Well I Never

Lost: 200,000 tonnes of rice

Government sources said on Monday $100 million worth of rice has gone missing from national warehouses.

At the same time, rice farmers who still have stocks have openly hoarded the staple, refusing to sell their reserves in a market where prices continue to rise.

Official Thai News Agency, quoting Benjamas Kotenongbua a Bank of Thailand official "deeply acquainted with the rice trade" reported that increasing rice prices in the local market have prompted numerous farmers and middlemen to slow, stall or simply stop selling paddy rice to millers, a move which eventually affects exporters.

Ms Benjamas said a total of 200,000 tonnes of rice is missing from warehouses nationwide. Damages were estimated at approximately 3.2 billion baht, about US$101.1 million.

The government has 2.1 million tonnes of rice in stock to ensure supplies to the local market. This is less than half of the stockpile held last year, which was about 4.4 million tonnes.

The government-sponsored mortgage programme for the 2007-2008 rice season attracted a mere 240,000 tonnes of rice for exporter stocks, compared to earlier estimates of 8 million tonnes, said Ms Benjamas, a senior economist at the central bank's northeastern office in Khon Kaen.

The major reason for the sharp drop of rice participation in the programme was soaring rice prices, which have persuaded farmers and middlemen to hold their rice.

This has affected exporters, according to Ms Benjamas.

In the first three months of this year, exports totaled 3.26 million tonnes, up 166.2 per cent from the 1.96 million tonnes shipped in the corresponding period in 2007.

The target rice export for the whole year was originally set at 8.75-9 million tonnes.

Deputy Prime Minister and Commerce Minister Mingkwan Saengsuwan said last week that Thai jasmine rice - khao hom mali - is currently priced around 34,600-36,000 baht per tonne (US$1,091-1,135), with 5 per cent white rice at 26,400-26,700 baht per tonne (US$832-842), and paddy at 17,000-18,000 baht per tonne (US$536-567).