Thailand to pump more money into rice scheme

rice farmerDespite all bad news and the fiscal trouble it has caused, the Thai government said its controversial rice pledging scheme will “continue until rice farmers in the country have adequate incomes,” according to a statement by Prime Minister’s Office Minister Varathep Rattanakorn on July 12.

“Government policy is to oversee people in different professions, including farmers, who don’t make enough money. After they’ve been looked after for some time, and a balance is created between income and expenses, then the rice project might  be adjusted or changed,” Varathep said.

Regarding the country’s fiscal discipline and the debt burden that derives from the rice pledging scheme, the minister said the government is considering “fine-tuning”  the scheme’s criteria and conditions, including limiting purchases to 22 million tonnes of pledged rice per year and spending no more than $15 billion a year.

Economists have strongly criticised the rice scheme. Even though the Thai $346 billion economy can technically  handle the expenses, many say they money would better be spent on improvement of the education system and human capital training. While the agriculture sector in Thailand absorbs a large labour force, their productivity is significantly lower than in other industries. Thus, blowing money into an underperforming sector will lead the country nowhere, they say.



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Despite all bad news and the fiscal trouble it has caused, the Thai government said its controversial rice pledging scheme will "continue until rice farmers in the country have adequate incomes," according to a statement by Prime Minister's Office Minister Varathep Rattanakorn on July 12. "Government policy is to oversee people in different professions, including farmers, who don't make enough money. After they've been looked after for some time, and a balance is created between income and expenses, then the rice project might  be adjusted or changed," Varathep said. Regarding the country's fiscal discipline and the debt burden that derives from...

rice farmerDespite all bad news and the fiscal trouble it has caused, the Thai government said its controversial rice pledging scheme will “continue until rice farmers in the country have adequate incomes,” according to a statement by Prime Minister’s Office Minister Varathep Rattanakorn on July 12.

“Government policy is to oversee people in different professions, including farmers, who don’t make enough money. After they’ve been looked after for some time, and a balance is created between income and expenses, then the rice project might  be adjusted or changed,” Varathep said.

Regarding the country’s fiscal discipline and the debt burden that derives from the rice pledging scheme, the minister said the government is considering “fine-tuning”  the scheme’s criteria and conditions, including limiting purchases to 22 million tonnes of pledged rice per year and spending no more than $15 billion a year.

Economists have strongly criticised the rice scheme. Even though the Thai $346 billion economy can technically  handle the expenses, many say they money would better be spent on improvement of the education system and human capital training. While the agriculture sector in Thailand absorbs a large labour force, their productivity is significantly lower than in other industries. Thus, blowing money into an underperforming sector will lead the country nowhere, they say.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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