Rice : “government’s intervention doesn’t distort the price”

The Joke Of The Day from Surapong, Finance Minister (and Deputy Prime Minister)…

Deputy Prime Minister and Finance Minister Surapong expresses confidence that the government’s intervention in rice prices will help the price mechanism return to normal and increase profits for farmers.

The deputy premier says the Commerce Ministry’s measure in buying rice from farmers will prevent merchants from taking advantage of the farmers. He also affirms the government’s rice price intervention does not distort the actual price. (PRD)

Okay. I’m going to -try to- decipher :
-prices of rice are going up
-the government sell rice at -20 % of the current price
-this intervention does not distort the prices
-and this intervention “will help the price mechanism return to normal and increase profits for farmers“.

Indeed. It’s the Joke Of the Day.

The ability of thai officials to state blatant counter-truth is breathtaking. 😉

And furthermore, selling 500 tons of cheap rice (read here)… when the consumption of the country is 9,6 millions tons per year… is nothing but a PR operation. And a blatant lie.

Take Malaysia for instance. They just bought 200 000 tons from Thailand (300 000 more to come).

Malaysian Prime Minister Abdullah Ahmad Badawi late Monday announced the country would, for the first time, spend at least 725 million ringgit to subsidise foreign rice imports to keep retail prices of the staple affordable.” (TNA).

Now this is serious subsidie. 😉

And by the way :

The price of Thai rice has swung back to Bt27,000 from Bt23,000 a tonne of paddy regular rice in two days, thanks to the export of a big lot of 200,000 tonnes to Malaysia. (Nation)

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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