THE MAJOR CHALLENGE FOR THAILAND IN 2009/2010

[bfrm]

LIKE TO BE JUST AS [POSITIVE LIKE SOME PEOPLE HERE OR EVEN THE DOCTOR FROM CHIANMAI UNIVERSITY. ONCE EXPOSED TO WORLD SYSTEMS IN TERMS OF WORLD TRADE OF ALL SHADES, STOCK EXCHANGES, BLAH, BLAH, BLAH, THE REAL CHALLENGE TO THAILAND IS NOT MERELY OF POLITCAL STABILISATION, BUT MORE SO ONE INCOME DISTRIBUTION AND PIE-SHARING. ONCE THE PIE IS HOGGED BY SOME FEW PEOPLE LEAVING ONLY CRUMBS FOR THE MAJORITY, CHALLENGES FOR THAIS WILL REMAIN THE TASK ETERNAL FOR THE THAIS.

[stilljustbrowsing]

I have a little example here of only one of the current problems faceing Thailand.

The first rains of the year have been falling for a couple of months now in Thailand’s often dry north-east, and farmers are out most days in the freshly-flooded fields, transplanting young jasmine rice seedlings.

They work quickly, bent over double, expertly spacing the seedlings in the silt.

But it is back-breaking work. And although jasmine is one of the most highly-prized rice varieties – it is grown almost exclusively in north-eastern Thailand – the farmers in this region are some of the poorest people in the country, most of them mired in debt.
Their problem, says veteran rice researcher Kwanchai Gomez from Bangkok’s Kasaertsart University, is a chronic lack of investment in rice farming.
Very little of the north-east – one of Thailand’s most populous regions – is irrigated.
“Water is the most important thing that guarantees low risk," she says.
“And risk is the main problem for farmers. One year no rain, the next year floods. So you have to get a loan. Then your crop fails, and you get into debt.”
Other nations are threatening Thailand's place as the top rice exporter
When world rice prices soared last year, everyone assumed that farmers in Thailand – for many years the world’s top rice exporter – must have done well.
Some did. But only those in the central plains region, which get irrigation from the Chaophraya River.
They grow up to three crops a year, mostly higher yield varieties than jasmine.
That is where most of Thailand’s exports come from.
The indebtedness and poverty of farmers was ignored for decades by governments in Bangkok.
Then in the 2001 election, a wealthy telecoms tycoon, Thaksin Shinawatra, drew up a platform of policies aimed directly at farmers, like debt forgiveness and a village loan fund.
It proved a stunningly successful vote-winning strategy, delivering Mr Thaksin successive election victories, before he was ousted by a coup in September 2006.
But many of those policies have done less for farmers than Mr Thaksin claimed.

Rice mortgage
One, in particular, is proving a huge headache for the current government, led by his main rival, the Democrat Party.
"I realized that our problems with debt and crop prices would never be cured just by waiting for the government to help "
Tongsuan Sodapak
It is called the rice mortgage scheme. The idea is to help farmers ride out price volatility by allowing them to sell their rice to the government at a guaranteed price.
Farmers usually have no way to store or process their rice, so they are all forced to sell at once at harvest time, allowing the millers – who do have these facilities – to bargain down the price and take most of the profit.
But the scheme has become riddled with corruption, and benefits only a minority of farmers.
“Most of them, unfortunately, are rich farmers with irrigation,” says economist Nipon Poapongsakorn from the Thailand Development Research Institute.

“Poor farmers in the north-east don’t have a surplus of rice to sell, so they don’t benefit from this policy at all. It is a pro-rich, pro-business policy”.

The scheme is also very expensive for the government, especially now, because last year – when rice prices were unusually volatile – a weak government, led by Mr Thaksin’s allies, set the guaranteed price too high.

Those with rice to sell would only sell to the government. Rice traders, like Asia Golden Rice - one of Thailand’s most successful - found it difficult to procure supplies at competitive prices for their overseas customers.

“We might even lose our number one ranking as a rice exporter to our competitors,” says Saranyu Jeamsinkul, deputy managing director for Asia Golden Rice.

“We are at least $100 a tonne higher than Vietnam - so it is rather difficult to export at the moment”.

Sorting the mess

The government has ordered Deputy Prime Minister Kobsak Sapavasu to sort out the mess.



The escalating price of rice has not made many Thai farmers any richer
He estimates it has already cost 11 billion baht ($325m) just to process and store crops bought under the mortgage scheme.

And because rice prices have fallen this year, when the government sells the stocks he estimates it will lose another 20 billion baht ($590m).

“The numbers are just unbelievable," says Mr Kobsak.

But his attempts to close down the mortgage scheme, and replace it with a simpler subsidy, have been blocked by his own coalition partners.

There is a strong suspicion, shared by Mr Kobsak, that a lot of politicians are making money out of the scheme – perhaps from bribes from warehouse-keepers storing it, or traders trying to buy at bargain prices.

With any hope of a new agricultural policy stalled over political bickering, one group of farmers near the north-eastern town of Ubon Ratchathani have decided to try to lift their living standards by themselves.

They have joined forces to run their own rice mill, and they are saving on escalating fertiliser costs by recycling cow dung and growing organic jasmine rice.

"I wondered why so many farmers were abandoning their farms," said Tongsuan Sodapak, the local teacher whose idea it is. "Then I realised that our problems with debt and crop prices would never be cured just by waiting for the government to help."

This group of farmers has been fortunate, because they have been able to make contact with a buyer for their organic rice in Italy. Most other farmers in the north-east have no way of marketing their jasmine rice, despite its famed fragrance and flavour.

Thailand's long preoccupation with being the number one exporter should now shift, says Nipon Poapongsakorn - to a strategy of marketing Thai rice for its quality and variety.

One retailer in Bangkok has made a start in promoting Thailand's 81 rice varieties. Gourmet Market, a luxury supermarket chain, has bins of different kinds of rice, explaining exactly which region they come from, and their characteristic. It is a bit like the terroir of wine.

"We have people coming here from places like Hong Kong," says company vice president Lakana Naviroj. "They take rice home, because they don't have the variety and quality we have here."

One supermarket alone, though, will not give Thailand's rice the impact it could have on global markets. That requires a concerted drive coordinated by different government agencies, something that seems unlikely in today's volatile political climate.

At the school where Tongsun Sodapak teaches, when he's not helping grow to rice, I asked a group of teenage girls - nearly all of them the children of farmers - how many of them would be happy to stay on the farm when they left school.

Only four, out of 34, raised their hands.
So there you have but one problem, already internationally known!

[ihatethailand]

Another (maybe minor) challenge is to fight with Cambodia

[ihatethailand]

I guess you forget about the hidden agenda to fight with Cambodia to take back Preah Vihear from Cambodia.

[Just-1-Voice2]

I guess you forget about the hidden agenda to fight with Cambodia to take back Preah Vihear from Cambodia.

How can you "take back" something that was never yours to begin with?

[Isaannative]

I guess you forget about the hidden agenda to fight with Cambodia to take back Preah Vihear from Cambodia.

How can you "take back" something that was never yours to begin with?

You are absolutely right to say “how can you take back something that was never yours to begin with?” So the only way to have it is to rob or steal.

That is exactly what happened to New Zealand, Australia, America, South Africa, etc.. This is how all these countries and lands end up belonging to Farangs today. Rob & steal.

[villager]

I have a little example here of only one of the current problems facing Thailand.....

A great post SJB, and a unique insight into the myriad problems facing the farmers in the North east of Thailand , not sure if you read one of my posts last week , but in my village the young people between the ages of 18 and 25 or so have all left, maybe forever for Jobs in Bangkok and in the tourist resorts , This as no doubt you are aware is an acute problem , that combined with the uncertain weather patterns, bode,s ill for the future of rice farmer,s in the not too distant future.

[stilljustbrowsing]

I guess you forget about the hidden agenda to fight with Cambodia to take back Preah Vihear from Cambodia.

How can you "take back" something that was never yours to begin with?

You are absolutely right to say “how can you take back something that was never yours to begin with?” So the only way to have it is to rob or steal.

That is exactly what happened to New Zealand, Australia, America, South Africa, etc.. This is how all these countries and lands end up belonging to Farangs today. Rob & steal.

First, thanks villager for your agreement.
Now, let me look at anothers post............
throughout history, the strong have dominated the weak, those left have been allowed to live because they have something to offer to the victors.
The weak now hide behind HR and various other 'shields' to try to enforce their beliefs and thoughts on others.
Rob (ert) is my middle name and steel may be my resolve.
The temple in question has one access point, from which direction is that?

[villager]

Yeah I agree SJB, but in many cases the strong have improved the lives of the weak too although they may not actually know it at the time , I write of course on Africa , just look at it now under self rule, a complete shambles , Aids out of control , tribal conflict , civil wars, Corruption a go go , mass starvation solely dependent on food from the west, as far as the temple go,s it,s always puzzled me as to just why the Thai,s should actually conceive it is theirs (ego trip perhaps?) in closing I have just read your post again on Farming and rice growing here in the North East and it made even more sense than it did the first time , well its 5 am now and I,m just going to mix some ground bait, I,ll be off first light to start maggot drowning,I tell you ain,t life tough in the tropics,LOL.

[brandon]

A wonderful greeting to you all Thai people!!Sawadee kap!!
Its a Land of Smile and has not change BUT whats has change is the political climax which has gone from bad to worst and will jeopardise not only the local economy BUT Asia on a whole.

Somehow or rather peaceful demostration don't seems to stir an eyelid!More death on the streets and more violence seems to prevail.Reluctance for the current PM to give up his power and call for election is not on the card, hence what is the next step?

I belive the Thai people wouldn't want to see democracy thrown to the wind.All of us know democracy and free election is the way to go.Whether you are RED,YELLOW you are Thai and should stay united for your cause.Let not any individual with a selfish aim or group of people manipulate your goals in life!Politics is about WAY OF LIFE,IMPROVING LIVELIHOOD,SHARING,LOVING AND MOVING FORWARD.

I know you Thai people will always be peaceful,loving people!Let not this political turmoil change the course of the people.Remember the Chao Phraya river has always been there and why should it change??

Hope peace prevail, those who wants power and not be resposible for it will pay a very dear price.Citizen choose the government democratically and place them in power not the reverse.

God Bless

Sawadee Kap