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Thailand: Failure Of Rice Pledging Scheme Leaves Huge Financial Burden


Mekong

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Just like the mafia never forgave the Kennedy's, I will not forgive my abridged nightlife schedule back in those, my best, younger days.

 

So I don't like him. But he is looking to me to be better than just going on and on with the usual Thai system, these patronizing elites playing Thais like puppets. Actual democracy is the future of Thailand, and Thaksin is a step in that direction. A dangerous step, yes... but, nothing ventured, nothing gained.

 

Wait so Thaksin is like JFK? And you are like the mafia? ;-) and if his nightlife crackdown was like the by of pigs, so you were like a Cuban freedom fighter shot down as you stormed the beaches of Soi Cowboy... ;-)

 

What is your definition of "Actual democracy"?

 

Thaksin has been clear he cwants a single party system with him as lifelong head, we all know he is corrupt and will create a crony capitalist system where elections are just rubber stamps for whatever he absolutely wants to do. He doesn't respect civil rights, free speech or even human rights, all cornerstones of real democracy. This would only be a step along the way to true democracy if you think hitting a pause button is the same as progress. If he'd put his sister in the PM chair, then who would you expect to take over when he eventually steps down. Anyone want to take bets on what that person's last name will be?

 

This country already has a hereditary head of state, I don't think it needs two.

 

Wait so where is Oswald when you need him?

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Protesters march to support unpaid rice farmers

 

 

post-98-0-88385100-1391758785_thumb.jpg

 

 

 

Thai anti-government protesters show off a long line of bank notes donated by them during a march at Silom, a major business district in Bangkok, Friday. :chinaman:

 

Thousands of anti-government demonstrators marched through Bangkok's main business district to raise money for rice farmers who have not been paid for their crops by the government.

 

About a million farmers are owed more than 100 billion Thai baht (three billion US dollar or 2.2 billion euro) by the government under its rice-pledging scheme, a policy that helped the ruling Pheu Thai Party win the 2011 general election, but has now run out of funds.

 

 

http://www.nationmul...s-30226302.html

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All the doom and gloom but the Thai Baht is hanging in there...

Super Rich (Ratchadamri) Thailand 2014-02-07 07:10 (28 min ago) USD100 THB 32.75 32.75

 

The SET, is in the green,,,

ล่าสุด เปลี่ยนà¹à¸›à¸¥à¸‡ มูลค่า

(ลบ.) spacer.gifSET arrow-up.gif 1,304.67 +9.43 17,102.83 spacer.gifSET50 arrow-up.gif 885.74 +7.47 12,452.22 spacer.gifSET100 arrow-up.gif 1,941.96 +15.95 14,170.60 spacer.gifSETHD arrow-up.gif 1,074.46 +12.10

 

 

 

 

So not much effect on the Thai economy...as of yet...

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Protesters march to support unpaid rice farmers

 

 

post-98-0-88385100-1391758785_thumb.jpg

 

 

 

Thai anti-government protesters show off a long line of bank notes donated by them during a march at Silom, a major business district in Bangkok, Friday. :chinaman:

 

Thousands of anti-government demonstrators marched through Bangkok's main business district to raise money for rice farmers who have not been paid for their crops by the government.

 

About a million farmers are owed more than 100 billion Thai baht (three billion US dollar or 2.2 billion euro) by the government under its rice-pledging scheme, a policy that helped the ruling Pheu Thai Party win the 2011 general election, but has now run out of funds.

 

 

http://www.nationmul...s-30226302.html

 

Flash,

 

Just on my way home from there now, didn't go there intentionally to see this just so happened to needed to pick a couple of things up from Silom complex, arrived just before 12 and it was like that with the marchers heading North up Sathorn, popped out for a smoke at 1 there they were again, same at 2 PM and same at 3.30. It has been going on since 8AM this morning from what I heared from my balcony whilst having morning coffee.

 

Every time they go past the crowds are getting deeper, as one person leaves 2 are taking there place, 15 mins ago there were 1,000 and 500 THB notes forming the chains with 100's hanging off them, amazing sight and a great party atmosphere. As Cavanami (I think) mentioned in this or another thread, this could turn out to be a master stroke by PDRC, Phue Thai standby idly doing nothing where as their proclaimed enemies the "Bangkok Elite" are turning out in their tens of thousands offering support to their time of need.

 

The tide is turning and the noose is tightening around Yingluk's neck!

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Must be why the government is acting frightened ...

 

-------------------------------------------------------------

 

Immigration police have once again issued a warning to foreigners against any participation in the anti-government protests, saying that this could lead to deportation. :nono:

 

The warning comes in the wake of reports that an Indian businessman; Sathit Segal, will be deported for his involvement in the rally and his speech on the protest stage.

 

In the first warning, issued in December, the Immigration Bureau said foreign nationals should not participate in the protests because this was illegal and dangerous. Violations could result in deportation.

 

In the northeast border province of Nong Khai, immigration police put up a sign saying that if any foreigners were found to be involved in the demonstrations, their permission to stay in Thailand could possibly be suspended.

 

 

http://www.nationmul...r-30226325.html

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Just read that haha.

 

I was not taking part in any protest, I know nothing about that, I was told it was some Thai festival called "Yingluck Bpai" and handed over a couple of red notes to the people forming the chain. I was informed it was going to some charity for the impoverished in the North East of Thailand, and being the charitable guy I am, coming to the end of my TET vacation before returning to Vietnam in 2 days time the Thai Baht would be useless to me over there.

 

I could pull that one off actually , I renewed my passport a couple of months back and only have Vietnamese WP exit stamp and only one 30 day permission to stay in Thailand stamp in it :grinyes:

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From "The Boston Globe"

BANGKOK — An ambitious rice-buying program that Thailand’s ruling party hoped would aid millions of its poor rural supporters may instead help bring down the increasingly cornered government.

Hundreds of farmers from more than 10 provinces converged Thursday on the capital to demand rice payments that are several months overdue after the policy caused ruinous losses. Some have blocked three main highways in the north and the west, while a few hundred in the ruling party’s northeastern heartland protested at a provincial government hall.

With the help of populist policies such as the rice pledging scheme, Prime Minister Yingluck Shinawatra’s party won a landslide election victory in 2011. But it suffered a self-inflicted and crushing setback late last year by attempting to give amnesty to Yingluck’s elder brother, Thaksin Shinawatra, so he could return to the kingdom without serving prison time for a corruption conviction.

Ousted as prime minister in a 2006 coup, Thaksin is a highly polarizing figure, beloved in the countryside and loathed in the capital, Bangkok, where military, palace, and old money cliques have traditionally held sway over the nation.

he rice crisis comes at a difficult time for the government, which is reduced to a caretaker administration after street protests sparked by the amnesty bill forced new elections. Official results of the Feb. 2 vote may not be announced for months after protesters in Bangkok prevented some polling places from functioning, requiring by-elections. The government is also facing numerous court cases and investigations that could result in it being deposed judicially.

Now the ruling party faces the risk that the bedrock of its support, farmers, will turn against it.

‘‘We are going on the streets because we’re facing a dead end,’’ said Sombat Roek-anan, a farmer from Ayutthaya province, a stronghold of the ruling Pheu Thai party. ‘‘The farmers used to be 100 percent behind the government before the rice scheme, but now it’s 50-50.’’

Rice is Thailand’s staple grain and one of its main exports. In hopes of boosting rice prices and increasing rural incomes, the government bought harvests from farmers at about twice the price prevailing in global markets. The program backfired when the Commerce Ministry had difficulties selling the grain overseas as rival exporters such as Vietnam undercut it.

Losses from rice pledging have swelled to $4.46 billion since the policy was started in 2011, and in a blow to national pride, Thailand lost its spot as the world’s top rice exporter in 2012, surpassed by India and Vietnam. The policy also underlined a deep division in Thai society, with Bangkok’s white collar classes resenting the largesse directed at the rural poor.

Subsidizing rice has caused ‘‘tremendous losses’’ to the Thai economy, said Somkiat Tangkitvanich, president of Thailand Development Research Institute, a Bangkok think tank. ‘‘Most importantly, this scheme cannot help the farmers in a sustainable way.’’

Critics also say the policy lacks transparency, has been dogged by corruption and smugglers, and benefits farmers with large land holdings rather than poor small farmers. The International Monetary Fund last year called on Thailand to drop the subsidies.

The government’s caretaker status restricts its options for raising funds and it is struggling to find $3.9 billion to pay farmers for the current crop year. It is not selling enough of the grain overseas and Thai banks have refused to lend to the Finance Ministry, which oversees the Commerce Ministry’s funding for rice purchases.

Hundreds of employees at Krung Thai Bank protested earlier this week, urging executives to veto loans to the government.

In another blow, a Chinese state enterprise this week canceled a deal to buy 1.2 million tons of Thai rice due to a probe by Thailand’s graft police.

The Thailand Development Research Institute says the only solution is for the government to dump the rice on the world market to pay more than a million farmers.

Such a move could invite the ire of neighbors such as Vietnam and risk a battle at the World Trade Organization as other rice exporting nations seek remedies for damage to their trade. But the political risks of letting the late payment situation fester might force the government’s hand.

http://www.bostonglobe.com/news/world/2014/02/07/thailand-policy-aid-rice-growers-backfires/kh89zBxnYBoW6LQN8IOqxL/story.html

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