Finally, what to do with the price of rice? This is a regular issue in Thai politics. The question is whether city people should get cheaper food or the farmers should get higher incomes. The ousted government of Yingluck Shinawatra attempted to raise the market price of rice through government intervention. The only way they could manage this while exporting rice at the global price was by absorbing the loss as a subsidy. In a bid to dodge the blow they tried to corner the global market in the belief that then they could sell the rice at a higher price. When this ploy failed Ms Yingluck ended up with a large stockpile of rice and was found guilty of negligence by a national anti-graft commission for her role in the scheme. The junta has just sanctioned one-off payments of $1.2 billion to small rice farmers. It is yet to announce a policy going forward. Though its method of delivery may differ, the junta will have little option but follow the example of Ms Yingluck and pay off farmers in exchange for their political support.
The members of the triumphant mob that cheered the army to power are still enjoying their victory. Playing politics with the economy is an expensive business. The costs to Thailand’s economy are still piling up. Compared with trend economic growth the cost will be perhaps $20 billion to $30 billion from 2014 to 2016, which makes it roughly equal in value to the wealth of the Thai monarchy. One can only hope the junta’s upcoming performance is good enough to offset such a loss.