Rice crisis : government’s intervention will cost 42 billions THB

We have now a total budget for the rice subsidy program decided by the government.

42 billions THB (1,3 billion USD).

The government can’t lie anymore : it is a subsidy. A massive one.

It will buy at high price from farmers, and sell at cheap price to the consumers (even though the volumes are still ridiculous, read here).

The government has released a plan to intervene in the domestic rice market, using a budget of 42 billion baht.

Deputy Prime Minister and Commerce Minister Mingkwan Saengsuwan said the government will purchase jasmine rice from farmers at between 19,000 to 20,000 baht per ton, round-shaped rice at 14,000 baht per ton, and sticky rice at 9,000 baht per ton.

He said the rice moisture must remain at 15 per cent, and the state will purchase sticky rice at 7,000 baht per ton if it contains over 25 per cent moisture.

Today, Mingkwan will lift a ban on rice transportation between provinces, in order to allow farmers to sell their stock to all rice mills around the country. Tomorrow he will attend a meeting of the National Rice Policy Committee to design a funding plan for the state’s rice procurement.

Subsequently, the government will purchase rice from growers without limit. (TOC)

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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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