Sign up | Log in



Home  >>  Daily News  >>  ASEAN ANALYSIS


Asean Affairs    22  September  2011

Rice subsidy plan may cause havoc

By  David Swartzemtruber

AseanAffairs     22  September 2011

Related Stories

September 21,2011
Is your city on the earthquake list?

September 20,2011
Piracy in Asean waters

September 19,2011
Japan’s woes spark Asean move

 September 18,2011

 September 16,2011
Child mortality drops in East Asia-Pacific

 September 15,2011
Xayaburi dam could increase earthquakes

September 14,2011
Myanmar’s Myitsone Dam Project to continue

September 13,2011
Enter the Cambodians


One of the crowd-pleasing programs that carried the Pheu Thai party into power on July 3 was a rice mortgage program that will buy rice from farmers at the high prices of 15,000 baht (US$500) per ton for white rice and 25,000 baht ($833) per ton for fragrant rice.

Unfortunately, programs that attract votes often do not make economic sense.

Thailand is the world’s largest rice exporter and its policies affect other countries, notably Vietnam, which is the second largest rice exporter.

The Thai rice-mortgage plan to be implemented in October will put the price of Thai rice above what the market is willing to pay as rice production has improved over the last year in many countries, with India emerging as a leading rice exporter, among others.

Thailand will be stuck with warehouses full of rice that can’t be sold. At some point in time, the rice will have to be dumped below it’s subsidy level and this could cause considerable financial strain to the Thai economy.

Olarn Chaipravat, adviser to Prime Minister Yingluk Shinawatra, earlier said the government would buy up to 25 million tonnes of rice from farmers at a cost of about 400 billion baht ($13 billion) in the first year.

The problem is that the cost of the program could hurt the Thai economy wiping out funds needed for infrastructure improvement such as sorely needed water management projects.

Experts have weighed win, saying the country over the next five years needed to invest about 4.4 trillion baht in water management, railroads, port facilities, energy and healthcare in order to improve its competitiveness. Water management alone, including measures to prevent flooding, require an investment of about 300 billion baht over the period.

The only people smiling about the situation are the Vietnamese, who may enjoy record-breaking export sales starting in October.

The same rice mortgage scheme was implemented by the brother of Prime Minister Yingluck, deposed former prime minister Thaksin Shinawatra, during his term that ended in 2006.

Economists judged the program to be unsuccessful at that time, yet it is being rerun another time.

In experiments, white mice can be taught to learn from their mistakes but in human politics apparently that is not the case.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    22  September  2011 Subsribe Now !
• Unilever May Resume Buying Sinar Mas Palm Oil
Subcribe: Asean Affairs Global Magazine
• Indonesia to be connected Asean Affairs Premium
• Many Malaysian consumers manage money poorly
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• S&P delays credit upgrades
• New cyber security centre for Singapore
• Tesco Lotus announces property IPO
• Solar energy gets hot in Thailand 
• SET to be upgraded pp

Asean Analysis              22  September  2011

Advertise Your Brand
• Rice subsidy plan may cause havoc Sponsor Our Events

Asean Stock Watch   22  September  2011

• Asean Stock Watch-September 22 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand