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Peoples Demokratik Republik Of Lanna


StoneSoup

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So - there will be a new nation of farmers sitting around doing nothing?

 

BAAC's new rice scheme: pay farmers to halt crop

 

The state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) is urging the government to introduce a direct subsidy to encourage farmers to stop growing rice for the current second crop. Such...

 

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The PTP has certainly done a great job of reengineereing the economic profile of northern Thailand.

 

Cheers!

SS

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The state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) is urging the government to introduce a direct subsidy to encourage farmers to stop growing rice for the current second crop.

 

Such a move would be aimed at preventing new supply that would add pressure on the already-falling market price.

 

BAAC president Luck Wajananawat said any additional supply would sink paddy prices further.

 

Grains are being sold at a low price now that the market realises Thailand has an enormous rice stockpile and the caretaker government must hasten rice sales to pay more than 1 million farmers.

 

Local paddy prices range from 6,500 to 7,500 baht a tonne for 20% moisture content and 8,000 to 8,500 a tonne for 15% moisture content.

Mr Luck said many developed economies such as the US and Europe offer direct subsidies that prod farmers to grow alternative crops.

Nipon Poapongsakorn, a Thailand Development Research Institute fellow, echoed Mr Luck, saying farmers growing rice for the 2013-14 second crop could suffer greatly from a sharp fall in selling price compared with the pledging price offered by the Pheu Thai-led government, which has run out of authority to buy rice from farmers under the rice pledging scheme.

 

Yingluck Shinawatra's government started the scheme with a pledging price 40-50% higher than market prices in October 2011.

After sharp criticism over the hefty losses incurred, the government last year set a lower price for second-crop paddy of 13,000 baht a tonne, capped at 300,000 baht per household. The second crop runs from March 1 to Sept 30, 2014.

 

Mr Nipon suggested the government set up a committee to separate good-quality rice from subpar rice and destroy the latter to cut supply and boost prices.

 

In related news, Mr Luck said 150,000 farmers who received pledging invoices before last Dec 9, when the House was dissolved, will be paid once the Election Commission allows the caretaker government to use 20 billion baht from the state's contingency budget to pay farmers.

Farmers who got their invoices after Dec 5 will remain unpaid. The government's debt owed to farmers will decline to about 70 billion baht.

 

In a bid to step up raising funds to pay farmers, Surasak Riangkrul, director-general of the Foreign Trade Department, yesterday announced the government had signed a government-to-government (G-to-G) deal with China to sell 1 million tonnes of rice.

The agreement was inked by Mr Surasak and high-ranking officials of the state-owned China National Cereals, Oils and Foodstuffs Corporation during a visit to Beijing this week.

 

The pact covers several types of Thai grains, with delivery due within 12 months. The first shipment of 400,000 tonnes is scheduled between now and July. Thai authorities expect 100,000 tonnes to be shipped in March alone.

Details of the deal's value and the prices paid were not disclosed, as per usual.

 

Charoen Laothammatas, president of the Thai Rice Exporters Association, said the latest G-to-G rice deal is credible since the amount is insignificant compared with China's daily rice consumption of 200,000 tonnes.

 

"The deal, if true, at least gives a good sign to the market," he said. "China will likely buy more Thai rice if it wants to help Thailand, which is now plagued with negative reports about rice."

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Hi,

 

"farmers who received pledging invoices before last Dec 9, will be paid"

"Farmers who got their invoices after Dec 5 will remain unpaid."

 

So, for those who got their invoices on Dec 6,7,8, what is it? Paid or not paid?

 

Sanuk!

 

Friday 6 was a Government holiday for extended weekend HRH Birthday was the 5, 7 and 8 were weekend, offices closed so earliest date to was 9th December. As much as I like to lambast PT at every occasion, which the wife hates, they are correct in this instance.

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