Rice Scheme: Govt leak puts loss at 200 billion baht

Govt to lose 200 billion on rice scheme not 70-100 billion. Asean neighbors importing less rice, global supply rising.

Supa Piyajitti has been relieved of her duties as deputy permanent secretary at the finance ministry over embarrassing leaks about the huge cost of the state's rice pledging scheme. 

Click button to listen to Rice Data Leak download 

AGRICULTURE

Ministry reshuffle follows data leak

As scheme bleeds cash, regional rivals pounce
28 May 2013
Phusadee Arunmas & Wichit Chantanusornsiri

Supa Piyajitti, deputy permanent secretary at the finance ministry (Photo below from Finance Ministry website)

The Finance Ministry has reassigned Supa Piyajitti, a deputy finance permanent secretary, from her role overseeing the debts and expenses group after last week's leaked report predicting big losses for the state's rice pledging scheme.

Ms Supa will now be in charge of the Office of the Permanent Secretary and the Fiscal Policy Office. Pongpanu Svetarundra, another deputy permanent secretary, will move from the Fiscal Policy Office to take her place, according to a letter signed by the finance permanent secretary and made public Monday.

Local media widely reported that losses from the government's most contentious populist campaign - the rice subsidy scheme - are estimated to reach 200 billion baht, up sharply from the Finance Ministry's previous projection of 70-100 billion baht.

The second-half outlook for Thai rice exports remains gloomy, with big importers hesitant to buy more grains for reasons of self-reliance.

Indonesia and the Philippines have opted for reduced dependence on food imports, aiming to raise productivity and cut exports.

Sutarto Almoeso, president of Bulog, the Indonesian state-owned company in charge of rice distribution, said local production is healthy this year and the country is awaiting the outcome of the second-crop harvest during the coming wet season.

"If production is still good, Indonesia will not need to import rice from either Thailand or Vietnam," he said, speaking at the 2013 Thailand Rice Convention in Chiang Mai Monday.

He said current rice stocks in Indonesia are at a level sufficient for 6-8 months of consumption. 

Last year the country bought more than a million tonnes of rice, of which 340,000 tonnes came from Thailand.

Mr Almoeso said Indonesia has improved its irrigation systems to support rice farming and aims to generate more than 14 million tonnes of paddy next year, up from its usual 10 million.

The Philippines is making similar moves with a self-sufficiency scheme aimed at increasing rice production from the current 15 million tonnes of paddy a year, according to Orlan Calayag, an executive of the country's National Food Authority.

The Philippines imported nearly 200,000 tonnes rice from Thailand in 2011, but the amount plunged to just 3,377 tonnes last year.

A report of the UN Food and Agriculture Organization estimated global rice output this year at 746.7 million tonnes of paddy, a 2.1% rise from 2012.

While demand from traditional importers slows, Thailand will soon face a new rival, Myanmar, which has vowed to take the lead in rice exports in the years ahead.

Pwint San, a deputy commerce minister in Myanmar, said the country shipped 1.5 million tonnes of rice in the first quarter this year - the most in a decade - and plans to sell 4.5 million tonnes annually by 2020.

He told the more than 600 participants from 40 nations at the convention that Myanmar would welcome investment from foreign countries, especially in Asean, to improve its rice industry.

As of May 26, Thailand's rice exports have fallen by 9.6% year-on-year to 2.3 million tonnes.

But Korbsook Iamsuri, president of the Thai Rice Exporters Association, expects positive news in the second half of the year with the baht signalling an export-friendly depreciation.

"If the falling baht narrows the price gap between Thai rice and rivals to US$50-70 a tonne, it will increase the competitiveness of our rice," she said.

(Source: Bangkok Post, AGRICULTURE, Ministry reshuffle follows data leak, As scheme bleeds cash, regional rivals pounce, 28 May 2013, Phusadee Arunmas & Wichit Chantanusornsiri, link)


Rice Industry Vocabulary
 
duties - things that a person do as part of their job ความรับผิดชอบ, หน้าที่รับผิดชอบ, หน้าที่
relieved of her duties - removed from job, lost job, has job taken away  

ministry - a government department dealing with an area of activity กระทรวง
finance ministry - the ministry in charge of budgeting and tracking government spending and to pay for it collecting taxes and borrowing money

deputy permanent secretary at the finance ministry

data - facts or information used for making calculations or decisions ข้อมูล
leak - 1. when the media and public learn about secret information in the government or other organization; 2. (of a liquid or gas) flow out of a hole or crack รั่ว
data leak - when the public and media learn about secret data 

embarrassing - making you feel ashamed, nervous or stupid
embarrassing leaks

Supa Piyajitti has been relieved of her duties as deputy permanent secretary at the finance ministry over embarrassing leaks about the huge cost of the state's rice pledging scheme.

reshuffle - the process of changing the jobs or responsibilities of people in a particular group or organisation การปรับหรือโยกย้ายตำแหน่งคนในองค์กร

Ministry reshuffle follows data leak

scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
cash - money เงินสด
scheme bleeds cash - the government program is losing a lot of money quickly (like a patient losing blood)

regional (adjective) - in the region (here: ASEAN or Southeast Asia)
rivals - opponents; people you are fighting or competing against (to achieve something that not everyone can have; other companies or countries competing for the same customers and purchases) คู่แข่ง คู่อริ
regional rivals - countries that Thailand is competing against in ASEAN (Indonesia, Malaysia, Vietnam, etc)

pounce  - to quickly jump on something (like an tiger attacking an animal it will eat)
regional rivals pounce

As scheme bleeds cash, regional rivals pounce

official - approved by the government or some authority ที่เป็นทางการ
transferred - moved; changed someone's job or responsibilities โยกย้ายตำแหน่ง

reassigned - given or assigned another job
a deputy finance permanent secretary

her role overseeing the debts and expenses group
last week's leaked report predicting big losses for the state's rice pledging scheme

The Finance Ministry has reassigned Supa Piyajitti, a deputy finance permanent secretary, from her role overseeing the debts and expenses group after last week's leaked report predicting big losses for the state's rice pledging scheme.

finance - to provide money for something จัดหาเงินทุนให้
finance permanent secretary

permanent - happening or existing for a long time or for all time in the future ถาวร
permanent secretary

deputy - a person who is given the power to do something instead of another person, or the person whose rank is immediately below that of the leader of an organisation รอง, ตัวแทน,ผู้รักษาการแทน

deputy permanent secretary
deputy finance permanent secretary

role - the position or purpose that someone or something has in a situation, organisation, society or relationship บทบาท
overseeing - managing, checking to see that it operates properly and nothing goes wrong
her role overseeing the debts and expenses group

in charge of

Ms Supa will now be in charge of the Office of the Permanent Secretary and the Fiscal Policy Office. Pongpanu Svetarundra, another deputy permanent secretary, will move from the Fiscal Policy Office to take her place, according to a letter signed by the finance permanent secretary and made public Monday

media - radio, television, newspaper, the Internet, considered as a group สื่อ
local media

populist - a politician who claims to care about the interests and opinion of ordinary people
campaign - a planned series of activities (political, business, military) to achieve a particular aim การรณรงค์
populist campaign

contentious - causing or likely to cause disagreement ซึ่งโต้เถียงกัน, ซึ่งเป็นที่ถกเถียงกัน
contentious populist campaign
the government's most contentious populist campaign

subsidy - when the government pays part of the costs to support some activity  เงินสนับสนุน เงินชดเชยที่รัฐเป็นผู้จ่ายให้
the rice subsidy scheme

estimated - the amount that people calculate or guess it to (not exact, not sure, not certain)
estimated to reach 200 billion baht

projection - guessing a future amount; a calculation or guess about the future based on information that you have การคาดคะเน
up from the previous projection of 70-100 billion baht

Local media widely reported that losses from the government's most contentious populist campaign - the rice subsidy scheme - are estimated to reach 200 billion baht, up sharply from the Finance Ministry's previous projection of 70-100 billion baht.

outlook - what people think will happen in the future ภาพรวม อนาคต อนาคตที่คาดไว้
the outlook for rice exports

gloomy - negative, unhappy, without hope
the outlook remains gloomy

hesitant - waiting to act, not acting quickly
big importers are hesitant to buy more grains

reason - why something or exists เหตุผล
self-reliance - การวางใจในตัวเอง, ความเชื่อมั่นในตนเอง, การไว้ใจตนเอง
for reasons of self-reliance

The second-half outlook for Thai rice exports remains gloomy, with big importers hesitant to buy more grains for reasons of self-reliance.

dependence - cannot do without, need การพึ่งพาอาศัย
reduce dependence - take action so that you need it less
reduced dependence on food imports

productivity - producing more with the same amount of inputs (labour, energy, etc) การผลิตสินค้า
raise productivity

opt for - choose

Indonesia and the Philippines have opted for reduced dependence on food imports, aiming to raise productivity and cut exports.

state - government รัฐ
Indonesian state-owned company

distribution - giving or delivering things to many people การจำหน่ายออกไป
the company in charge of rice distribution

outcome - the situation that exists at the end of an activity or event; outcome - a result ผล
the outcome of the second-crop harvest 

harvest - gather in ripe crops เก็บเกี่ยว gathering fully grown crops from the field การเก็บเกี่ยวผลผลิต
the second-crop harvest 

Sutarto Almoeso, president of Bulog, the Indonesian state-owned company in charge of rice distribution, said local production is healthy this year and the country is awaiting the outcome of the second-crop harvest during the coming wet season.

import - to buy or bring in products from another country นำเข้า
import rice

If production is still good, Indonesia will not need to import rice from either Thailand or Vietnam.

stocks - amounts stored for future use
rice stocks

current - of the present time ปัจจุบัน
current rice stocks

sufficient - enough พอเพียง
a sufficient level 

consumption - using, eating or drinking something การบริโภค
6-8 months of consumption

He said current rice stocks in Indonesia are at a level sufficient for 6-8 months of consumption. 

irrigation - the process of bringing water to land through a system of pipes, ditches, etc. in order to make crops grow ระบบชลประทาน (See Wikipedia)
irrigation systems

support - help สนับสนุน
irrigation systems to support rice farming

generate - to produce ก่อให้เกิด create สร้าง กระตุ้นให้เิกิด
paddy - rice after it has been harvested from the field ข้าวเปลือก
generate more than 14 million tonnes of paddy

Mr Almoeso said Indonesia has improved its irrigation systems to support rice farming and aims to generate more than 14 million tonnes of paddy next year, up from its usual 10 million.

sufficiency - the state of having or being enough
a self-sufficiency scheme

executive - the highest level managers in a company
an executive of the country's National Food Authority

The Philippines is making similar moves with a self-sufficiency scheme aimed at increasing rice production from the current 15 million tonnes of paddy a year, according to Orlan Calayag, an executive of the country's National Food Authority.

plunged - decrease quickly by a large amount

The Philippines imported nearly 200,000 tonnes rice from Thailand in 2011, but the amount plunged to just 3,377 tonnes last year.

global - throughout the world ทั่วโลก ทั้งโลก all over the world, including the whole world
global rice output

A report of the UN Food and Agriculture Organization estimated global rice output this year at 746.7 million tonnes of paddy, a 2.1% rise from 2012.

traditional - things (clothes, music, customs, etc.) that have been part of a country or society for a long time
traditional importers

demand - the need and desire of customers to buy goods and services
demand from traditional importers

rival - a person, team or business that competes with another คู่แข่ง
Thailand's new rival, Myanmar

vowed - promise that something will happen in the future
take the lead - become first, become the leader (in some competition)
in the years ahead - in the future

Myanmar, which has vowed to take the lead in rice exports in the years ahead.

While demand from traditional importers slows, Thailand will soon face a new rival, Myanmar, which has vowed to take the lead in rice exports in the years ahead.

commerce - the activity of buying and selling goods
commerce minister
deputy commerce minister

first quarter - the first three months of the calendar year for government or business
shipped 1.5 million tonnes of rice in the first quarter this year

decade - a period of ten years ทศวรรษ, ระยะเวลา 10 ปี
the most exported  in a decade

annually - happening every year ทุกๆปีด
plans to sell 4.5 million tonnes annually

Pwint San, a deputy commerce minister in Myanmar, said the country shipped 1.5 million tonnes of rice in the first quarter this year - the most in a decade - and plans to sell 4.5 million tonnes annually by 2020.

convention - a large formal meeting of people who do a particular job or have a similar interest, or a large meeting for a political party การประชุม
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
improve - to make better ทำให้ดีขึ้น

He told the more than 600 participants from 40 nations at the convention that Myanmar would welcome investment from foreign countries, especially in Asean, to improve its rice industry.

year-on-year - the amount for a period this year compared to the same period last year
As of May 26, Thailand's rice exports have fallen by 9.6% year-on-year to 2.3 million tonnes.

positive - good ที่ดี ในแง่ดี สิ่งที่ดี  hopeful and confident, or giving cause for hope and confidence ซึ่งมองในแง่ดี
positive news

expects - thinks and believes will happen in the future
expects positive news in the second half

depreciation - when things become less valuable over time
export-friendly depreciation - when the value of the baht decreases then Thai exports become cheaper and more competitive (customers will buy more)

But Korbsook Iamsuri, president of the Thai Rice Exporters Association, expects positive news in the second half with the baht signalling an export-friendly depreciation.

gap - the distance or difference between two things ช่องว่าง
price gap - the difference between the prices of two goods
narrow the price gap between Thai rice and rivals

competitiveness - how well a business can do compared to other firms (does it have lower price or higher quality?); how well a company is able to maintain or gain customers in a market การแข่งขัน
the competitiveness of our rice

If the falling baht narrows the price gap between Thai rice and rivals to US$50-70 a tonne, it will increase the competitiveness of our rice.