~Meaw & More~

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Reactive blogger (~and more~)

2 Highs or Too High

Bangkok Post today published Dhanin pushes for ‘2 Highs’ theory  The Dhanin in question is The chairman Chearavanont,of the agribusiness conglomerate Charoen Pokphand or CP.

According to Dhanin’s 2 highs theory:

…the country owes a lot to Thai farmers, as they plant rice to feed the nation. He said the country’s administrators must try every means to shore up rice prices because food for human consumption should not be cheaper than fuel for machinery.… Mr Dhanin illustrated his point, saying that last year Thailand exported 9 million tonnes of rice, earning about 100 billion baht. He said it would be better if the country exports only 4 million tonnes, but still earns the same 100 billion baht, keeping the surplus 5 million tonnes within the country…The CP chairman also said the government should strive to raise wages for the average worker as well… (italic mine)

Last week I went to buy sticky rice and found that despite the news of farmer’s end price was plunging, it is still expensive in Bangkok. The reason that the price should be high and to be compensate with increased salary seemed rather ineffective to make ” independent farmers” confident enough to keep growing rice. For corporate sponsored contract farming, it is completely the other matter.

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