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Govt agrees on price guarantee for rice


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Govt agrees on price guarantee for rice

By Somluck Srimalee

The Nation

 

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The government has agreed to guarantee price in the range of Bt10,000 to Bt15,000 per tonne for five types of rice.

 

 

The decision was reached during a meeting between Deputy Prime Minister and Commerce Minister Jurin Laksanawisit with representatives of rice farmers, rice operators and representatives from the Agriculture and Cooperatives Ministry.

 

The first, paddy rice with humidity at 15 per cent, will be priced at Bt10,000 per tonne with an income guarantee of not more than 30 tonnes per household or not more than 40 rai.

 

The next is glutinous rice, guaranteed a price of Bt12,000 per tonne, for not more than 16 tonnes per household or not over 40 rai.

 

Jasmine rice has been guaranteed a price of Bt15,000, not exceeding 40 rai or 14 tonnes per household. 

 

Fragrant rice outside the area will be assured Bt14,000 per tonne, not more than 40 rai or not over 16 tonnes.

 

Pathumthani fragrant rice has been guaranteed a price not  exceeding Bt11,000, not more than 40 rai or not more than 25 tonnes.

 

“We will start the operation by attending the meeting of the National Commission on Rice Policy [National Rice Policy Committee] to determine the time,” Jurin said on Saturday.

 

The preliminary budget will be discussed at a meeting of the Rice Committee and will be offered to rice farmers registered with the Department of Agricultural Extension. The rice market price will be determined by a subcommittee that will set the criteria and announce the reference price every 15 days. 

 

The parallel measures that will be implemented in production are reduction of production costs, management of fertilizers, medicines, harvest, promoting large agricultural systems or large plots, encouraging farmers to use good quality rice seeds and crop insurance, he said.

 

He added that the committee had also proposed cost saving measures in marketing, production, promotion of organic rice production and GAP rice or rice that has passed cultivation standards. They also proposed promotion of rice production for a specific market The long-term measure is to develop smart farms for farmers with focus on research on technology development and rice production innovation.

 

The meeting also proposed strategic improvements to Thai rice and expanding exports to new markets while maintaining old markets, he said.

 

Source: https://www.nationthailand.com/business/30374919

 

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-- © Copyright The Nation Thailand 2019-08-18
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Bizarre and ridiculous. The real solution here is to wean the Thai people off of this absolutely horrendous crop. If there is one crop in the world that insures a lifetime of poverty, it is the growing of rice. Switch crops should be the government mantra. However, since the government wants to keep the majority poor, it works for them. 

 

They could switch to growing herbs, mushrooms, foreign potatoes, other profitable vegetables, exotic fruits, and so many other crops, that would insure a lifetime of prosperity. Rice is as bad as it gets. It is right up there with Thai potatoes. Bad idea. And government subsidies for rice just mean an artificial market, and the inability to sell the rice without losing money. It deprives the government of much needed funds. Did they not learn anything from the Yingluck fiasco? Who's idea is this? 

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1 hour ago, spidermike007 said:

The real solution here is to wean the Thai people off of this absolutely horrendous crop. If there is one crop in the world that insures a lifetime of poverty, it is the growing of rice.

These latest price guarantees even contradict Prayut's use of market-oriented production principle policy to stabilize the price of rice according to the mechanism - presented in July 2019 by Lt Gen Werachon Sukondhapatipak, Deputy Government Spokesman.

https://forum.thaivisa.com/topic/1111766-govt-uses-production-principles-to-stabilize-rice-prices/?utm_source=newsletter-20190715-0629&utm_medium=email&utm_campaign=news

  • Prime Minister Gen Prayut Chan-o-cha takes heed of rice farmers who want the government to ensure that the price of rice is in accordance with the market mechanism
  • the government’s policy, especially the comprehensive rice production and marketing plan, which is aimed at balancing the demand for rice and its supply, under the principles of market-oriented production, rice price stabilization and enhancement of rice production along with marketing efficiency that regulates the price of rice according to the market mechanism. 
  • The new government will still promote the principle of market-oriented production, and encourage everyone to build an income that can support themselves and their families continuously.

Continuously creating artificial price support mechanisms through government subsidies is contrary to the use of market-oriented production! Prayut says he wants a sustainable benefit for the farmers so farmers "won't be trapped as in the past." Instead he is keeping farmers from the future and assuring economic death by rice

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An article about rice imports to HK exposed a challenge exporting of Thai rice already has - it is over twice the price of Vietnamese rice.

 

A documentary on ChannelNewsAsia, "For Food's Sake" some months ago was investigating the rise of hawker food prices in Singapore and put the "blame" on Thai Hom Mali rice price increases. But being CNA (which at least by my humble opinion makes some of the best researched documentaries on TV) they went on to talk to entire supply chain, down to the farmer and exposed the reasons for the low yield, and following up the chain dismissed many myths about where the money is disappearing.

 

I've found a trailer for it, but I am sure it's possible to find entire episode somewhere on the web. 3 minute trailer: https://www.channelnewsasia.com/news/cnainsider/the-rising-price-of-rice-10974064

 

This is full episode: https://www.channelnewsasia.com/news/video-on-demand/for-foods-sake

 

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10 hours ago, rooster59 said:

The government has agreed to guarantee price in the range of Bt10,000 to Bt15,000 per tonne for five types of rice.

Along with the price fix for rubber.... let the markets dictate the price not the government.

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Now waiting for sugar cane guarantee which is the real source of income in most of the Northeast.

One monoculture exchanged for the other.

Rice has become a marginal product mainly for own consumption.

 

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4 hours ago, spidermike007 said:

1.) Bizarre and ridiculous. The real solution here is to wean the Thai people off of this absolutely horrendous crop. Switch crops should be the government mantra. However, since the government wants to keep the majority poor, it works for them. 

 

2.) And government subsidies for rice just mean an artificial market, and the inability to sell the rice without losing money. It deprives the government of much needed funds. Did they not learn anything from the Yingluck fiasco? Who's idea is this? 

 

1.) Thailand has marginal soil so growing another crop will be difficult unless there is a bigger investment. They should have started with soil rehabilitation generations ago to have avoided the current mess with rice. Rice will grow on anything and it is easy to grow so the most illiterate can grow it. They did try with the Australians to add bentonite to the soils and it doubled the yield in the North East in a large experiment but the government told the farmers they can get it for free and only have to pay for transport.

 

That did not take off as they did not want to pay for the transport. Most of the farms in Thailand tend to be smallholdings so they dont have very deep pockets to do it on their own. They however have to keep them on the farm as it keeps employment high otherwise most of those who are uneducated will have zero income as they dont fit into the formal job market. So its political more than anything else.

 

2.) Many markets tend to be kept alive on subsidies. Wheat as an example in EU farm subsidies, UK farmers get $30 equivalent per ton. This costs taxpayers however it also makes trade in these products impossible to compete with. Not exactly capitalism in the EU either as they export their wheat and corn to countries that cannot compete against their farm subsidies. 

 

 

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17 hours ago, aqua4 said:

 

1.) Thailand has marginal soil so growing another crop will be difficult unless there is a bigger investment. They should have started with soil rehabilitation generations ago to have avoided the current mess with rice. Rice will grow on anything and it is easy to grow so the most illiterate can grow it. They did try with the Australians to add bentonite to the soils and it doubled the yield in the North East in a large experiment but the government told the farmers they can get it for free and only have to pay for transport.

 

That did not take off as they did not want to pay for the transport. Most of the farms in Thailand tend to be smallholdings so they dont have very deep pockets to do it on their own. They however have to keep them on the farm as it keeps employment high otherwise most of those who are uneducated will have zero income as they dont fit into the formal job market. So its political more than anything else.

 

2.) Many markets tend to be kept alive on subsidies. Wheat as an example in EU farm subsidies, UK farmers get $30 equivalent per ton. This costs taxpayers however it also makes trade in these products impossible to compete with. Not exactly capitalism in the EU either as they export their wheat and corn to countries that cannot compete against their farm subsidies. 

 

 

I could not possibly disagree with you more adamantly. The soil in so many parts of Thailand is so fertile, you plant nearly anything and it sprouts up like a weed. At least that has been my experience. There are a dozen alternative crops, that are infinitely more profitable than horrendous rice crops. 

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