Thai govt told to urgently sell stockpiled rice

[webfact]

Govt told to urgently sell stockpiled rice
By Digital Content



BANGKOK, Feb 8 – The caretaker government was recommended to urgently release 18 million tonnes of rice from the state stockpiles to secure money to pay farmers.

Att Pisanwanit, Director of the Center for International Trade Studies (ITS) of the University of the Thai Chamber of Commerce (UTCC), said the government should accept losses by selling rice at US$350-400 per tonnes, lower than the price currently offered by Vietnam, to earn about Bt200 billion which should be more than sufficient to pay the current Bt130 billion overdue payments.

The government can spend the remaining Bt70 billion raised to help farmers in other agricultural products such as rubber and tapioca, he said.

Mr Att, dean of the UTCC Faculty of Economics, said that in the last decade since the Thaksin Shinawatra government in 2001, the Thai government has allocated a total of Bt1.5 trillion to help farmers and the Yingluck Shinawatra government has become the biggest spender at Bt700 billion, or more than half of budget expenses.

Production costs for Thai farmers between 2006 and 2012 have increased 60 per cent, from Bt4,000/rai to Bt9,000/rai but the yield per rai has not been higher.

Thailand’s yield per rai for rice production is only one-third of the Vietnamese, he said, adding that Thai farmers produce 450 kg of rice per rai while the Vietnam’s rice production is one tonne per rai.

Mr Att said the government should adjust its long-term assistance policy for farmers by refraining from rice trading intervention and offering appropriate assistance options for farmers. (MCOT online news)


-- TNA 2014-02-08

[Costas2008]

[Showbags]

Urgently sell stock piled lice...duh

[Crushdepth]

They hadn't thought of this?

[transam]

Wow, someone came up with an idea....

[Crushdepth]

Nah...that will nevah work

[Pib]

Isn't the article from the movie Ground Hog Day?

[dru2]

Even if this can be done, how would such a policy be viewed by the World Trade Organization (never mind Vietnam and India)? Wouldn't it be classified as "dumping"? And if it was dumping, how would this affect the Thai government under international law?

[noitom]

This is good, if the Thai rice isn't all rotted out by now and over run with vermin and their feces.

[tim armstrong]

The yield per rai is lower in Thailand for Jasmine rice, but it normally gets a much higher price than other grades, on the International market. But the idea is a good one and obvious. Of course there is always the possibility that the courts will want to ask where the initial budget has gone. The government still thinks it can blame someone else for their corruption.

[PeVee1st]

But the big boss said we will set the market price. What went wrong???

If Thai farmers are only 45% efficient as there Vietnamese opposition in the rice trade, then A Government neefs to look at that problem.

Maybe adopting farlang farming methods may help!!!!

5555555 but we know that will happen !!!!! Soon !!!!!!!

Sent from my GT-I8160 using Thaivisa Connect Thailand mobile app

[Scamper]

When over half a budget is spent on a programme that has no solvency built in and guarantees an escalating debt, that delegates graft through the administering of it, that is masked in subterfuge, that has no public transparency, that is full of backroom deals, and on top of that, only administers 18 % to the poorest farmers - it is time to stop it, sell the rice at a loss, pay the farmers, and resign.

[Why ask]

Who's actually going to buy it? Especially at knocked down prices.

First question always is, "Boy this is cheap, what's wrong with it?"

[bunnydrops]

There was already a reported fear of Thailand dumping the stockpile onto the world market. I'm not sure how that would go over with the other rice growing countries. But I am sure they could sell some at a low price.

[bigbamboo]

Even if this can be done, how would such a policy be viewed by the World Trade Organization (never mind Vietnam and India)? Wouldn't it be classified as "dumping"? And if it was dumping, how would this affect the Thai government under international law?

Given the shitty state of some of the rice 'dumping' is probably the appropriate word. .

Edited February 8, 2014 by bigbamboo

[speedtripler]

someone didnt study much mathmathics before writing this crap ,since when was 450kg / from 1000kg a third ?

[ratcatcher]

Wow, someone came up with an idea....

[PaullyW]

someone didnt study much mathmathics before writing this crap ,since when was 450kg / from 1000kg a third ?

Ekscuu me. Thai math not same farang math

[bunnydrops]

Link to The Nation about rice dumping

http://www.nationmultimedia.com/business/US-fear-over-Thai-rice-dumping-is-groundless-30192701.html

[Melyn]

The government should have been doing this since the beginning.

The problems now are many

There isn't much demand

It will take time to find buyers and get transport

The WTO will be watching

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

[huahinjoe]

Ladies and Gentleman, rice for sale:

tulsathit ‏@tulsathit14h

This may sum rice scheme up. RT @PatricLand: Govt rice warehouse in Lopburi

[I knew this would happen]

someone didnt study much mathmathics before writing this crap ,since when was 450kg / from 1000kg a third ?

Ekscuu me. Thai math not same farang math

No that´s actually correct math for the rice scam,

a third from 1000 is 333. The writer only added the standard corruption factor of about 40% for the middle men.

[drand11]

Jeesh, how can anyone hold onto ruce do long and cause thrmselves soò many problems. The market is the market!! Sellll

[Robby nz]

All that is assuming;

A, that there is 18 million tons there.

B that it all in saleable condition

C, that someone would be willing to buy it.

The dumping question aside, there is at present a global glut with new exporters like Brazil and Argentina coming into the market.

The quality would certainly be in question as Ivory Coast and Iran will no longer buy Thai rice and the US returned a shipment, then there is the supposed deal with China that would raise other questions with prospective buyers.

They haven't had much joy with selling by the last auctions with less than half being sold.

Add to that the new seasons crop which is coming on (some being harvested now) would be in direct competition and would be much more desirable than stored crop.

The traders will now have the opportunity to buy the new crop directly from the farmers as they wont trust the Govt anymore, this means the traders can get the rice even cheaper than that from the Govt as the farmers have been forced into a debt situation by non payment and will be desperate for money.

The farmers will still have the interest on the loans they have been forced to take out to pay off and with being forced to accept low prices will be screwed from all directions.

Go Yingluck champion of the poor farmers.

[I knew this would happen]

Thats like Thai Airways economics, it´s better to keep your old rotting A340 planes in the books with your own estimated fantasy value, so you can call it an asset and say: Hey we don´t have losses from it.

[fab4]

And the government sells the stockpiled rice at a price undercutting the international rice prices, and 10 - 1 on, the dems would complain and file a court case for malfeasance or similar............

[Melyn]

And the government sells the stockpiled rice at a price undercutting the international rice prices, and 10 - 1 on, the dems would complain and file a court case for malfeasance or similar............

The WTO would beat them to it

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

[Why ask]

All that is assuming;

A, that there is 18 million tons there.

B that it all in saleable condition

C, that someone would be willing to buy it.

The dumping question aside, there is at present a global glut with new exporters like Brazil and Argentina coming into the market.

The quality would certainly be in question as Ivory Coast and Iran will no longer buy Thai rice and the US returned a shipment, then there is the supposed deal with China that would raise other questions with prospective buyers.

They haven't had much joy with selling by the last auctions with less than half being sold.

Add to that the new seasons crop which is coming on (some being harvested now) would be in direct competition and would be much more desirable than stored crop.

The traders will now have the opportunity to buy the new crop directly from the farmers as they wont trust the Govt anymore, this means the traders can get the rice even cheaper than that from the Govt as the farmers have been forced into a debt situation by non payment and will be desperate for money.

The farmers will still have the interest on the loans they have been forced to take out to pay off and with being forced to accept low prices will be screwed from all directions.

Go Yingluck champion of the poor farmers.

Add to that the new seasons crop which is coming on (some being harvested now) would be in direct competition and would be much more desirable than stored crop.

It's all ok. They can mix it. Nobody will ever know.

[tomacht8]

Besides the idea to sell the rice before it rots, it would be a good idea to try to get back the money (or parts thereof),
which are lost only by corruption and nepotism.

In addition I guess between 200 - 300 Billion Baht corruption has cost.

I'm sure if they would trace the flow of money they could win more than 130 Billion Baht back,
but this government does not disclose the facts, the figures and the receivers.

Why?

I know many know the answer.

The money is there to pay the farmers, but it is now in dubious pockets!

Furthermore, why are the production costs increased so dramatically?

Simple,

many farmers have to rent their farmland.

The large land owners (they are elite too) have until now, every year increased the land rents, always to the threshold of pain.
Many many farmers sitting now in the debt trap.

The damage from this senseless scheme is so gigantic that Thailand has lost its competitiveness for years to come.

If all these landless farmers come with their pitchforks to Bangkok, then good night Thailand.

[tomross46]

But the big boss said we will set the market price. What went wrong???

If Thai farmers are only 45% efficient as there Vietnamese opposition in the rice trade, then A Government neefs to look at that problem.

Maybe adopting farlang farming methods may help!!!!

5555555 but we know that will happen !!!!! Soon !!!!!!!

Sent from my GT-I8160 using Thaivisa Connect Thailand mobile app

Fariang farming methods can only be used on large corporate farms. Planting rice with a machine would put the average rice farmer into a cost they can not afford. The ROI would not justify the expense. Spreading fertilizer pesticides and herbicides with an air plane, how much does that cost.

The present rice pledging could cause the average farmer to lose his land because of non performing loans. There by corrupt politicians could take the land and set up large corporate farms. They would need some help from their friends in the UAE.