows some ..., and returns to his birth country, instead of trying to interfere from afar. As long as people still keep talking about him, and newspaer is giving him a platform for his voice to be heard, Thailand will forever be divided.
- Discussion 6 : 25/09/2012 at 06:22 PM
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how can any farmer benifit if he working for the state, and accepts their prices ?
- Discussion 7 : 25/09/2012 at 05:57 PM
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Disc30 Android - "earn trillion bahts of revenue for the country"
Wrong again... This year, exports from farming are likely to be LESS THAN ONE trillion baht.
And that is ALL farmers, not just the lucky, red-voting rice farmers.
Rubber, tapioca, chicken, prawn, fruit and grains are ALL included in that less than one trillion baht, and none of them get the special treatment that rice farmers get. Why?
(I'll give you a clue. It's to do with votes and corrupt Isaan PT MPs)
- Discussion 8 : 25/09/2012 at 05:57 PM
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How much is 25% or 30% on 400 billion?? Thank you, I rest my case your Honor.........
- Discussion 9 : 25/09/2012 at 05:52 PM
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Disc30 Android - Are you still writing the same stuff about Thai rice farmers?
I explained the position to you in a previous post.
I sent you details in a PM (which, by the way, you didn't answer).
Thai rice farmers are a drop in the ocean of Thailand's GDP. They are inefficient, uneconomical and expensive. However, they DO provide a large voting bloc, without which, Peua Thai would be lost.
- Discussion 10 : 25/09/2012 at 05:28 PM
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Thought he was banned , washed his hands of politics , only an advisor ?
Red`iculous sums it up !
- Discussion 11 : 25/09/2012 at 03:22 PM
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Khun Android #30, under Democracy, is everyone, including farmers, equal under the Law? Do you know that if you put someone or some particular group of people above the Law, Democracy will immediately cease to exist? If you think farmers deserve to be put above the Law, for the sake of argument, what's about our hard-working prostitutes in Pattaya? Do you have any ideas how much hard currency their hard labor generates each year? Do they deserve a special privilege too?
- Discussion 12 : 25/09/2012 at 01:12 PM
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Why are you printing what Thaksin wants? He doesn't live here and probably doesn't pay tax.
- Discussion 13 : 25/09/2012 at 12:16 PM
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Thai farmers are the grassroots in society who work hard to provide enough food for the people while at the same time earn trillion bahts of revenue for the country. The PT government rice pledge scheme is meant to reward these farmers' hardship in return. But unfortunately PT's political opponents are tryng to discredit this scheme so as to attain their political benefit.
- Discussion 14 : 25/09/2012 at 11:49 AM
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I,m sure Thaksin doesnt care how badly this program affects Thailand s rice industry as long as he can keep the farmers happy on handouts instead of actually doing something to benefit them long term like allowing them to run their own rice mills .I,m sure the government will be making all sorts of shady deals to try and unload rotting rice in warehouses that we will never hear about .
- Discussion 15 : 25/09/2012 at 11:11 AM
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Thaksin once again showing that he has the business acumen of a dead wombat. If its not insider trading he is less than clueless.
- Discussion 16 : 25/09/2012 at 11:11 AM
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"About 40% of Thailand's 67 million people who depend on rice farming are satisfied with the policy, he said." Wasn't it just 2 days ago YS said majority of the farmers are satisfied? Thaksin seems to have a different statistic.
PTP keeps on lying to the public that they sold rice, no government is stupid enough to over pay rice that costs 30-40% more than the competitor, especially when purchasing in bulk company.
- Discussion 17 : 25/09/2012 at 09:37 AM
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And who do we believe ? This lot, when they say they have signed contracts with two other governments in the hope of getting the detractors off their backs or two other governments who have nothing to gain or lose by their denial of the same supposed signatures ? Where are these contracts ? Show them to us and let us be silenced !
- Discussion 18 : 25/09/2012 at 09:32 AM
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If Mr. Boonsong is right than the whole thing looks more like a scam with the tax payers as the victims; and if there is a sale (in rice) how much is sold and how much will Thailand get from buyers per tonne? We know how much the Government pays but how much do they earn?
- Discussion 19 : 25/09/2012 at 09:30 AM
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Apparently he has never heard of Opportunity Cost or Return on Inventory Investment, both very common business terms and expressions of true profit. Add in inflation and the other overheads and this is tough to support over a 1, 2 or 3 year period. Even simple interest on 100,000,000 over a single year would yield greater than 3,500,000 and the government could get much more than that versus a loss.
- Discussion 20 : 25/09/2012 at 09:23 AM
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"Thaksin said during an interview in Singapore yesterday that the policy reaps economic gains equal to three times the programme's cost."
@Khunbj and Thaksin, if you really believe this, then why is this programme not expanded to cover all other farm products, and industrial products for that matter?
Also, why does the government have to keep the numbers secret. Publish the expenses and the gains Thaksin is talking about (or at least projected gains), and let some economists run the numbers and publish the whole thing. I guarantee if Thaksin could back up his claim with hard numbers, everyone of his critics would support this programme, including me!
- Discussion 21 : 25/09/2012 at 09:06 AM
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Khunbj - D#13: I do believe that you have just proved Englishjon's point. Way to go guy.
- Discussion 22 : 25/09/2012 at 08:51 AM
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"Please sympathise with them," Thaksin said of the farmers. "They are poor. Let them have a chance to survive in this world, to live a better life."
What a hypocrite! You're right Englishjon, absolutely nauseating.
They would have a much more effective chance at a better life if corrupt pollies and bureaucrats (Thaksin and his mob, and the others) paid their taxes and kept their thieving paws out of the cookie jar.
- Discussion 23 : 25/09/2012 at 08:35 AM
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For some one who is not involved in the running of policy Khun Thaksin sure does know a lot about this scheme. I and many are not against improving farmers incomes - what we are against is the destructive means used and the fact that this scheme does not improve farmer's long term ability to increase their income through higher skills and greater productivity or diversification into other crops. That is what we should be spending our money on with thoughfully constructed programmers. This scheme only has impact so long as it continues
- Discussion 24 : 25/09/2012 at 08:30 AM
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I have a hard time believing anything Taxhim says. A man who several years ago promised to relieve the notorious Bangkok traffic situation (in six months) by lifting double parked cars of the road with Sihanouk Army helicopters is not trustworthy to say it politely. He can and say anything without shame.
- Discussion 25 : 25/09/2012 at 08:28 AM
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Khun BJ #9, prior to WWII, 95% of Americans were in farming, today, only 5% of them are farmers, but they still outproduce the rest of all the farmers in the world combined. And the more they produce, the lower is the prices of their crops. So, the USGA has been trying to convince them not to produce too much. They came up with schemes like paying the famers upfront not to plant their fields, so not to flood the market and drive down the prices. With tiny fraction of US population is in farming, the US Govt stills helps them for a reason concerning national (food supply) security. Japan also has similar program going, despite of its limited amount of land. So, using the same American and Japanese playbook, the only way for Thailand to help our farmers is by developing new industries, in order to move labor from farming to non-farming sectors, while improving the productivity of the remaining farmers, so they can maintain the same level of output, translating into higher income-per-capita.
- Discussion 26 : 25/09/2012 at 07:56 AM
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Khunbj: regardless of his education level, gullibility is one trap that englishjon doesnt seem to have fallen into. The same cant be said for yourself and countless others unfortunately, which is why we find ourselves in this position these days.
- Discussion 27 : 25/09/2012 at 07:33 AM
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D12 : Dream on my friend, no corruption with farm subsidies in the US and EU...that's funny. Anywhere in the world where large subsidies or for that matter social services are paid to the public, there will be fraud, that is the nature of people. And Thailand is no exception from that, what they have to do is to reduce it to an absolute minimum and as always if you have specific knowledge of and can prove ongoing corruption then you should report it, because I don't want to pay too much taxes too.
- Discussion 28 : 25/09/2012 at 07:32 AM
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The manipulation is already showing failures. Thailand is much too dependent on this one mono-crop. There are a score of crops which would pay more per rai and are better suited to Thailand's climate and soil. Avocados, hemp, nuts, certain fruits, ....I could specify. Thaksin thinks he can manipulate Thailand's rice market, but it will continue to be a failure. Instead, he should be encouraging a free & open market, and enabling Thai farmers to grow more lucrative types of crops.
- Discussion 29 : 25/09/2012 at 07:14 AM
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"About 40% of Thailand's 67 million people who depend on rice farming are satisfied with the policy, he said."
I understand this the way that 40% of those depending on rice farming are satisfied. What about the other 60%? Is 60 not more than 40? Does it mean that the majority is not satisfied but we still continue? What an idiot!
- Discussion 30 : 25/09/2012 at 07:13 AM
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englishjon : funny isn't it ? your comment shows exactly how poorly educated you are yourself doesn't it ? Deprived of the ability to make an educated argument and only able to come up with the usual phrases, not very impressing at all...you are like many of you here preaching to the choir here, but never contributing to a debate.
- Discussion 31 : 25/09/2012 at 07:11 AM
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D9: your right, but in other countries the money goes to the farmers, in Thialand only a fraction of it does. If the entire cash really went to the poor, people might not have that much objection. Part of my taxes being used to help the farmers is not a problem, but my tax money going into some corrupt pockets is.
- Discussion 32 : 25/09/2012 at 06:50 AM
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"They are poor. Let them have a chance to survive in this world, to live a better life."
It makes me sick to listen to Thaksin talk like this.
He absoultely does not care one bit about the poor or the red-shirts except to cynically use them in his game to make himself richer and more powerful.
He relies on his supporters being below average intelligence - a fact born out by the comments I see by his supporters on this forum.
- Discussion 33 : 25/09/2012 at 06:47 AM
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Using words such as might , may and should , tells us that even he himself has no idea exept for his Red`iculous end game being a possible 3 times the dollars to play with and manipulate , and Thais seemingly believe this dispicable convicted criminal fugitive living his life of opulant luxury abroad in self imposed exile while giving Thai law the middle finger , and who now fires his political shots from behind his little sisters red skirt , banned and all ?
One question , do the shinawatras stand to gain from this and how by how much , besides the obvious joy and support of the farmer ?
Keep your grubby , sticky fingers out of the worlds food bowl and the staple of the poor !
Wake up Thailand your Kingdom is being robbed blind , once again !
- Discussion 34 : 25/09/2012 at 06:39 AM
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The US government support their farmers with 600bn THB per year, UK receives 160Bn THB/year from EU to stay in business, Australia have farm support on the agenda as well ... seem to be the way governments go about farming elsewhere in the world....any reason it should not work in Thailand as well ?
- Discussion 35 : 25/09/2012 at 06:14 AM
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Last time he made such a prediction, the oil prices did not listen to him and Thialand lost tens of billions of baht.....
- Discussion 36 : 25/09/2012 at 05:22 AM
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Why does this fugitive think he has any say in what happens in Thailand? When will he stop the interference? Is he that arrogant to assume the country can not survive without him...
- Discussion 37 : 25/09/2012 at 05:02 AM
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Thaksin seems to think Thailand is in the arrogant position of being the rice market king, throttle supply now, forcing up world prices, sell later, bit like stock market manipulation, is that really a way to do business when third world people's hungry bellies are at stake. This article is full of inconsistencies, Thaksin says the price was $400 but now it's $600, yet sales tumbled 45% and the silos are full. Vietnam keeps producing more and more, India is now selling once more, all we're hearing is unsubstantiated reports of pledges, no proof of sales and real revenues. Eventually they will be able to say they got the right price but forget to mention that there was a 20% spoil in the warehouses. And since when did all 67 million of Thailand's people involve themselves in rice growing. I suspect that if this goes on for a couple more years it will severely backfire and leave the economy on the ropes, becoming Thaksin's biggest negative legacy of all, something he will also evade responsibility for. Given the ramifications I'd rather he just handed out cheques to the farmers with 'vote for me' on the back, less destructive.
- Discussion 38 : 25/09/2012 at 04:54 AM
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Buying your way to power is a time honoured political tradition,especially if you can use other peoples money to boost your vote.The Isan powerbrokers will continue to steal from the Thai taxpayer as long as schemes like this and the money going towards "road repairs", ( which fall apart in just a few years)remain in place.
- Discussion 39 : 25/09/2012 at 04:49 AM
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The only benefit I've seen from this Government is incredible spikes in the price of food and most everything else. Tuna has gone from 30 Baht to 46 Baht, milk from 36 Baht to 44 Baht, and restaurant prices among other things are way up. Ironically these higher prices do not hurt me nearly as much as they hurt the low income people who voted these incompetent crooks into office.
- Discussion 40 : 25/09/2012 at 03:09 AM
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Is he still running the country? And in what capacity?
- Discussion 41 : 25/09/2012 at 02:50 AM
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If only Thai rice is like Middle Eastern oil!
- Discussion 42 : 25/09/2012 at 02:25 AM
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Of course Thaksin defends it. All his partners profit immensely from it. The poor rice farmers only get a little bit, but unfortunately, they are happy with it.