Payment Terms

[~G~]

Does anyone know where can I find information about the common payment terms to farmers in buying large quantities of agricultural produce? I mostly refer to rice, fruits and vegetables.

Any information appreciated.

[sajal]

we have been in the agricultural business in thailand for like 4 years.

in thailand, trust is very easy to gain.

the payment is mostly done by bank transfer where you transfer the amount to the fatmers/suppliers bank account.

what is the quantity you are talking about..? truck loads or smaller.

for small quantities like upto 500 Kg, normaly the payment is cash.

for larger quantities it may be advance, cash or on credit depending on your negotiation.

first few deliveries should be inspected physically.

payment by cheque is not wellcomed as usually these sellers are not registered companies.

the most widely used payment term is where the buyer wire transferes the payment on the same day as the dispatch of the goods after receiving the truck details.

it is a very bad inea for a farang to negotiate directly(with or without an intepreter) with the farmer as they would always like to overcharge the farang and they wouldnt trust a farang also.

if giving an advance payment, a signed photocopy of the farmer with the deal mentioned in his handwriting would be better for your safety.

PS: there is no vat on agricultural products and not much restrictions in this trade.

hope it helps.

[~G~]

we have been in the agricultural business in  thailand for like 4 years.

in thailand, trust is very easy to gain.

the payment is mostly done by bank transfer where you transfer the amount to the fatmers/suppliers bank account.

what is the quantity you are talking about..? truck loads or smaller.

for small quantities like upto 500 Kg, normaly the payment is cash.

for larger quantities it may be advance, cash or on credit depending on your negotiation.

first few deliveries should be inspected physically.

payment by cheque is not wellcomed as usually these sellers are not registered companies.

the most widely used payment term is where the buyer wire transferes the payment on the same day as the dispatch of the goods after receiving the truck details.

it is a very bad inea for a farang to negotiate directly(with or without an intepreter) with the farmer as they would always like to overcharge the farang and they wouldnt trust a farang also.

if giving an advance payment, a signed photocopy of the farmer with the deal mentioned in his handwriting would be better for your safety.

PS: there is no vat on agricultural products and not much restrictions in this trade.

hope it helps.

<{POST_SNAPBACK}>

Thanks for the helpful information. I am talking about big quantities, certainly above 500 kg, and in some cases over 15 tonnes for each shipment. It will mainly go for export. There are restrictions about exporting rice. I am still trying to get information about this issue.

[sajal]

Thanks for the helpful information. I am talking about big quantities, certainly above 500 kg, and in some cases over 15 tonnes for each shipment. It will mainly go for export. There are restrictions about exporting rice. I am still trying to get information about this issue.

<{POST_SNAPBACK}>

yes in thailand some comodities like sugar(im not sure abt rice) are controled by the government to prevent inflation in the local markets. if not controlled then the full production would go for export leaving nothing for local consumption/increasing the local price by many times.

you need to get more info out of department of agriculture..

click here to download the export procedure for rice...

your company needs to get a quota(i dunno the process).

another option would be to use the service of a company who has, i.e. you sell the rice to the company having the liscense and ask them to do the export for you, the payment balance, etc can be settled.

the following links may be of some help.

Department of export promotion

department of agriculture

[Bizz]

Thanks for the helpful information. I am talking about big quantities, certainly above 500 kg, and in some cases over 15 tonnes for each shipment. It will mainly go for export. There are restrictions about exporting rice. I am still trying to get information about this issue.

<{POST_SNAPBACK}>

yes in thailand some comodities like sugar(im not sure abt rice) are controled by the government to prevent inflation in the local markets. if not controlled then the full production would go for export leaving nothing for local consumption/increasing the local price by many times.

you need to get more info out of department of agriculture..

click here to download the export procedure for rice...

your company needs to get a quota(i dunno the process).

another option would be to use the service of a company who has, i.e. you sell the rice to the company having the liscense and ask them to do the export for you, the payment balance, etc can be settled.

the following links may be of some help.

Department of export promotion

department of agriculture

<{POST_SNAPBACK}>

followed link and guess what i came across.

http://www.thaitrade.com/productsofthemonth.shtml

Product of the month.

[~G~]

followed link and guess what i came across.

http://www.thaitrade.com/productsofthemonth.shtml

Product of the month.

<{POST_SNAPBACK}>

It should be considered the product of the century, not only of the month!

[sajal]

It should be considered the product of the century, not only of the month! 

<{POST_SNAPBACK}>

lolz

the product of the month has been same for all the months in the past year. i dunno abt b4 last year...

advice: goto google advance search, key in your product, choose file type .doc , type the domain depthai.com, youll get vital statistics and trade leads. good luck (y)...