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TDRI says Yingluck's rice pledging scheme causes almost a trillion baht loss Thailand Development Research Institute (TDRI) says the rice-pledging scheme implemented by the Yingluck government during 2011-2014 has so far caused 660 billion baht loss to the state. But it says the loss could reach a trillion baht on assumption that the remaining 17 million tons of rice in the stocks are sold out in the next 10 years. TDRI researcher Dr Nipon Poapongsakorn said in his research on corruption involving the implementation of the rice pledging scheme from 2011 to 2014 that the scheme was considered the highest market intervention scheme in history in which the government had spent up to 980 billion baht to buy up to 54.4 million tons of rice or 53% of total rice output from farmers. The research revealed that 1.77-1.78 million farmers from total 3.5-3.6 million farmers joining the scheme for the 2012-2013 harvest season. A total of 826 rice mills and 1,685 warehouses also joined the scheme. The scheme had 20 rice inspectors. By end of October 31 this year, it was found that 85% of rice in the stocks have lower quality than normal standard. This low quality rice resulted in the loss of 660 billion baht to the state from the pledging scheme. He said that if taking into account of the assessment of the remaining 17 million tons of rice in the stocks that could be released in the market within the 10-year period, the loss could jumped 300 billion baht more to 960 billion baht. He said in the research that the rice-pledging scheme had brought about damages to the societies rather than advantages to farmers and consumers of an estimated 123 billion baht. Meanwhile farmers joining the scheme obtained additional 296 billion baht in direct revenues. But after the combination of both direct and indirect revenues from the scheme, farmers obtained 561 billion baht in revenues. But farmers who were benefitted from the scheme were mostly rich and medium earning farmers, rather than poor and low income farmers. Dr Nipon said the rice-pledging scheme also had 585 billion baht of economic rents or 41% of GDP that resulted in relevant people to seek this special profits from investment in the scheme and was tantamount to extravagantly spend national resources that would obstruct economic growth. He identified higher cost of rice planting, higher use of irrigation water than the water management plan of the Royal Irrigation Department that will become a water shortage problem for this year. Source: http://englishnews.thaipbs.or.th/td...ging-scheme-causes-almost-trillion-baht-loss/
