The government may reduce subsidies for sugar and cane farmers later this year in a bid to curb public spending, Prime Minister Abhisit Vejjajiva says. […]
The study showed that subsidising the sugar industry had resulted in significant costs to the public purse.
The study also examined the impact of subsidising products such as rice, tapioca, longan, rubber and dairy goods.
The combined subsidies cost the government about 70 billion baht a year. The sugar and cane sector accounted for about 12-16 billion baht per year.
The cane and sugar industry has not followed market demand for three decades as the government developed a quota system to allocate supply for the domestic and export markets. (Bangkok Post)
Let’s be clear : to stop a system that… runs since 30 years is going to be difficult. That’s the problem with all those Lalapolicies and feel-good subsidies… they create deep market distorsions which are not sustainable on the long run, and very strong habits.
It’s like opium…
By the way It’s rather tasty to hear our dashing Prime Minister speaking about budget discipline and cut in public spendings… when the same PM decided to extend “the free electricity bill, bus and train rides for another three months” (Nation)… That means end of june (march + 3 months).
Total cost ? 4,5 billions THB.
The same people talk to us about impressive GDP growth, recovery, Green Shoots… and meanwhile vow to continue the stimulus policy, the subsidy policy, the “don’t be afraid… everything will be fine tomorrow” policy.
Change ? Yes We Can (But Later).
And the worst is : virtually all the clowns in the world are doing exactly the same… Obama, Sarkozy, Trichet, Bernanke, Merckel, Brown you name them…
It’s not a club anymore : it’s a herd.
But guess what ? Reality dies hard : “unexpected” unemployment figures in the US, “unexpected” bad figures for the house market (new homes and existing homes as well), “unexpected” low figures for equipement demand, “unexpected” revision (up) of unemployment figures in France, “unexpected” budget disaster in Greece, “unexpected” grotesque “austerity” plan that will never be implemented, “unexpected” strikes in Greece, “unexpected” lies…
Eventually : “unexpected stupidity“.
An abundant commodity on this planet.
[I’ll back on line on march 8]