Farmers rush to sell rice before new pledge price takes effect

Farmers across Thailand are speeding up harvesting their rice to sell it to rice mills before the government’s rice pledging price cut from Bt15,000 to Bt12,000 per tonne takes effect at the end of June.
Farmers are worried they might not make profits, for the weather forecast predicts heavy rain until the end of the month.
The cabinet acted to slash the rice subsidy from Bt15,000 to Bt12,000 per tonne, effective June 30, and set the ceiling for rice purchases at Bt500,000 from each farming household.
Governors nationwide are meeting with local rice mill owners and managers to check their stocks and create understanding among them.
In the northern province of Phitsanulok, farmers have been selling their rice to 25 local rice mill operators from nine districts ahead of the deadline as they fear rice prices may fall due to the predicted heavy rain.
Meanwhile, farmers in Thailand’s northeastern province of Maha Sarakham also moved their paddy for sale at local rice mills for the current rice pledging price at Bt15,000/tonne.
Lamun Sipongying, a farmer in the provincial seat, said the rice mill where she sold her paddy today gave her Bt11,000/tonne of rice. She said that her rice was cheaper from the current pledge price at Bt15,000 because the value of the rice was deducted due to moisture in the grain. If the government is to lower the price guarantee to Bt12,000/tonne, she then fears that she will earn almost no profit. (MCOT)

Minister stands firm on new pledging price of paddy

Commerce Minister Boonsong Teriyapirom is so far standing firm that the government’s decision to reduce pledging price for paddy by Bt3,000 per tonne will remain unchanged.
The cabinet has decided to slash the rice subsidy from Bt15,000 per tonne to Bt12,000 per tonne, effective June 30, and set the ceiling for rice purchases at Bt500,000 from each farming household.
The commerce minister’s insistence came on the heels of protests in a number of provinces by farmers against the government’s decision.
The prime minister has instructed agencies concerned to look into farmers’ rice production costs, including fertilizer and seed, while the Bank of Agriculture and Agricultural Cooperatives will extend loan payment terms and lower interest to farmers, said Boonsong.
The pledging price of Bt12,000 per tonne is for paddy in the 2012/2013 second crop while the price for the 2013/2014 annual harvest season will be decided soon.
The commerce minister said a decision must be made within next month on the new pledging price as farmers will start planting late next month for harvest in early October.
Farmers should know the pledging price before they begin their rice cultivation for the new season, he said, reassuring that the new price will be appropriate and profitable for farmers.
Boonsong welcomed the Thai Chamber of Commerce’s proposal to ask the private sector to help distribute rice from the state stockpiles.
The Foreign Trade Department was also instructed to find ways to release rice from the pledging scheme after several international trading companies have contacted the government to buy the grain, he said. (MCOT)

Thai opposition firm on ending rice pledging scheme

Thailand’s opposition Democrat Party has repeated its call for the government to withdraw the controversial rice pledging scheme, insisting that mounting losses will definitely be at least Bt240-260 billion.
Democrat leader Abhisit Vejjajiva said the cabinet’s decision to reduce the pledging price for paddy from Bt15,000 per tonne to Bt12,000 per tonne is not a solution to the problems of heavy losses and corruption.
The government can announce other measures such as guaranteeing farmers’ revenue to assist them, he said.
The former prime minister said the opposition’s insistence that the scheme will inflict heavy losses has become real and the government’s admitted losses of Bt136 billion were only from the 2011/2012 harvest season.
The figure excludes losses in the 2012/2013 annual crop, Bt35 billion in expenses and interest allocated to the Bank of Agriculture and Agricultural Cooperatives, and other relevant expenditure.
Total losses of Bt2.4-2.6 billion, earlier predicted by the Democrat party, are confirmed by state agencies, he said. (MCOT)

Deputy PM Kittiratt optimistic as Fed eyes end to stimulus

The US withdrawal of monetary stimulus through quantitative easing (QE) will not inflict a heavy blow on Thailand thanks to the country’s high foreign reserves and liquidity, Deputy Prime Minister/ Finance Minister Kittiratt Na Ranong said last week.
The Thai stock and gold markets plunged as the baht weakened to Bt31 against the greenback after the US Federal Reserve’s announcement on QE.
Kittiratt said the Bank of Thailand (BoT) was instructed to ensure that the exchange rate volatility and capital outflow will not have a negative impact on the baht.
Pongpen Ruangvirayuth, BoT deputy governor, predicted an increased outflow of foreign capital but promised that the central bank would closely monitor the movement.
She said the private sector should be on alert for abrupt changes in exchange rates. The Thai currency closed at Bt31.13/15 against the dollar last Friday.
Charamporn Jotikasthira, president of the Stock Exchange of Thailand, said the Thai bourse was down in tandem with global and Asian stocks but reassured that the Fed’s announcement on QE will not affect the Thai economy’s strong fundamentals.
Domestic gold prices changed 15 times Friday, June 21, to close at Bt19,150 per baht weight, down Bt800, as investors were instructed to be extra cautious as the global price may drop from US$1,300 per ounce to US$1,250 per ounce, or at about Bt18,500-18,000 per baht weight. (MCOT)