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Thailand's Rice Mortgage Scheme Essay

892 words - 4 pages

The Rice Mortgage Scheme is in the eye of the Thai people that agree and disagreed with many academicians say the project reached an impasse because the Ministry of Commerce cannot sell rice. If sold, it must be sold at a low price. The government is not doing for the farmers but doing for themselves. The government still insists that the Rice Mortgage Scheme benefits the farmers directly. Farmers gain more revenue and more importantly, makes the economy more turnover and more prosperous.

The Rice Mortgage Scheme began after Yingluck Shinwatra took position of the Prime Minister. As it was first stated as the policy of the Parliament at 23 August 2011. The main subject of the Scheme is to raise agricultural products in a stable manner and to build more marketing channels and gain authority to negotiate the rice price. The mortgage price depends on the type of rice. White rice with 25% moisture priced at 15,000 Baht per ton, Jasmine Rice at 20,000 Baht per ton and Glutinous Rice or Sticky Rice is worth 18,000 Baht per ton. Yingluck’s parliament appointed to The National Rice Policy Committee is responsible for determining the type, quality, quantity and duration. The pledging only offers for 5 types of paddy, In-season rice, Jasmine Rice Paddy, PathumThani Paddy, Sticky Rice Paddy. The scheme increases the income of farmers in two ways. Firstly, the farmers who participated in the scheme .Secondly, the farmers that are not in the scheme but have a surplus of rice production will be able to sell price at a higher price.

Disadvantage of the rice mortgage
The Bank for Agriculture and Agricultural Cooperatives (BAAC) has stated the disadvantages of the Rice Mortgage Scheme. The deficit of the government’s finance pressures the mortgage price higher than the market price. It motivates farmers to produce more rice and causes more early-rice. When the government is the major rice seller, Thai’s rice price becomes higher than the competitors. Furthermore, in every process it causes a significant chance that there will be corruption.

Currently, the problem of the Rice Mortgage scheme is not the problem of the government will suffer loss or not, but it is how that most people or mass media cannot understand the importance of securing the living of the farmers. Also there are issues of the merchants, exporters and rice mill owners or even commercial banks, familiarize with the pursuits wealth exploited from farmers , tax evasion and even refused to sacrifice the loss of profit.

บทสัมภาษณ์ (Interview)

1. What is the cause of the Rice Mortgage scheme problem?
Answer: Firstly, the government cannot pay the pledge to the...

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