High production costs force rice mills to beg for government aid

By The Nation

 

 

Rice mills are seeking government aid as drought has delayed rice harvests in the Central region, causing an oversupply, which will force mills to purchase more rice than they are prepared for.

 

 

Kriengsak Tapananon, president of the Thai Rice Mills Association, said weather conditions in the Central region has forced farmers to sow rice in August, delaying the harvest season to between October and November.

 

“The price of finished rice may also drop because there will be an oversupply as farmers in the North and Northeast also harvest rice at around October to November every year,” he said, adding that rice mills will need to be financially prepared to purchase the entire harvest.

 

Also, he said, since rice mills are not producing at their full capacity this year, their earnings have also dropped.

 

“Rice mills will be producing 50 to 60 per cent less, which means their production costs will rise. Many mills will have to bear a heavier burden, especially the burden of employees’ wages, as they have not laid off any workers. Hence, we are calling on the government to grant loans or postpone the repayment of debts,” he said.

 

He added that he was concerned about exporters being unable to pay rice mills due to brokers’ default in payment.

Meanwhile, Charoen Laothamatas, president of Thai Rice Exporters Association, said Thailand has only exported 3.3 million tonnes of rice in the first seven months of this year.

“However, we have to monitor the production of rice in the last quarter to see if Thailand reaches its export target of 6.5 million tonnes or not,” he said.

 

He added that purchase orders for Thai rice were recently low because the price of 5 per cent Thai white rice was around US$500, compared to $478 from Vietnam, $370 from India and $390 from Pakistan.

 

Source: https://www.nationthailand.com/news/30394026

 

-- © Copyright The Nation Thailand 2020-09-05

 

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2 hours ago, rooster59 said:

Rice mills are seeking government aid as drought has delayed rice harvests in the Central region, causing an oversupply

That seems a contradiction,when there is a drought,less rice

should be produced,but here they are saying it's causing an

oversupply,Rice Mills the latest ones to ask for government

hand out,and I thought they in the past have done very well,

if it's not the farmers making profit from rice,it must be the millers.

regards Worgeordie

Those parasites are the last ones I would give a government handout to.

What a scam, these are some of the richest people in Thailand. 

Here we go again, it's raining help, the suns shining help, the price is low help, the price is high help.

Under supply help, over supply help !

An excuse for everything, I've never met a poor rice miller yet!

5 hours ago, rooster59 said:

Rice mills are seeking government aid as drought has delayed rice harvests in the Central region, causing an oversupply

there is drought & delay, but this cause an oversupply ?

 

thai economics at work

2 hours ago, worgeordie said:

That seems a contradiction,when there is a drought,less rice

should be produced,but here they are saying it's causing an

oversupply,Rice Mills the latest ones to ask for government

hand out,and I thought they in the past have done very well,

if it's not the farmers making profit from rice,it must be the millers.

regards Worgeordie

Yes I agree. It does seem like a contradiction however, the report excludes the word "later" on the end. Problem is that the delay will cause all the harvested rice for the two seasons to arrive at the same time and the mills don't necessarily have storage space for it.

Mega rich Thai/Chinese rice miller families who have been scamming/ shafting the poor farmers for generations are asking for a tax payer handout...Ha ha....hahahaha..FO

The sino/thai agro cartels looking for the handouts and control the rice industry need to stop the field burning practices that cause such horrendous air pollution effecting millions of Thai peasants 6-8 months of the year! Enough already.

5 hours ago, worgeordie said:

That seems a contradiction,when there is a drought,less rice

should be produced,but here they are saying it's causing an

oversupply,Rice Mills the latest ones to ask for government

hand out,and I thought they in the past have done very well,

if it's not the farmers making profit from rice,it must be the millers.

regards Worgeordie

That's is what I thought but read on and you will find it's because two harvest which are normally separated because of flooding they will be harvested at the same time. Bad headline.

2 hours ago, Muhendis said:

Yes I agree. It does seem like a contradiction however, the report excludes the word "later" on the end. Problem is that the delay will cause all the harvested rice for the two seasons to arrive at the same time and the mills don't necessarily have storage space for it.

What happened to all the ric storage barns that there used to be under Yinglucks government? They bought every kg that the rice farmers produced.

8 minutes ago, billd766 said:

What happened to all the ric storage barns that there used to be under Yinglucks government? They bought every kg that the rice farmers produced.

They're full with expensive cars.

3 hours ago, Muhendis said:

Yes I agree. It does seem like a contradiction however, the report excludes the word "later" on the end. Problem is that the delay will cause all the harvested rice for the two seasons to arrive at the same time and the mills don't necessarily have storage space for it.

That does explain the arguement as put  but ignores the fact that if it were a "normal" season it would be  bulked stored as "normal" for later processing.

IMO this  is  just an attempt to  dip into the guaranteed  price which is incidentally significantly more than the farmers ever  get !

 

8 hours ago, rooster59 said:

However, we have to monitor the production of rice in the last quarter to see if Thailand reaches its export target of 6.5 million tonnes or not

ricely put if a little grainy on the detail .. 

9 hours ago, rooster59 said:

He added that purchase orders for Thai rice were recently low because the price of 5 per cent Thai white rice was around US$500, compared to $478 from Vietnam, $370 from India and $390 from Pakistan.

I get the feeling the plan will be rather than reducing rice by 25% to compete with India, they will put it up 25% to try to bridge the loss

6 hours ago, Grumpy John said:

Those parasites are the last ones I would give a government handout to.

Even if they were relatives or good "friends" ?  

11 hours ago, rooster59 said:

He added that purchase orders for Thai rice were recently low because the price of 5 per cent Thai white rice was around US$500, compared to $478 from Vietnam, $370 from India and $390 from Pakistan.

Says it all doesnt it !

Thai Rice prices are not competitive on the Global Markets

Market forces when it suits, begging bowl when it doesn't.

 

Shysters.

 

Rice is so expensive in this country, and it's not all that good either. No wonder there are subsistence farmers and local rice machine operators.

21 hours ago, Scot123 said:

That's is what I thought but read on and you will find it's because two harvest which are normally separated because of flooding they will be harvested at the same time. Bad headline.

Is it possible to harvest "2 harvests" at the same time?

I thought growing would naturally give a separation time, enough for millers to process the 1st one?