Reducing government spending in Thailand by reducing costly sugar subsidies
By Jon Fernquest
The
price of sugar is set to rise in the near future (Read
previous articles #1 and #2).So the Thai government sees this as an opportune time to cut back on costly sugar subsidies.
Today's article begins after the vocabulary.
X set to Y - Y will
very likely happen to X in the near future (price is set to rise, the
schedule is set to change, the stock index is set to rise in the near
future)
an opportune time - the right time to do something (the time most likely to lead to success)
cut back - reduce
subsidies - when the government pays part of the cost of some activity to encourage it เงินช่วยเหลือจากรัฐ เงินช่วยเหลือ เงินสนับสนุน
an opportune time - the right time to do something (the time most likely to lead to success)
cut back - reduce
subsidies - when the government pays part of the cost of some activity to encourage it เงินช่วยเหลือจากรัฐ เงินช่วยเหลือ เงินสนับสนุน
Economics
Govt to cut sugar and cane subsidies to save public funds
25/02/2010Chatrudee Theparat
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.
Mr Abhisit yesterday said he supported the findings of a study by the Thailand Development Research Institute (TDRI) which recommended that subsidies for cane and sugar be altered later this year when the Cane and Sugar Fund should be free of debt.
cane, sugar cane - sugar plants
before they are turned into sugar in a sugar mill (See Wikipedia)
sugar mill - a factory that turns sugar crops into a good that can be sold in stores and consumed
subsidies - when the government pays part of the cost of some activity to encourage it เงินช่วยเหลือจากรัฐ เงินช่วยเหลือ เงินสนับสนุน
funds - an amount of money kept for a special purpose กองทุน
public funds - government money kept for special use or project
bid - an attempt to do something ความพยายาม
curb - stop or reduce ลดหรือยุติ
public spending - government spending
findings - the results or conclusions of an investigation or research
altered - changed
debt - an amount of money that you owe หนี้
free of debt - having no debt (borrower does not owe money to lenders anymore)
sugar mill - a factory that turns sugar crops into a good that can be sold in stores and consumed
subsidies - when the government pays part of the cost of some activity to encourage it เงินช่วยเหลือจากรัฐ เงินช่วยเหลือ เงินสนับสนุน
funds - an amount of money kept for a special purpose กองทุน
public funds - government money kept for special use or project
bid - an attempt to do something ความพยายาม
curb - stop or reduce ลดหรือยุติ
public spending - government spending
findings - the results or conclusions of an investigation or research
altered - changed
debt - an amount of money that you owe หนี้
free of debt - having no debt (borrower does not owe money to lenders anymore)
This would allow the government to cut its spending by reducing the level of assistance to farmers.
The study showed that subsidising the sugar industry had resulted in significant costs to the public purse.
assistance
- help (given to someone)
significant - important สำคัญ
public purse - government spending
significant - important สำคัญ
public purse - government spending
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. The Cane and Sugar Fund was also set up to provide financial assistance to farmers.
impact
- an effect or influence ผลกระทบ
tapioca - cassava, an important food source of carbohydrates, also source of ethanol car fuel (See Wikipedia) มันสำปะหลัง
longan - a fruit (See Wikipedia)
dairy - milk and foods made from milk such as butter, cream, and cheese
sector - a part of a country's economy or business activity ภาคเศรษฐกิจของประเทศ
demand - the need and desire to buy goods and services by households and businesses
decades - periods of ten years เป็นสิบๆปี
quota - the limited quantity that is officially allowed (for example, an import quota for clothing from an exporting country )
allocate - to officially give out an amount of or share of something แบ่งส่วน
domestic - ในประเทศ within the country
provide - to give someone something that they want or need
financial assistance - helping by giving money
tapioca - cassava, an important food source of carbohydrates, also source of ethanol car fuel (See Wikipedia) มันสำปะหลัง
longan - a fruit (See Wikipedia)
dairy - milk and foods made from milk such as butter, cream, and cheese
sector - a part of a country's economy or business activity ภาคเศรษฐกิจของประเทศ
demand - the need and desire to buy goods and services by households and businesses
decades - periods of ten years เป็นสิบๆปี
quota - the limited quantity that is officially allowed (for example, an import quota for clothing from an exporting country )
allocate - to officially give out an amount of or share of something แบ่งส่วน
domestic - ในประเทศ within the country
provide - to give someone something that they want or need
financial assistance - helping by giving money
The subsidies drive the industry's growth by lifting yields and total sugar output, which has risen to 80 million tonnes from 20 million over 30 years.
But they also distorted the market and resulted in the fund being mired in debt as farmers failed to pay back loans.
TDRI president Nipon Paopongsakorn said a scheme like the new price insurance scheme used with maize and tapioca crops should replace sugar subsidies.
drive
growth -
cause growth
yields - how much crop a farmer gets from farming one hectare of land ผลผลิต
distorted the market - caused prices to not be set by supply and demand anymore
mired in debt - must pay back a lot of money that you borrowed (debt) (like being stuck in mud or "mired" in mud)
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
insurance - a system of protection against loss, a person pays money every month (premiums) for a guarantee that the company will pay them money if they or their property is damaged or lost (See Wikipedia) การประกันภัย crop insurance
insurance - making regular payments in exchange for a large payment to cover damage if a certain bad event happens (accident, sickness, fire, natural disaster) (See Wikipedia)
maize - a tall plant grown in many parts of the world for its yellow seeds which are eaten as food, made into flour or fed to animals ข้าวโพด
replace - to get rid of someone or something, and to put a new person or thing in its place เลิกให้และนำสิ่งใหม่มาใช้แทน
yields - how much crop a farmer gets from farming one hectare of land ผลผลิต
distorted the market - caused prices to not be set by supply and demand anymore
mired in debt - must pay back a lot of money that you borrowed (debt) (like being stuck in mud or "mired" in mud)
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
insurance - a system of protection against loss, a person pays money every month (premiums) for a guarantee that the company will pay them money if they or their property is damaged or lost (See Wikipedia) การประกันภัย crop insurance
insurance - making regular payments in exchange for a large payment to cover damage if a certain bad event happens (accident, sickness, fire, natural disaster) (See Wikipedia)
maize - a tall plant grown in many parts of the world for its yellow seeds which are eaten as food, made into flour or fed to animals ข้าวโพด
replace - to get rid of someone or something, and to put a new person or thing in its place เลิกให้และนำสิ่งใหม่มาใช้แทน
It [a price insurance scheme] will help reduce the burdens on all related parties including farmers, as well as sealing loopholes for corruption," said Dr Nipon.
More than 400,000 farmers are signed up with the maize price insurance scheme, compared with the 80,000 who benefited from the previous subsidies. More than 400,000 tapioca farmers also benefit from the new programme compared with 250,000 previously.
burdens - problems
or responsibilities that causes you a lot of difficulties and hard work
parties - people or companies entering into a business arrangement or deal
related parties - involved people and organisations
loopholes - ways to get around a law
sealing the loopholes - get rid of or eliminate the loopholes in the law
signed up - joined a program
benefit - to get help or an advantage from something ผลประโยชน์
parties - people or companies entering into a business arrangement or deal
related parties - involved people and organisations
loopholes - ways to get around a law
sealing the loopholes - get rid of or eliminate the loopholes in the law
signed up - joined a program
benefit - to get help or an advantage from something ผลประโยชน์
Rice farmers engaged in the government programme trebled to about 3 million once the insurance scheme was implemented. But despite this surge, government expenditure fell to 30 billion baht from the 70-80 billion baht it paid in subsidies each year.
Under previous rice subsidies farmers pledged paddy at authorised millers at prices set by the government. But market prices rarely exceeded those set by the government, leaving the state with huge rice stockpiles.
engaged
- involved in some activity
implemented - when a plan is put into action, actually doing the things in the plan
surge - to increase very quickly เพิ่มขึ้นอย่างรวดเร็ว
expenditure - spending money
paddy - rice after it has been harvested from the field ข้าวเปลือก
pledged paddy - money that the farmers kept with the government in exchange for payments
authorised - given official permission to do something ได้สั่งการให้
rarely - not happening often นานๆ ครั้ง, ไม่บ่อย
exceeded - went beyond, went past
state - government รัฐ
stockpiles - large amounts of something stored for future use กองสินค้าในโกดัง
implemented - when a plan is put into action, actually doing the things in the plan
surge - to increase very quickly เพิ่มขึ้นอย่างรวดเร็ว
expenditure - spending money
paddy - rice after it has been harvested from the field ข้าวเปลือก
pledged paddy - money that the farmers kept with the government in exchange for payments
authorised - given official permission to do something ได้สั่งการให้
rarely - not happening often นานๆ ครั้ง, ไม่บ่อย
exceeded - went beyond, went past
state - government รัฐ
stockpiles - large amounts of something stored for future use กองสินค้าในโกดัง
The new options plan minimises state expenditure and ensures farm incomes are supported.
Farmers register with the scheme when a benchmark price for paddy and guaranteed minimum prices for farmers are set. If the benchmark price is lower than the price guarantee, farmers will be compensated for the difference.
options
- choices ทางเลือก
minimises - makes as small as possible
support farm incomes - provide money so that the incomes of farmers do not fall with low crop prices
register - make an official record of something with the government
register - have name put on an official list (and receive permission to do something like vote or marry) ลงทะเบียน ขึ้นทะเบียน (ขอใบอนุญาต)
benchmark - a standard for comparison
guarantee - a promise that something will be done or will happen คำรับรอง, การประกัน
compensated - given money for a loss or injury suffered
compensated for the difference - given money to bring the price received up to the higher price
minimises - makes as small as possible
support farm incomes - provide money so that the incomes of farmers do not fall with low crop prices
register - make an official record of something with the government
register - have name put on an official list (and receive permission to do something like vote or marry) ลงทะเบียน ขึ้นทะเบียน (ขอใบอนุญาต)
benchmark - a standard for comparison
guarantee - a promise that something will be done or will happen คำรับรอง, การประกัน
compensated - given money for a loss or injury suffered
compensated for the difference - given money to bring the price received up to the higher price
Mr Abhisit, speaking yesterday at a seminar organised by the National Anti-Corruption Commission on government intervention in farm products and anti-graft measures, pledged to invest in an IT system to gather data in order to help prevent corruption.
intervention
- becoming involved in a situation and trying to change it การแทรกแซง
government intervention - when the government gets involved in some activity it is usually not involved in (like buying and selling farmers' crops)
graft - corruption การฉ้อโกง
measures - actions that are intended to achieve or deal with something มาตราการ
pledged - promised
data - facts or information used for making calculations or decisions ข้อมูล
government intervention - when the government gets involved in some activity it is usually not involved in (like buying and selling farmers' crops)
graft - corruption การฉ้อโกง
measures - actions that are intended to achieve or deal with something มาตราการ
pledged - promised
data - facts or information used for making calculations or decisions ข้อมูล
(Source: Govt to cut sugar and cane subsidies to save public funds, 25/02/2010, Chatrudee Theparat , link)
