Rice corruption: Bigger problem than debt

Corrupt traders find many ways to profit from govt: selling rice for the poor for a profit, substituting cheap foreign rice...

The problem with rice-pledging, says the TDRI expert, is not the farmer, but right here, where corruption at rice mills and by rice traders which steals billions from the trade. (Post Today photo).

Cut can't end rice ills, Nipon says

Graft bigger problem than debts, forum told
24/06/2013
Pradit Ruangdit

A 20% cut in the paddy pledging ceiling price is expected to help the government cut losses but it is unlikely to rein in corruption weighing on the scheme, a rice expert says.

Nipon Poapongsakorn, distinguished fellow at the Thailand Development Research Institute (TDRI), said the cut can lower losses by about 87 billion baht but it it does not strike the corruption problem at its core.

"The release of the rice stocks is where massive corruption takes place," the TDRI's rice expert told a forum hosted by the Thai Journalists Association and the Isra Institute Thai Press Development Foundation.

Mr Thanong said his calculation is based on the ceiling price of 12,000 baht price per tonne and a maximum of 500,000 baht paid to each farming household. The amounts of rice to be pledged are estimated to fall by 17.2%. 

The seminar looked at whether the government's decision to slash the rice-pledging price for the second crop in 2013, from 15,000 baht a tonne to 12,000 baht per tonne, would help the embattled programme. 

"The slashing of the pledging price does not affect any stakes which rice millers or state officials have in the programme. It just takes away money from rice farmers," Mr Nipon said.

However, the cut will allow the government more room to continue with the rice pledging scheme which is planned for four harvest seasons.

Mr Nipon urged the government to scrap a regulation in which rice mills are allowed seven days to send milled rice to the government's silo.

The seven-day period allows rice millers to buy cheap paddy rice from neighbouring countries and pass it off as the pledged rice, he said.

He said about 3 million tonnes of rice held in the government stock has questionable origins.

"This is probably why the government can't close the account for 2012/2013 harvest. There is more rice in stock than there is supposed to be," Democrat list-MP Kiat Sittheeamorn said.

He said the government is wrong to treat information relating to the scheme as confidential. 

"The prime minister says the scheme is transparent. But how can it be scrutinised when there is no information," he said. 

Somporn Isawilanont, a senior academic, said the price cut is merely a way for the government to reduce the scheme costs, which are higher than expected.

However, he said slashing the price will encourage the private sector to compete with the government and buy rice from farmers for export.

Senator Yutthana Thaipakdee said the release of rice stockpiles is plagued with irregularities, especially the government's sales of packed rice under the Commerce Ministry's low-cost Blue Flag programme.

About 2.5 million tonnes of rice is being sold for the Blue Flag scheme to be made into 500 million packs of rice.

He said a senate committee investigated the matter and found that private companies contracted to make packed rice have failed to hand over the crop.

It is suspected the rice price was reduced to 7,500 baht per tonne when released and was sold back on to the market at between 13,000 and 14,000 baht per tonne.

These private companies have made 15-20 billion baht in profit from this activity, which is also the government's loss, he said.

Rangsan Kasulong, a farmers' representative, lashed out at the government for cutting the price.

"We didn't ask for 15,000 baht per tonne. The government put it in our hands and after that the production costs rose," he said.

He said the farmers will submit a petition against the price cut to the government tomorrow.

Meanwhile, the Pheu Thai Party is bracing itself for a backlash against the price cut.

Party spokesman Prompong Nopparit said MPs will meet this week to listen to feedback.

He said the party will send its MPs to discuss the matter with farmers and counter the opposition's allegations.

(Source: Bangkok Post, Cut can't end rice ills, Nipon says; Graft bigger problem than debts, forum told, 24/06/2013, Pradit Ruangdit, link) 


Rice Industry Vocabulary

ills - problems or difficulties ปัญหา
rice ills

Cut can't end rice ills, Nipon says

corruption - (See Wikipedia on bribery & political corruption)
graft - Same as "corruption"

forum - a place where people can express their ideas and opinions,  discuss and debate issues การประชุมแสดงความคิดเห็น

Graft bigger problem than debts, forum told.

ceiling - an upper limit เพดาน ขีดจำกัด
ceiling price

paddy - rice after it has been harvested from the field ข้าวเปลือก
paddy pledging
paddy pledging ceiling price

scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
paddy pledging scheme

expected - believe will happen คาดว่า (จะเกิดขึ้น)
cut expected to help the government cut losses

rein in - control and reduce or stop 
rein in corruption

weighing on ... - creating a severe problem for ...
unlikely to rein in corruption weighing on the scheme

A 20% cut in the paddy pledging ceiling price is expected to help the government cut losses but it is unlikely to rein in corruption weighing on the scheme, a rice expert says.

trade - the buying and selling of goods การค้าขาย
rice trade

The problem with rice-pledging, says the TDRI expert, is not the farmer, but right here, where corruption at the milling and merchant level steals billions from the trade.

distinguished - describes a respected and admired person, or their work มีชื่อเสียง
fellow - used for talking about people who are similar to you or are in the same situation เพื่อนร่วมชะตากรรม
distinguished fellow

distinguished fellow at the research institute TDRI

strike - a sudden attack การโจมตี
core - the most important and central part แกนนำ,  ส่วนสำคัญ, แก่น สิ่งที่สำคัญที่สุด
strike the problem at its core
the measures do not strike the corruption problem at its core

Nipon Poapongsakorn, distinguished fellow at the Thailand Development Research Institute (TDRI), said the cut can lower losses by about 87 billion baht but it it does not strike the corruption problem at its core.

stocks - large amounts stored for future use
rice stocks

release - to allow something to leave or  flow out from somewhere ปล่อย
release of the rice stocks

stocks - large amounts stored for future use
rice stocks

massive - very large in size, amount or numberใหญ่โต มหาศาล
massive corruption

The release of the rice stocks is where massive corruption takes place

maximum - the most possible ที่สูงสุด ที่มากที่สุด
household - a group of people, often a family, who live together ครัวเรือน
a maximum of 500,000 baht paid to each farming household

Mr Thanong said his calculation is based on the ceiling price of 12,000 baht price per tonne and a maximum of 500,000 baht paid to each farming household.

pledged - seriously promised to do something สาบาน
The amounts of rice to be pledged are estimated to fall by 17.2%. 

slash - to cut; of a budget, price, etc.) to cut, especially by a large amount ตัด
slash price - lower price, decrease price 
the government's decision to slash the rice-pledging price

embattled - facing a lot of problems, having a lot of problems
the embattled rice programme  

The seminar looked at whether the government's decision to slash the rice-pledging price for the second crop in 2013, from 15,000 baht a tonne to 12,000 baht per tonne, would help the embattled programme. 

state - government รัฐ
state officials

stake - what someone can gain from some activity or business (depending on outcome, what happens)
stakes which rice millers or state officials have in the rice programme

"The slashing of the pledging price does not affect any stakes which rice millers or state officials have in the programme. It just takes away money from rice farmers," Mr Nipon said.

harvest - gathering fully grown crops from the field เก็บเกี่ยว การเก็บเกี่ยวผลผลิต
harvest seasons.

allow more room to - make situation easier to manage and deal with (allow for more flexibility and wider range of decisions) 

However, the cut will allow the government more room to continue with the rice pledging scheme which is planned for four harvest seasons.

scrap - to get rid of; to stop using or accepting เลิก, ทิ้ง
regulation - the laws that control and govern the industry or activity; an official rule that controls the way that things are done กฎระเบียบ ระเบียบข้อบังคับ
scrap a regulation

urged - requested them to do,  advised someone very strongly about what action should be taken วิงวอน
urge government to scrap a regulation

Mr Nipon urged the government to scrap a regulation in which rice mills are allowed seven days to send milled rice to the government's silo.

pass it off as 
pass  off cheap paddy rice from neighbouring countries as the pledged rice

The seven-day period allows rice millers to buy cheap paddy rice from neighbouring countries and pass it off as the pledged rice, he said.

stock - an amount of something that you keep so that you can use it when you need it ที่เก็บไว้ในสต๊อก
government stock stock
rice held in the government stock

questionable - involving doubts about whether something has been done properly ที่น่าสงสัย
origins - the beginning or cause of something แหล่งกำเนิด
questionable origins

He said about 3 million tonnes of rice held in the government stock has questionable origins.

close the account - close the account books (finally sell of remaining stock and realize profit or loss and record it in accounting system)
the government can't close the account for 2012/2013 harvest

This is a probably why the government can't close the account for 2012/2013 harvest. There is more rice in stock than there is supposed to be.

confidential - secret, private information; often in a formal, business or military situation ที่เป็นความลับ
treat as confidential
treat information relating to the scheme as confidential

He said the government is wrong to treat information relating to the scheme as confidential. 

transparent - visible to the public, not keeping anything secret; open โปร่งใส
scrutinised - carefully examined, looking for problems or flaws ตรวจสอบอย่างละเอียด

The prime minister says the scheme is transparent. But how can it be scrutinised when there is no information.

academic - someone who teaches at a college, or who studies as part of their job นักวิชาการ

Somporn Isawilanont, a senior academic, said the price cut is merely a way for the government to reduce the scheme costs, which are higher than expected.

sector - a part of a country's economic or business activity ภาค (เศรษฐกิจ)
private sector

encourage - to make someone more likely to do something, or to make something more likely to happen ปลุกใจ
encourage the private sector to compete with the government

However, he said slashing the price will encourage the private sector to compete with the government and buy rice from farmers for export.

stockpiles - large amounts stored for future use กองสินค้าในโกดัง
rice stockpiles
the release of rice stockpiles

plagued - caused a lot of problems for someone or something for a long period of time ทำให้ยุ่งยาก ลำบากมานาน
irregularities - a situation in which the rules, laws or usual ways of doing something have not been followed;  things that are not normal, that often mean there is corruption or cheating ความไม่สงบ

plagued with irregularities
the release of rice stockpiles is plagued with irregularities

packed - when a product is put in a bag or package to make it ready to sell in a store
packed rice
the government's sales of packed rice

packs of rice
private companies contracted to make packed rice

Senator Yutthana Thaipakdee said the release of rice stockpiles is plagued with irregularities, especially the government's sales of packed rice under the Commerce Ministry's low-cost Blue Flag programme.

matter - a situation or subject which is being dealt with or considered เรื่อง, ภารกิจ, งาน; สิ่งที่พูดถึง ประเด็นที่พูดถึง
investigate the matter
a senate committee investigated the matter

About 2.5 million tonnes of rice is being sold for the Blue Flag scheme to be made into 500 million packs of rice. He said a senate committee investigated the matter and found that private companies contracted to make packed rice have failed to hand over the crop.

suspected - thought to be something เป็นที่สงสัย
It is suspected the rice price was reduced to 7,500 baht per tonne

released - made available to the public
the rice was released

It is suspected the rice price was reduced to 7,500 baht per tonne when released and was sold back on to the market at between 13,000 and 14,000 baht per tonne.

profit - money that you make from selling goods and services after all your costs have been paid กำไร

These private companies have made 15-20 billion baht in profit from this activity, which is also the government's loss, he said.

representative - 
a farmers' representative

lash out at - attack in an angry way
lashed out at the government

Rangsan Kasulong, a farmers' representative, lashed out at the government for cutting the price. "We didn't ask for 15,000 baht per tonne. The government put it in our hands and after that the production costs rose," he said.

submit - officially give a document to an organisation; to formally give something to someone so that can make a decision about it ยื่น (เอกสาร) เพื่อการพิจารณา
a petition against the price cut

petition - a document signed by a large number of people demanding or requesting some action from the government or another authority การถวายฎีกา,การร้องเรียน a formal request for action to be taken, made to a court of law การยื่นอุทธรณ์ to ask someone in authority to do something ยื่นคำร้อง
submit a petition

He said the farmers will submit a petition against the price cut to the government tomorrow.

bracing itself for - preparing to deal with a problem (that is difficult to solve)
backlash - a strong negative and often angry reaction to something that has happened การสะท้อนกลับอย่างรุนแรง ปฏิกิริยาโต้ตอบอย่างรุนแรงและทันที
bracing itself for a backlash

Meanwhile, the Pheu Thai Party is bracing itself for a backlash against the price cut.

feedback - when output from an event in the past influences the same event in the future (when an event is part of a chain of cause-and-effect that forms a circuit or loop, the event feeds back into itself (See Wikipedia)
listen to feedback

Party spokesman Prompong Nopparit said MPs will meet this week to listen to feedback.

allegations - accusations; statements that someone had done something wrong or illegal even though this has not been proved ข้อกล่าวหา
the opposition's allegations

counter - to reply to a criticism or statement that you disagree with; to take action to oppose or stop something ต่อต้าน
counter allegations
counter the opposition's allegations

party - political party

He said the party will send its MPs to discuss the matter with farmers and counter the opposition's allegations.