Past governments either bought up paddy or offered farmers a guaranteed price for their crop, but neither of these remedies for low rice prices is acceptable to the current junta-led administration.
The price pledge is ruled out by the fact that the government is now suing former premier Yingluck Shinawatra over alleged negligence of duty towards just such a scheme run by her government. She is now facing a bill of Bt36 billion in civil liabilities.
But Prayut and his administration are under pressure to act after the price of Hom Mali (jasmine) rice plunged from Bt9,700 to Bt12,000 per tonne down as low as Bt5,000 per tonne.
The plunge triggered suspicion in some quarters of deliberate price-fixing plots aimed at pressuring the government into employing another rice-pledging scheme.
Other observers see nothing suspicious in the price drop itself, but detect that certain groups are exploiting it for their own political benefit.
But some insist that the fall is caused by rice exporters locking in the milled-rice price at a mere US$530 (Bt18,550) per tonne in the futures market, when rice for immediate delivery costs $720 per tonne in the spot market.
The rice millers also claim they need to lower the price of paddy, since the humidity of the stored crop is at more than 30 per cent, against the standard 15 per cent.
The final scenario is that no one is acting illicitly: the real culprit for the plummeting price is oversupply in the world market.
Prayut’s government has vowed not to burden state coffers by financing populist projects. But the current crisis has forced it to compromise by adopting a subsidy package (though for barns of paddy rather than a guaranteed price for every grain) in the form of a “loan scheme for putting off the sale of rice”.
The loan scheme will last until the end of February.
Farmers under the scheme will be given Bt13,000 per tonne of Hom Mali paddy, comprising Bt9,500 in “soft” loan (five-month grace period), and financial aid of Bt2,000 for harvesting and Bt1,500 for storage.
Farmers who don’t own barns will be offered between Bt9,700 and Bt12,000 per tonne (according to market prices) for their Hom Mali paddy plus another Bt2,000 by the end of February.
The government expects to spend about Bt56 billion on the scheme. Critics, however, have slammed the measure as insufficient.
A large group of farmers have taken matters in to their own hands by cutting out the middlemen and milling, packing and selling their rice directly to consumers for a better price. Many organisations, including the military, have lent a hand in helping farmers selling their crop at an acceptable price. If he’s lucky, Prayut might yet pass the test of falling rice prices that every government has had to deal with.
In the long run, however, the government must take action to oversee all players in the supply chain so that rice farmers, millers and exporters are treated on an equal basis and guaranteed fair and mutual benefits.

The order was signed by Minister of Justice deputy permanent secretary Tawatchai Thaikaew, as Justice Minister Paiboon Khumchaya and his permanent secretary Chanchow Chaiyanukij were in Germany to attend a conference on drugs.
The three transferred officers are deputy director Pol Lt-Colonel Pong-in Intarakhao, deputy director Pol Lt-Colonel Somboon Sarasit and director of the DSI’s Bureau of Development and Logistics Pol Lt-Colonel Chinnachot Putthiwattada.
They were requested specifically by the OPS.
“I understand that the Office wanted the three because they are very competent. They will hold a special position in the office following the National Council for Peace and Order’s order,” Tawatchai said.
He added that the Justice Ministry did not oppose the transfer and the vacancies would be filled as soon as possible.
DSI director Pol-Colonel Paisit Wongmuang said the transfers would not affect the agency’s |work.
Important cases under the DSI’s responsibility are usually investigated by committees so if members are missing, the rest of the committee carries on work while waiting for a replacement, Paisit said.
Pong-in used to be director of the Security Crime Bureau, which dealt with high-profile cases such as the purchase of the fake bomb-detector GT 200.
Somboon had been responsible for the investigation into embezzlement scandals involving the Klongchan Credit Union and the case involving Somdej Chuang’s allegedly illegally obtained car.
It is anticipated that Pol Lt-Colonel Kornrawtch Panprapra-korn and Pol Lt-Colonel Prawut Wogsrinil will fill the vacant deputy director positions at the DSI.

Calls are growing for the government to step in and alleviate the suffering of rice growers.
On Monday, the government responded by launching a programme of low-interest loans designed to encourage farmers to store their crop rather than sell it quickly at lower prices. Farmers will get a “soft” loan of Bt13,000 for every tonne of paddy they store.
Successive governments have used different measures to subsidise rice farmers, often hailed as “the backbone of the country”. The Democrat administration of Abhisit Vejajjiva offered a price-guarantee programme while the last Pheu Thai Party-led government opted for a price-pledging scheme.
In launching its own subsidy programme, the military-led government has acknowledged the necessity of intervening in farm-produce markets to help prop up prices.
Although Thailand’s economy has diversified with growth in trading and service industries, millions still work in the agricultural sector. Many remain devoted to their rural livelihood, but others have no other choice when it comes to earning money.
In order to avert crisis and rising anger among this huge sector of the population, the junta-led government has been forced to adopt a measure – subsidy – that it despises as populist politicking.
The government is currently seeking civil liabilities of more than Bt30 billion from former prime minister Yingluck Shinawatra over her administration’s corruption-plagued rice price-pledging scheme.
But the junta is also facing pressure for once more failing to keep the rice price at a satisfactory level.
There is talk among some government figures that the current administration may have to suffer a loss from its own subsidy scheme.
But whatever the motivation for the scheme, it will be a boon to farmers. Those in power must now make sure that it is rice growers who benefit from the state funds being spent.
Government figures have accused unnamed politicians and rice millers of collaborating in fixing the paddy prices. They claim the collaborators are trying to incite public hatred and opposition against the junta.
Rather than blaming others, the government should focus on tackling the problem at hand and determining its real cause – which is reported to be oversupply.
If that is indeed the case, authorities must adopt a long-term policy of encouraging rice farmers to grow other crops in order to cut the paddy supply.
If, instead, they are confident that the problem is price fixing by rice millers and politicians, the government should design measures that prevent such illicit market intervention.
One thing that isn’t helpful is the kind of off-the-cuff advice that one senior government official gave last week: “If fertiliser is more expensive than rice, then you should switch to selling fertiliser instead.” Although it was later explained that he had not been referring to farmers, such flippant remarks have no place in debate about such a serious national issue.
The government must also guard against the kind of corruption that has blighted previous rice subsidies. This latest programme must not be allowed to become the bonanza for unscrupulous millers, officials and politicians that seems to have cost the country billions in recent years.

Constitution Drafting Commission (CDC) chairman Meechai Ruchupan said two changes have been made to reflect the current situation following the passing of His Majesty King Bhumibol Adulyadej.
The revisions, suggested by the Constitutional Court, involve the royal signature and the Royal Family lineage, according to the CDC chief.
However, he refused to elaborate, saying it was up to the government to decide whether the information should be made public.
As per the schedule set in the 2014 interim charter, he said the government has up to November 9 to seek royal endorsement for the promulgation of the new charter.
There have been concerns that the King’s passing may affect the promulgation of the new constitution. The road map by the post-coup government promised a general election and a return to civilian rule by the end of next year or no later than early 2018.
Meechai, meanwhile, said yesterday that any political party found to have received donations in exchange for political posts would risk being dissolved once the new Political Party Act goes into effect.
He said the new legislation would give the Election Commission (EC) power to investigate allegations of donations made to political parties for government posts. Once it has sufficient evidence, the EC is empowered to take the case directly to the Constitutional Court for an order to disband the parties involved, Meechai explained.

Executions proposal
“The case does not need to be filed through public prosecutors,” he said, adding this system was aimed at expediting the process.
The CDC is writing four new laws, including the Political Party Act, to be promulgated with the new constitution. The new laws must be passed before the next election takes place.
As for the suggestion to the CDC that the leader of a political party found to have accepted donations in exchange for ministerial seats should be executed, Meechai said this was “feasible” though it would be difficult to prove such a wrongdoing.
He said this matter would be addressed in a new organic law on the National Anti-Corruption Commission, which will be written later.
“You need clear evidence to prove such wrongdoing,” he said.
Under the new Political Party Act, offences that could lead to the dissolution of a political party are: moves against the country’ system of constitutional monarchy; move to overthrow the monarchy; accepting donations from non-Thais; accepting donations from an individual who encourages the ousting of the monarchy; and accepting donations in exchange for government posts.
Meechai said the ban on accepting donations from non-Thai nationals aimed to prevent |influence of foreigners over Thai politics.
“But we do not prohibit Thai expatriates living overseas from donating money to political parties,” he said, adding however that the CDC has yet to set the maximum limit for donations to political parties.

Facebook executive Alvin Sheng Hui Tan wrote to Deputy Prime Minister Prajin Juntong last Sunday saying that Facebook would take “appropriate” action concerning content identified by the government as illegal.
“Government entities can submit reports to Facebook about content that is believed to violate local law. If, after careful legal review, we find that the content is illegal under local law, we will restrict such content as appropriate,” Tan said in the letter.
Tan is head of public policy in Southeast Asia for Facebook.
After the passing of His Majesty King Bhumibol Adulyadej, the Prayut government asked online and social media platforms, including Google, LINE and Facebook, to monitor and remove content that allegedly violated the lese majeste law.
In the letter seen by The Nation, Facebook said the yearly Global Government Requests Report detailed content restrictions related to violations of local laws. The report can be found at https://govtrequests.facebook.com.
The letter said Facebook had clear and consistent policies regarding governments’ content-removal requests, which were reviewed in accordance with the company’s terms and applicable law.
“We understand the current sensitivities of the situation in Thailand, and are treating all content-related requests and reports with utmost importance and urgency, including those with alleged lese majeste content,” the letter said.
Tan wrote that the company was reviewing requests as quickly as possible through Facebook Community Operations teams, which included staff that are fluent in Thai, which were working 24 hours a day.
Prajin had already said that Google and LINE Thailand had agreed to the government’s request to monitor and remove content deemed insulting to the monarchy, but both companies have denied the claim.
A LINE statement sent to Deutsche Presse-Agentur said: “We do not monitor or block user content. User content is also encrypted, and cannot be viewed by LINE.”
In a statement sent to The Nation recently, Google said it would consider the Thai requests to remove certain sensitive information on a case-by-case basis.
Meanwhile, Army chief General Chalermchai Sitthisart yesterday opened the Army Cyber Centre, which he said was tasked to train Army personnel to deal with hackers and cyber-security.
“At present, cyber-threats particularly regarding security, have been a prime concern of the country. Those who oppose the government share inaccurate and distorted information by using sophisticated cyberspace technology,” he said.
The general said people should filter what they post on social networks,
particularly content that related to lese majeste. He also alleged that some academics had already posted lese majeste material on social media.