Tuesday, November 27, 2012

Thai Rice Lesson

THAILAND has a stock pile of milled rice for 19 million tonnage in state warehouse, one media reported. I'm amazed and impressed by the reason the media has uncovered with the extra-ordinary stock. As a part of fulfilling their campaign pledges, ruling party keep buying farmer's paddies with over-market prices. The source said, the government gave Bt 9,000 per ton of paddies, well above market price of Bt 5,000. Despite critic by opposition party MPs, the ruling party keep buying them to show their gratitude for rural farmer's votes. As a result, Thailand has no choice to raise the selling price which threaten Thailand's world's no.1 rice exporter ranking. As order declining, the stock pile up by the time that struggle Thai authority with storage place. Let it be.

How does it concern to me? Our civilian government tried to ease our farmer's plight facing lower price when the crop come to collect by local traders. Last year, the government judged the fixed rate and bought all paddies from farmers in attempt of regularize paddy price and to kill manipulation of traders. However our government cannot able to pay beyond market price which is unlike with Thailand's government. We have 70% of population working in agriculture related sectors through either family or small trade. If our government's target is to reduce our people's poverty, our leaders have to provide possible subsidies to ease our farmer's plight, just like Thailand does. Our government should absorb some lose when they are making business with poor because their money is indirectly owned by people as well. Without a success making our rural people's life better, it would be very difficult to say they are successful in democratizing. Recent news suggest that the government will not go down to the fields to buy paddies this year. They will wait and purchase paddies from the designated places of township in order to avoid last year difficulties in collection. Sound lack of kindness. I cannot deny that government effort in buying farmer's paddies is good. However it would be better if the authority make their collection points easier assess to farmers as well as ensure price is not under-market at least.

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