Thailand Rice Scheme

Rice or Dice. Scheme or Scam! What is that Thailand Rice Scheme? Corruption charges! that will end Yingluck and give her same fate as Thaksin.

The whole idea of that rice scheme was like that, Thai government buy the rice from the farmers above market price. The Thai government hold the rice for a while from the global market. Now, the rice prices will shoot up high. Then, Thai government sell the rice with a high profit.

thailand-riceThailand made money, the Thai farmer made money, The Farang paid more money for the rice. But who cares about the Farang loosing money. The Farang doesn’t vote in Thailand, his vote doesn’t count.

People say that was money to pay for the farmers vote. to keep them loyal to Thaksin.

Who cares, more money for the rice will lift the living conditions for the hard working people in Isan. Will raise their minimum wages. Which is a good thing, to close the widened gap between the workers in the farming sector and the industrial sector. Its all good for Thailand development.  That was the plan, the scheme. Supply and demand.

But that didn’t go well as planned or as predicated. Thailand hold their Rice exports, to increase the price. But, India increases their rice export. Now, Thailand got stuck with tons of Rice in storage no one wants to buy, will get spoiled if not sold with a huge loss. The Thai government paid a 40% up price for a rice that is sitting in the warehouses.

Thailand lost Billions in that Rice scheme. Corruption spread all over. People on Top stealing millions, all the way to the end of the chain where rice was moved from Myanmar and sold to the Thai government for double profit.

The Thai government is loosing billions, The Thai banks affiliated with the opposition stopped the loans so the Farmers turn their back to Thaksin and join the opposition.

The Opposition used the judicial system and forced corruption charges against Yingluck for misuse of power and corruption. Same charges that faced Thaksin before and made him fled Thailand.

The idea of the Scheme was good. Rice monopoly, increase the rice price  make huge profit. Money Flows to the Thai economy. Thailand becomes Dubai. Rice becomes Oil.  Thai rice price was $550 per million tonne almost a year ago with hardly any takers in world market. Thai farmers could not be paid for the high-priced paddy.

Now, the Thai government is desperately selling paddy at a discount of about $300 per million tonnes, just to get rid of the excess supply before it gets spoiled. What a Huge Loss.

Thailand Rice Farmers Scrabble for Credit as Payment for Rice Paddy Is Not Expected until December or January.

There are about 720,000 Thailand rice farmers owed 82 billion baht who are waiting for the government to pay them for their paddy under the rice mortgage scheme.  The managing director of the BAAC told local media farmers may not be paid the money they are owed until December, or January.

A survey by the Bank for Agriculture and Agricultural Cooperatives (BAAC) found that to cover daily expenses, about 29% of rice farmers have taken out loans while 22% have dipped into their savings, about 9% have used credit cards, and about 6% are getting money from other sources.

To continue farming paddy, about two-thirds said they were using credit cards and about 60% said they were borrowing from other sources. Meanwhile about 30% were using their savings and 16% said they were working side jobs.

Makes me wonder, makes me think, How Thaksin comes with that idea. Let me tell you my view. You can agree with it or disagree with it. Its only a a view and its mine.

Thaksin tried to implement the same supply and demand, same control over Rice as the Middle East did with Oil. Oil transformed the desert dwellers to millionaires. Desert became symbolic for skyscrapers and high-rise buildings. All because of Oil.

Thaksin! Thaksin! you lived too long in Dubai. Rice is no Oil. Rice is Rice. You thought one country can take over the Rice  price monopoly. Thaksin, your theory is good. But, you started early. maybe 10 years earlier. Just wait a little bit longer for the food shortage supply and play that supply and demand game.

You tried to make Thailand by itself control the world rice price. Thailand is no Opec.We saw how India backfired. Maybe, next time you should include more top rice producing countries as Opec to control the Rice price.

And of course, never forget the corruption in Thailand is so deep. Millions made from people on Top, all the way to Myanmar where truck loads of rice was moved to Thailand and they were just happy to get double price for their rice.

Thailand’s Finance Ministry has estimated losses from the abandoned rice pledging scheme at around 500 billion baht (around $15 billion). Thailand’s annual GDP is about $365 billion. Farmers pledged rice from five crops beginning 2011-12 main crop (October 2011 – February 2013) to 2013-14 main crop. The government paid 15,000 baht (around $460) per ton, 40-50% higher than the market prices, to farmers under the pledging scheme.

Since the dissolution of the government in December 2013, the scheme began encountering problems with inadequate funds to make payments to farmers. The scheme ended February 2014 after it was not renewed. The government still has to pay about 82 billion baht (around $2.5 billion) to farmers, according the Ministry of Commerce. The Caretaker government is rushing to sell stocks from its warehouses to raise funds and pay farmers.

Who paid for those lost billions?. The Thai Tax Payer money and they are mad and the opposition is igniting the fire.

Yingluck is just confused, Played with from all sides. Used and abused. How or Will you survive that?? Only time will tell and there is no Time left…Time to Go.


2 Replies to “Thailand Rice Scheme”

    1. Comment Approved. No question asked. I read all your Blog. I am impressed. Thanks for taking the time to put your insight and what a valuable one that was. God Bless your Lovely Family. Happy Songkran.

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