http://www.agprofess...-190659231.html
One way a developing country can head toward bankruptcy is the way
the Thailand government’s ruling party won election—promising farmers
more than the government can afford in crop subsidies.
The rice producer subsidy has become known as the “Thai rice scheme”
and has the government owning about 17 million tonnes of milled rice, or
nearly twice what it exports normally in a year.
The government is committed to paying farmers 15,000 baht (1$=29.82
baht) per tonne for rice. The Thai government is involved in marketing
its farmers’ rice; therefore, the asking price for Thai rice is at $570 a
tonne, about $170 higher than rice from its main rivals in the
market—India and Vietnam, explained a Reuters News Agency report.
Prime Minister Yingluck Shinawatra came into power in 2011 on a
promise to pay farmers way above what was then the market rate for their
rice. Now, the government owns all this overpriced rice that has gone
into storage—and continues to go into storage. Dumping the rice on the
market could plunge the price of rice worldwide.
The government is paying for warehouse storage, and also running out
of storage warehouses for the milled rice. And although the government
has threatened arrest of anyone entering the warehouses without
permission, there are reports that the rice is going out of condition
and spoiling, which is logical considering the country’s hot and humid
climate.
Officials who know the particulars report the government spent a
minimum of $11.3 billion on the first year of the program through last
September, and the current year’s program is underway with the financial
mess compounding itself.
Having been to Thailand twice as a guest of the previous ruling
political party, I was in Thailand when the last election campaign was
underway, and it was obvious that promising the large rural population a
higher income than the ruling party was willing to promise was swaying
the vote of rural rice growers. Those rural low-income voters are still
loyal to the new ruling party because they appreciate the higher income
and aren’t concerned about the total economic situation of the country.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
