Yingluck: Mortgage system good for farmers and economy
Former Prime Minister Yingluck (Thaksin Shinawatra's sister) defended the mortgage system for rice, devised by her government at the time, in court on Friday. She is convinced that this plan benefited the farmers, who were burdened by debt. The national economy would also benefit from the system.
Yesterday, she was tried in Thailand's Supreme Court for dereliction of duty for allegedly ignoring warnings about corruption as chair of the National Rice Policy Committee and failing to act on rising costs.
During the first day of the trial, the witnesses for the defence. The hearing is expected to last until February next year. Through the rice mortgage system, which was in effect from 2012 to 2014, the government bought up all paddy (brown rice) at a price 40 percent above the market price. As a result, Thai rice became too expensive on the world market and Thailand lost its position as the world's largest rice exporter to Vietnam and India.
Yingluck argued that the mortgage system was a non-profit program to support the economy. The farmers who benefited saw their debts reduced and the banks had to lend less money. Yingluck denied that the system had disrupted the market mechanism. Traders could continue to buy rice from other farmers as usual.
Less than 13,3 million tons of the rice bought by the government for 1 million was exported. A lot of rice was rotting in the storage silos and therefore became unsaleable. According to calculations, Thailand has suffered a loss of 287 billion baht as a result.
Source: Bangkok Post
I think the farmers should form a cooperative to form a block against the buyers of the rice.
Furthermore, as a cooperative, you can buy a Ricemill yourself and process the rice yourself.
Furthermore, selling the rice under the clock, setting a minimum price.
So something like what we do in the Netherlands.
Ben