Reducing rice exports unlikely to impact domestic price: Internal trade office

[webfact]

Reducing rice exports unlikely to impact domestic price: Internal trade office

By THE NATION

 

Wichai

 

The Department of Internal Trade director-general Wichai Phochanakit announced on Thursday (October 3) that his department will introduce measures to prevent domestic rice prices from plummeting.

 

The move follows the reduction in 2019 rice exports by the Rice Exporters Association from 9.5 to 8.5 million tonnes. “For example, we will urge farmers to postpone selling harvested rice until the price goes back to normal levels,” he said. “It should not take long since we have no rice left in stock and consumer’s demand is rising steadily.”

 

Wichai further explained that one of the factors behind the association’s decision to reduce export volume was the strength of the baht, making the price of rice unfavourable to importers such as China, the EU and US. “It is not only rice exports that are affected by the baht appreciation, other agricultural products are too,” he said. “To solve this issue, the Bank of Thailand must urgently introduce monetary measures to weaken the baht.”

 

The director-general added that the reduced export volume should not affect the price guarantee scheme, since currently only the price of white rice is spiking, while the rest remain within normal range. “Next week the reference price committee will announce the first batch of reference prices, and by October 15 will deliver the funds to farmers who previously registered under the scheme,” said Wichai.

 

Five types of rice are guaranteed under the scheme with the following conditions: Hom Mali rice from the Northeast is guaranteed Bt15,000 per tonne up to 14 tonnes per household, Hom Mali rice grown elsewhere is guaranteed Bt14,000 up to 16 tonnes, round-grain rice is guaranteed Bt10,000 up to 30 tonnes, Hom Pathum Thani rice is guaranteed Bt11,000 up to 25 tonnes, Glutinous rice is guaranteed Bt12,000 up to 16 tonnes.

 

“If farmers grow more than one type of rice, the combined quantity must not exceed the maximum limit for the type with the highest limit,” Wichai explained.

 

Source: https://www.nationthailand.com/news/30377050

 

-- © Copyright The Nation Thailand 2019-10-04

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[legend49]

“It should not take long since we have no rice left in stock and consumer’s demand is rising steadily.”

 

Spin doctors at work again? No one is buying the over priced Thai rice its all about rice from Vietnam, its cheaper and better quality. Even Thai smugglers are trying to truck it across the border.

[alien365]

Domestic rice prices falling? The 5kg rice I normally buy for about 150 baht was 190 baht today. I refused to buy it and chose a cheaper alternative. I usually buy 20kg at a time so that's an extra 160 baht. No chance

[RichardColeman]

6 hours ago, webfact said:

For example, we will urge farmers to postpone selling harvested rice until the price goes back to normal levels

I'm sure that the bank will accept non-payment of mortgage or pick-up as 'government told me not to have any income this month.

[happy chappie]

 I just paid 47b a kg.as for asking the farmers to postpone selling their produce there's no chance,they will think they might get stuck with it.if you say to a Thai here's 10,000b today or 20,000b next month I know they would go for option 1.

[Tayaout]

This is hilarious but not for the rice farmers. 

[Dumbastheycome]

There is a reduction in  export  demand due to  high Baht  value.

If the  current year production is sufficient  to  provide local demand at nominal price why any  question about price increase?

The  question  about this is only of interest to those  who scam the  farmers.

The  Government  guaranteed price is  reserved  for those intermediary agent buyers to forward  to  the  Government stores ! Eat  it, sell it  to  the  neighbours, fatten  your  chickens, pigs, or let it  rot!

Let the  smug  consumer understand  where they take for granted , the greedy  agents who  with  condescention "accomodate" the people who  feed  them  while  denying them the  real  value !

 

[kevin612]

Rising baht is killing export.

[HeyHeyHey]

15 hours ago, webfact said:

The move follows the reduction in 2019 rice exports by the Rice Exporters Association from 9.5 to 8.5 million tonnes.

Really? From 9.5 to 8.5?

 

So why it was down 44% in August?

[BuckBee]

But BoT happy with the Baht, no problem they say .

Only reason rice rise locally is they trying cover losses from poor exports .

While the elite rich are basking in growing wealth and easy pickings from state funds the farmers and lower class workers are up to armpits in debts and floods .

All these nice military toys and new navy playboy mansion but no one can spend on water management or better the currency value to better the export dilemma .

Going be a lot of fat pigs, government ones from feeding from the state trough and farm piggies from eating all the unwanted rice stock, uncle buck banana doing a grand job making previous prime ministers look half good lol .

[Cadbury]

8 hours ago, kevin612 said:

Rising baht is killing export.

Your'e right but it is not just the baht so far as rice is concerned. Thailand is claimed to be the world's No. 1 exporter but it seems that's might be coming to an end.

1. Increased competition from Vietnam.

2. China dumping excess old stocks on traditional international Thai customers at discount prices.

3. Many Thailand rice growers operating like they did in 16th century.

4. Poor irrigation systems and lack of government action other than talk.

5. Government meddling in marketing combined with loopy subsidy schemes.

[happy chappie]

The only thing consistent with this government is the constant bs they come out with.even though it might of been a bad year for rice there will be a glut and if one farmer is selling his rice early in the game next door will follow for sure.supply and demand and with exports down there will be a good shed full doing nothing.

 

[worgeordie]

So the Thai consumer (that does not grow rice) has to pay more

for their bag of rice,while their taxes are use to keep the price

artificially high.....can you see whats wrong there.

regards worgeordie

 

[hotchilli]

A couple of months ago they were checking stocks of "sticky-rice" to make sure people were not hoarding it to increase the price due to a shortage, now they're telling them to hoard normal rice to push up the price and sell later to gain the increase !!!

Meanwhile Vietnam manage to produce and sell a better quality rice at a lower price.

 

[Srikcir]

5 hours ago, Cadbury said:

Thailand is claimed to be the world's No. 1 exporter but it seems that's might be coming to an end.

India has been the world’s top rice exporter since the beginning of this decade.

https://www.thehindubusinessline.com/opinion/columns/c-p-chandrasekhar/the-dynamics-of-indias-rice-export-boom/article25994349.ece

[Cadbury]

3 hours ago, Srikcir said:

India has been the world’s top rice exporter since the beginning of this decade.

https://www.thehindubusinessline.com/opinion/columns/c-p-chandrasekhar/the-dynamics-of-indias-rice-export-boom/article25994349.ece

Yes, thanks for the correction. I had in mind jasmine rice.