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Mortgage scheme offered to rice farmers to delay supply to market

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Mortgage scheme offered to rice farmers to delay supply to market

BANGKOK, 24 October 2014 (NNT) – The Rice Policy and Management Committee is launching a short-term mortgage program for rice farmers in some areas in an effort to reduce the amount of paddies entering the market and prevent the price from falling.

Following a meeting of the Rice Policy and Management Committee, chaired by Prime Minister Prayut Chan-o-cha, Permanent Secretary for Commerce Chutima Boonyaprapatsorn revealed that the committee had approved the implementation of a paddy pledging program for farmers within the northern and northeastern regions. The objective is to absorb up to 2 million tons of paddies from the total supply being delivered to the market during the upcoming period.

Under the program, the Bank for Agriculture and Agricultural Cooperatives (BAAC) will pay participating farmers 90 percent of their grains’ market value, or 11,700 baht a ton for sticky rice and 15,400 baht a ton for jasmine rice. Each household is allowed to receive no more than 300,000 baht and pledge no more than 20 tons of paddies. The interest, meanwhile, will be subsidized by the government.

The pledging period will run for four months, from November 1 this year until February 28 next year. If any of the farmers do not redeem their pledged paddies by the deadline, the grains will be kept in the government’s stock and be put up for auction later on. The quality of the rice entered into the program will also be checked thoroughly by the BAAC before their acceptance.

According to Ms Chutima, the market is expected to see around 5-6 million tons of paddies in the months to come, half of which will be for domestic consumption. The amount indicates that price increases are still possible.

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This is double Dutch to me, a mortgage scheme, when you mortgage you use money against your land or house and then you pay back the mortgage in monthly instalments, this is not a mortgage scheme it is a blatant government scheme that pays rice farmers not to farm , question is who in the end pay's , nice try , devious in it's terminology. My opinion: Another un thought out scheme lacking in transparencycoffee1.gif .

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Sounds like the scheme the Democrats had operating when they were in power.

The difference to Yingluck's plan seems to be that the prices are linked to market price (- 10%) and no guaranteed take over by the government. Farmers are free to sell their rice at higher prices somewhere else. Sounds like Pritiyathorn's idea.

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Seems like more BS to me. Most of the small farms don't sell their rice to the BAAC but to private rice-baron-middleman-merchants, and no way will they ever see 15,400 baht for a ton of jasmine rice.

As a point of interest regarding the delay in selling their rice, our neighbours who are regarded as ' big ' rice farmers have had to take their rice to the BAAC/government rice merchant today. Four truck loads so far and it's just 9am. Remember this is last years crop which they have stored nearly all year. This years rice crop is all but ready to harvest which is quite early so it's not surprising the government don't want this years rice yet. Just to clarify why they are regarded as ' big ' rice farmers is that they lend out money and take payment in rice.

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Somehow I just don't understand the scheme or the benefit to the farmer for taking out a loan for 90% of the value of the rice, instead of just selling it to the mill at full price. For sure the Govt. don't know what market value will be as harvest and selling begins, so their current "prediction" may or might not be close to market price.

Especially since this current govt. or the previous govt. are not doing a very good job on following through with the pledges on many different schemes such as drought/flood damaged crops, the current 1,000 baht per rai assistance or even payments to the old folks. I just don't see the Thai farmers real anxious to line up at the BAAC this time to get their payments.

These prices are for Thailand's quality longer season crops, mostly grown during the rainy season. No mention of any deals on the lower value varieties to help stabilize world market prices on those grains.

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Somehow I just don't understand the scheme or the benefit to the farmer for taking out a loan for 90% of the value of the rice, instead of just selling it to the mill at full price. For sure the Govt. don't know what market value will be as harvest and selling begins, so their current "prediction" may or might not be close to market price.

Especially since this current govt. or the previous govt. are not doing a very good job on following through with the pledges on many different schemes such as drought/flood damaged crops, the current 1,000 baht per rai assistance or even payments to the old folks. I just don't see the Thai farmers real anxious to line up at the BAAC this time to get their payments.

These prices are for Thailand's quality longer season crops, mostly grown during the rainy season. No mention of any deals on the lower value varieties to help stabilize world market prices on those grains.

Ever heard the PR slogan? We do this to show that we care about you !

Dog, pony and rice show.

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OMG a quasi Yingluck rice pledge program!

If it fails, ie., costs the nation billions of baht, will the NACC take on the Junta for corruption? wai2.gif

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Somehow I just don't understand the scheme or the benefit to the farmer for taking out a loan for 90% of the value of the rice, instead of just selling it to the mill at full price. For sure the Govt. don't know what market value will be as harvest and selling begins, so their current "prediction" may or might not be close to market price.

Especially since this current govt. or the previous govt. are not doing a very good job on following through with the pledges on many different schemes such as drought/flood damaged crops, the current 1,000 baht per rai assistance or even payments to the old folks. I just don't see the Thai farmers real anxious to line up at the BAAC this time to get their payments.

These prices are for Thailand's quality longer season crops, mostly grown during the rainy season. No mention of any deals on the lower value varieties to help stabilize world market prices on those grains.

Ever heard the PR slogan? We do this to show that we care about you !

Dog, pony and rice show.

Sugar and rice, everything nice.

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If Yingluck was still PM this tread would have 20 pages by now with the usual "vote buying, populist program, crony capitalism, set up for corruption, and we have traced the money to her bank account" rhetoric from the same old posters. Bla Bla Bla.

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Maybe someone can explain this so I can understand it. I am still grappling with the concept of Thainess!

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many people appear to be missing the point here.....................or perhaps I am.

This proposal is designed to delay newly harvested rice coming onto the market - 2 million tonnes to be precise.

The obvious objective is to avoid the rice price falling as the annual rush to sell rice begins.

It appears that the PM is trying to spread to timescale for rice coming onto the market over four months.

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