Rice prices likely to jump 25% from next month

MORTGAGE SCHEME

Rice prices likely to jump 25% from next month

Published: 2/09/2011 at 08:48 AM
Newspaper section: News

Retail rice prices could jump by 25% or more from next month once the government launches the crop mortgage programme.

Somkiat: Price rises inevitable

Somkiat Makcayathorn, president of the Thai Rice Packers Association, said Hom Mali rice prices could rise by 25% or 40-50 baht per five-kilogramme bag.

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samut
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Discussion 15 : 03/09/2011 at 02:20 PM15
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Mortgages for farmers are the worst someone can do. Smart people lend money to these people so they can buy machinery, seeds what so ever to increase production and having a better life, but history tells us this is and has always been the way to get their land cheap.
Most of them they will by a mobile phone, a motorbike or pick-up truck and some alcohol to celebrate receiving the loan and at the end nothing is left to pay the loan back. But nothing to worry the banks will have the rice and the loan sharks the land as collateral and guess what will be next? Yes rice and land is gone and those people can work either for the new land owners or on construction sites. As long as the general attitude of people is: Borrow but don’t pay back anything based on lending money is just wrong. Of course this is only my opinion!
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banmebkk
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Discussion 14 : 02/09/2011 at 03:58 PM14
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I can already see Thailand's economy crashing in 10 years time due to all these unsustainable policies. Hope we don't see the "Hom Mali Crisis" or "Elephant Crisis" in the next 10 years.
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banmebkk
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Discussion 13 : 02/09/2011 at 03:44 PM13
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Morgages morgages and even more morgages for people with already shaky financial background will collapse the entire Thai economy in the next 10-20 years. This is how the US's economy collapse, too much lending on shaky grounds, approving paper thin loans to people with questionable financial backgrounds. Eg. Clinton wants as many citizens to own a home, therefore gave out loans to people with the most questionable background, and now all these people are in a hole with no home. PTP wants as many people to have enough money to buy goods, approving mortages and credit cards to high risk people so they can start a spending spree. The government will take on more and more debt until it busts.
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dao
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Discussion 12 : 02/09/2011 at 03:23 PM12
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Dutchie
Probably not as much as you .This price rise hasnt actually been implemented because the government knows it was just a flakey campaign promise to woo the masses .Hey wait werent all their campaign promises .Whoops
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luca2715
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Discussion 11 : 02/09/2011 at 03:01 PM11
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Dis # 8 : Sure!!! now that Vietnam will have an opportunity to be more competitive they will increase their prices as a favor to Thailand .. In what sort of dream-world do you live?
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meme
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Discussion 10 : 02/09/2011 at 02:06 PM10
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Who will pay for the 300 baht wage increase? Inflation of course ...

But no problem at the next election, Puea Thaksin Party just promises 400 baht and all brain-washed will vote for them again.
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dutchboy
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Discussion 9 : 02/09/2011 at 09:56 AM9
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D1, Dao,

300 Baht per day an artificially high minimum wage?

I hope you're kidding.

What do you make in a day?
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Eric
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Discussion 8 : 02/09/2011 at 09:53 AM8
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Dis # 2 & 3. Do you seriously think that the government has no plan regarding the number 2 world largest rice exporter and key competitor? You really underestimated this government. There is already meetings with Vietnam to cooperate on price and Vietnam is now hoarding rice in anticipation of the new rice policy. Thailand & Vietnam is the world largest rice exporter and don't be suprised that a rice cartel will be formed Opec style.

The benefit of the higher price will allow more farmers to cultivate rice and feed the world. More money can be invested with the higher price to mechanise as productivity in Thailand is very low.

The government will find a way to control domestic price as this will affect their grassroot support. This may be in 'blue flag' or subsidized price.
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geoffo
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Discussion 7 : 02/09/2011 at 09:52 AM7
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Good work Government , Add to the mix the revised ( old Thaksin ) plan for politicians to use some of Thailand's reserves for the purpose of speculative investment in order to "offset the dollar deprecation" and the situation within one year could be a real disaster.

This is ideology meeting reality
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englishbob
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Discussion 6 : 02/09/2011 at 09:42 AM6
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Great news... The sooner Thailand moves away from labour intensive, low-return agriculture and towards industry the better.

Fortunately this amateur government has pulled off a master stroke by suddenly making the country's main industry impossible to sell.
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