Subsidies for agriculture cost 70 billions per year

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]

8 Responses to “Subsidies for agriculture cost 70 billions per year”


  1. 1 antipadshist 26 February 2010 at 3:59 am

    the essence is :

    the whole system of MIDDLE-MEN (and all sorts of brokers) who profit from both buying off the farmers for MUCH LOWER prices than even designated by government, and yet then again benefiting from all sorts of government subsidies etc – now, THAT’S what in reality it is all about !!!

    and the funny thing is : it is hardly and rarely mentioned both by government and by Thai prostitute of a Media !

    yeah, they love to talk about how gov. is oh so kindly giving money ALLEGEDLY to farmers, and how it costs dearly for the national budget.

    but hey – why not CHANGE the whole system so that either to enable farmers to be able to sell their produce themselves, or at very least – to establish a DIRECT link between farmers (REAL manufacturers of agri goods) to, say, gov. itself, or some gov. agency .

    in other words – ELIMINATE once and for good the BLOODSUCKERS who are all those middle men, who in reality fatten on all these 70 billions of subsidies per year !

    and the funniest thing is – these BLOODSUCKERS have a win situation in ANY case !

    the, these 70 billions of subsidies per year nation (and especially the POOR, and those who are hardworking peasants) are the money GIVEN TO / TAKEN BY all those BLOODSUCKERS-MIDDLE-MEN !

    but of course, this will NEVER be admitted or even as much as mentioned by “dashing PM” – because after all he is one of them himself, as well as the figurehead installed for and to insure that this WHOLE SYSTEM of PLUNDERING the country CONTINUES !

  2. 2 Insanity 26 February 2010 at 4:29 am

    The parties (world) that control governments continue to act like we are in the early days of autumn, anticipating a mild winter. They persist in adhering to their conservative and liberal talking point agendas. They continue to push forth more policies like those that put the country/world in its current mess. They govern based upon weekly poll results, not upon what is best for the country/world. Big Government, big Military, and big debt is the mantra of the day.

    The world dream has turned into a nightmare. Led by the selfish, materialistic, self-absorbed elite, the world has degenerated into an individualistic culture of wealth seekers. The world’s common good and attitudes of thrift, hard work, and self reliance have been cast aside for the corporate good, immediate material satisfaction, and entitlement attitude. The world is embracing corporate fascism, benefitting the few.

    WW3, invented by the elite to save the elite looks more and more likely as we slide down the slippery road to Armageddon.

  3. 3 Insanity 26 February 2010 at 4:48 am

    Sultans of Swap – Explaining $605 Trillion of Derivatives!

    http://www.marketoracle.co.uk/Article17469.html

    Quote: “Nothing is actually hidden in all this. It is typically there in the small type footnotes that are extremely difficult to interpret or referenced to a document that is difficult to get your hands on. With enough time and efforts you can get the facts. Also it is incorrect to consider that the actions undertaken are to “evade” laws or regulatory guidelines. They are done to avoid regulatory hurdles.” Unquote.

  4. 4 Insanity 26 February 2010 at 5:07 am

    More Rice (green) Shoots

    WRAPUP 1-Vietnam, Thailand to stockpile rice as prices drop

    http://in.reuters.com/article/domesticNews/idINSGE61O0EH20100225?rpc=401&feedType=RSS&feedName=domesticNews&rpc=401&pageNumber=2&virtualBrandChannel=0&sp=true

    BANGKOK/HANOI, Feb 25 (Reuters) – The world’s top two rice exporters, Thailand and Vietnam, moved aggressively on Thursday to stop local and export sales for a few months and build stockpiles to support prices during their harvests.

    Followed by a probable sharp drop by around November!

  5. 5 In Phuket 26 February 2010 at 12:45 pm

    Fromm CNN:

    “…But current Premier Abhisit Vejjajiva is widely believed to be honest and free from any taint of corruption. He wants to give the country a fresh start by showing no one is above the rule of law and that means ensuring Thaksin isn’t allowed to get away with his alleged corruption, even though he is in exile….”

    I just threw up in my mouth!

    http://edition.cnn.com/2010/WORLD/asiapcf/02/25/thailand.thaksin.shinawatra.explainer/index.html

  6. 6 Pricilla 26 February 2010 at 5:56 pm

    In Phuket, that is a good, why reading mainstream media is a waste of time for actual news, really just for entertainment. Antipadist and Insanity, couldn’t agree more with your posts. The worlds government systems are all about insiders getting their snouts in the public trough. Saw another good one today as well, The Fed is to investigate Goldman Sachs role in Greek currency swaps, gee Goldman must be scared to death!

  7. 7 antipadshist 28 February 2010 at 4:19 am

    Pricilla

    you’re very right of course. you express here my own thoughts exactly and touch upon too deep subject – of the whole financial (monetary) system, which is fake and rotten. the whole thing called “money” is totally wrong. it has been imposed and actually forced upon the majority of world’s population. as long as concept “money” will continue – Fed, GS and other bankers and middle-men will continue profiting, we’ll continue seeing more elaborate shows as “Thaksin money” or Madoff, and crisis will only increase and deepen, with no light in the end of a tunnel.

  8. 8 African Nomad 1 March 2010 at 3:41 pm

    “Vietnam, Thailand to stockpile rice as prices drop”

    Good time to be a weevil. 🙂


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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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