The Pheu Thai government now is stuck with a serious problem.
My question: "Is the government considering this as a serious problem?"
Commerce Minister, Boonsong Teriyapirom has finally said what everyone knew he would have to say. Mr Boonsong said on Friday he intends to put seven million tonnes of rice on the market. He will try to sell it to foreign governments, and he will open auctions inside the country and he knows it will be sales for losses.
No, honestly, I did not know. He always said everything was hunky dory. The Chinese would buy it all!
So now the government knows that is a losing business. People in the government are slow learners. Experts warned them about the loss way before they started the scheme. Even a young business man can tell you the principles of marketing
1. when the price of a commodity is falling, one would not buy it, and wait until the price bottoms out
2 one would not buy high and sell low.
3. one would watch the market carefully, the market is the master and dealers follow the suit.
4. one must be honest to have long term business.
The major losses to the nation cannot go on indefinitely, but the government obviously has no idea how to climb off the tiger's back.
Yes, they know. Quit the scheme and try to sell the rice at the market prices and take the loss before it becomes insurmountable and bankrupt the country. I think the editor was wrong to opine that they could not quit because they would upset the farmers , their main constituency. What farmers? None of them benefit a dime out of this scheme, you know it all goes to the middle man, the lands owners , the rice millers, and may be the government's officers and politicians too. Yet, Mr. Editor, there is some more blood to be squeezed out of this turnip, or may we say, this lemon.
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