Thammasat University economics forum
slams government rice policy

As a fresh government price support programme for rice began this week, the Thammasat University economics department celebrated its 59th birthday with a forum critical of current economic policy.

Government rice policy was singled out for special criticism.

Ammar Siamwalla, Thailand's foremost food economist, claimed that rice policy lacked direction. M.R. Pridiyathorn Devakula, former Central Bank Governor and Finance Minister agreed wholeheartedly. This uncertainty can be expressed in several ways, all seen in today's Bangkok Post article:

* Rice policy lacks direction.
* Lack of clear rice policy.
* Rice policy seemed to get off track.
* People are confused as to whether the government wants to sell rice or not.
* Rice exporters do not know what the government plans for them.

In the past, an export tax on rice was used to prevent outflow of rice from the country and protect the domestic rice supply when there was a threat of shortages.

Recently, the price of rice dropped from 15,000 to 12 or 13,000 baht per tonne, not a low price at all.

This triggered roadblock protests by rice farmers, and the government almost immediately gave in and set up a rice-pledging scheme. Road block protesters by other groups with other demands almost immediately followed. (Read article on rash of protests).

Then there was the Blue Flag Campaign with its noble goal of providing rice to poor people at low prices. Some clever people discovered there was money to be made by hiring people to stand in line for them and then reselling the cheap rice at a price still below market price and pocketing the difference. (Read article on Blue Flag failure and coupon)

Last week a coupon programme subsidising low-priced food and necessities for poor people was launched. One million rai of unused state land was to be allocated to poor farmers. The immediate response of the military, one of the largest potential source of this land, replied that it had no land to spare. (Read article on army's rejection of request for land).

The central bank's official monetary policy is inflation targeting, but instead of the central bank using monetary policy, the responsibility has been given to the Commerce Ministry which has used various forms of market intervention and controlling prices to make different interest groups happy.

The new rice support programme appears to follow the same ill-fated pattern. Rice millers need a massive 10 million baht to join the programme. The application procedures are unclear. Rice mills in Mae Chan, Chiang Rai are still filing the necessary documents so the launch of the programme was delayed to June 19.

Only 79 of the 300 rice mills that applied for the programme initially met the stringent requirements. Many farmers already had to sell their rice several weeks ago. (See previous article)

As the Bangkok Post reported on Sunday:

Rice millers in Ayutthaya yesterday cast doubts over the new scheme, saying the requirements for joining are high and the procedures are unclear.

Prasert Bamrungpol, the president of Ayutthaya's rice millers association, said rice millers are required to pay a cash deposit of 20% of their quota of 1,000 tonnes, or about 2.7 million baht, and they must have their own stocks of paddy rice of 500 tonnes, worth about seven million baht.

He said several rice millers were strapped for cash. "Where do rice millers find 10 million baht for this?" he asked.

"Without money, they cannot join the rice-pledging scheme."

He said about 11 rice mills in the province have signed up for the programme, but only one can buy rice when the scheme gets under way today.

Although many farmers have already sold their rice stocks, some farmers are satisfied with the programme:

Malai Ruanghor, 49, a farmer from tambon Donthong in Sena district, said 20 tonnes of her newly harvested paddy were trucked to the mill.

Her paddy had a moisture content of 24%, due to heavy rains. If she sold her grain to a rice merchant, she would obtain only 10,500 baht per tonne.

Under the government scheme she was given 11,800 baht per tonne — 1,300 baht more.

She said it was well worth the three days she would have to wait to get her money.

(Source: Bangkok Post, front page, Post Reporters, 15-06-08, temp-link)

Vocabulary:

a price support programme for rice - a government programme of buying, storing, and then selling rice, to keep the rice that farmers get for that rice high (easy in theory, difficult in practice) โครงการรับประกันราคาข้าวเปลือก

rice-pledging scheme - same as "price support programme"

critical of - expressing disapproval by saying what you think is wrong with a person or thing วิพากษ์วิจารณ์

slam - criticise, be critical of วิพากษ์วิจารณ์

single out - choose one from a group for special attention ถูกดึงออกมาเป็นประเด็นหลัก

single out for criticism - choose one issue for criticism from a group of many issues ถูกดึงมาวิพากษ์วิจารณ์

foremost - most important and best ที่สำคัญที่สุด

a food economist - the study of food supply and demand using economics (See Wikipedia on food) 

agreed wholeheartedly - agree completely (with great enthusiasm) เห็นด้วยอย่างยิ่ง  

lack - does not have ขาดแคลน

lacks direction - does not have direction, does not have clear long-term goals ไร้ทิศทาง ไม่มีเป้าหมายที่ชัดเจน

policy - a set of plans and ideas used for making decisions in politics and economics and other areas นโยบาย

lack of clear policy - not easy to see what the long-term plan is, if there is any ไม่มีนโยบายที่ชัดเจน

get off track - stop working to achieve the goals set (do something unrelated) ไม่ตรงตามวัตถุประสงค์ หรือเป้าหมาย

people are confused - people do not know exactly what is happening or what they should do ทำให้ประชาชนสับสน

gave in - stop doing something (when you realise it doesn't work) ยกเลิก

inflation targeting - when the goal of monetary policy of a country's central bank is to reach a certain level of inflation, by a combination of setting interest rates, selling or buying government bonds, buying and selling foreign reserves also has an effect on inflation (See Wikipedia)

market intervention - when the government enters a market and buys and sells to influence and control the market การที่รัฐบาลเข้ามาแทรกแซงในภาคธุรกิจ

an interest group - a group of people who will all gain or lose from some decision or event if it happens กลุ่มผู้มีผลประโยชน์

ill-fated - unlucky เคราะห์ร้าย

follow the same ill-fated pattern - follow the same unlucky pattern เผชิญชะตากรรมเดียวกัน

stringent requirements - strict requirements, detailed unflexible requirements difficult to meet ข้อปฏิบัติที่เคร่งครัด กฏเกณฑ์ที่เข้มงวด

cast doubts over - people think it might fail เป็นที่กังขา เป็นที่สงสัย

a quota - the limit on the quantity officially allowed (for example, textile import quote from country) โควต้า

strapped for cash - not enough cash, do not have enough cash to operate business ขาดเงินสดในมือ ขาดเงินสดในการบริหารธุรกิจ

gets under way - starts, begins ที่เริ่มต้นขึ้น

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