Future Thai Rice Policy from a Global Perspective: To Be or Not to Be?

Abstract

     The case describes the main features of the recently abrogated rice pledging scheme and contrasts it with the rice price guarantee scheme of the predecessor government.  Also recounted are some of the main problems that implementation of the pledging scheme triggered – problems that eventually, in May 2014, led to the court-ordered ouster of the prime minister and, later, to the military’s takeover of the functions of government.  As the case draws to a close, it is intimated that some  form of continued assistance to rice farmers would be needed, despite the statement of the new military head of government that there would be no further rice pledging or rice price guarantee schemes.  Thus, the student-analyst is left to grapple with the appropriate contours of Thai rice policy in the future.  Based in part on an examination of the rice and agricultural policies (and their consequences) of other countries, the analyst’s challenge is to determine what specific government rice crop support policies should replace the rice pledging scheme, and under what conditions.  If recommended new forms were to entail farmer subsidization, then the student-analyst has to specify the sources of budget, and demonstrate the sustainability of such support in the future.