Govt To Unload Rice Stockpile

[churchill]

The government is set to sell 2 billion tonnes of milled rice from its stockpiles to 13-15 winning exporters at an average of 15,000 baht per tonne.

According to Commerce Minister Porntiva Nakasai, results of the rice sales would be submitted soon to the Cabinet for acknowledgement to prevent a repeat of the dispute that happened with the proposed auction sale of mortgaged corn.

The commerce minister was reportedly locked in a clash with Prime Minister Abhisit Vejjajiva at Wednesday's cabinet meeting, after the premier put the brakes on the ministry's proposal to auction 449,000 tonnes of field corn from the mortgage stock worth more than 2 billion baht for fear of losses.

http://www.bangkokpost.com/breakingnews/14...-rice-stockpile

-- Bangkok Post 15/05/09

[churchill]

a short sited view IMO .

[sanook2me]

a short sited view IMO .

IMO why don't you go and post in the news forum!

[Tywais]

IMO why don't you go and post in the news forum!

Simple, he can't - only mods/admin can. Will move this one now.

[DaleBlue]

Mrs Porntiva said the selling prices were regarded as satisfactory, despite being relatively lower than current market prices.

Current market prices stand at about 16,500 baht per tonne, while the government's pledging prices including rice processing and related warehousing costs are about 24,000 to 28,000 baht per tonne.

That means the government is prone to losses of up to 20 billion baht from this rice sale, according to an industry source.

I wonder how many Poseidon can "Mrs Porntiva" build with 20 billion baht.

Everyone told Mark that Porntiva & Kosit are bad news for Dems. But he cannot do anything about it as this 2 names came from PAD quota.

[catmac]

Mrs Porntiva said the selling prices were regarded as satisfactory, despite being relatively lower than current market prices.

Current market prices stand at about 16,500 baht per tonne, while the government's pledging prices including rice processing and related warehousing costs are about 24,000 to 28,000 baht per tonne.

That means the government is prone to losses of up to 20 billion baht from this rice sale, according to an industry source.

I wonder how many Poseidon can "Mrs Porntiva" build with 20 billion baht.

Everyone told Mark that Porntiva & Kosit are bad news for Dems. But he cannot do anything about it as this 2 names came from PAD quota.

How is it, that whenever Governments interfere with the free market it always ends up with the taxpayer being taken for a ride? I seem to remember rice prices jumping through the roof a year or two ago, wouldn't that have been the time to get rid of that stockpile? And who are the lucky 13-15 exporters who are going to make a killing out of this fiasco? And how much are they going to reward our "Mrs Porntiva" for them being amongst the chosen few?

I thought that corruption, etc., had disappeared with Mr. T's demise and that we were now in the promised land of Little (clean-as-a-whistle) Mark. But of course, he's not really in charge is he? Just a pretty face to cover up the same old rot beneath the surface!

[Krungthepian]

The government is set to sell 2 billion tonnes of milled rice from its stockpiles to 13-15 winning exporters at an average of 15,000 baht per tonne.

According to Commerce Minister Porntiva Nakasai, results of the rice sales would be submitted soon to the Cabinet for acknowledgement to prevent a repeat of the dispute that happened with the proposed auction sale of mortgaged corn.

The commerce minister was reportedly locked in a clash with Prime Minister Abhisit Vejjajiva at Wednesday's cabinet meeting, after the premier put the brakes on the ministry's proposal to auction 449,000 tonnes of field corn from the mortgage stock worth more than 2 billion baht for fear of losses.

http://www.bangkokpost.com/breakingnews/14...-rice-stockpile

-- Bangkok Post 15/05/09

Can't see how they possibly have 2 billion tonnes of milled rice. Figure should be 2 million, I suspect.

In regards to the sale, the Democrats do have to tackle the inflated prices offered to farmers by their rivals (now Pheu or Peua Thai, depending on what paper you read).. they just need to do it cleverly for political reasons.

[churchill]

If Cambodia's Royal Oxen are correct - prices for rice could be soon on the rise .

http://thelede.blogs.nytimes.com/2009/05/1...amp;twt=thelede

Cambodia’s Royal Oxen Forecast Poor Rice Crop

[TPI]

If Cambodia's Royal Oxen are correct - prices for rice could be soon on the rise .

http://thelede.blogs.nytimes.com/2009/05/1...amp;twt=thelede

Cambodia's Royal Oxen Forecast Poor Rice Crop

And only a fool would doubt the "Royal Cambodian Oxen"!

[slapout]

It will be interesting to see how much of the rice and corn which is suppose to be in storage will not be accounted for. The storage/stockpile scams of the past come to mind. The warehouse may have a leak or natures (2 and 4 legged) rats got into the stored grain and ate a substantial portion of it. This story too will disappear from public view.

[astral]

Reminiscent to Gordon Brown selling off the UK's gold reserves in the good days..................

Look what is happening to the UK economy now.

[DaleBlue]

If there is a profit, the Ministers pocket it.

If there is a loss, the tax payers foot it.

Simple as that. Why do you think MPs aution for the Minister's post?

[churchill]

Thailand to sell rice stocks, but Indian ban supports

* Thailand to start selling from its rice stocks in July

* But India's continued export ban to support prices

By Apornrath Phoonphongphiphat

BANGKOK, July 13 (Reuters) - Thailand, the world's biggest rice exporter, plans to start selling rice from its huge stockpiles this month, but India said on Monday its export ban would remain in force, which will provide support for prices.

A senior trader at a rice convention in Bangkok said benchmark Thai rice could go as high as $800 per tonne later this year if the Indian ban remained in force. [iD:nBKK301026]

Thailand is estimated to have a stockpile of about 6 million tonnes of milled rice, the highest ever, and the government needs to bring that down because storage costs are high.

Thai Deputy Prime Minister Korbsak Sabhavasu said the government would open tenders to sell rice from its stocks this month, selling grain gradually instead of releasing big amounts as it used to do in the past, which depressed market prices.

"We could open a tender to sell from each warehouse," Korbsak said. "The rice we release from stocks should be for export only as we don't want to hammer domestic prices down with our stock sales."

Prime Minister Abhisit Vejjajiva delayed the sale of 2 million tonnes from stocks in May after a disagreement between ministers about selling prices. He then ordered officials to work out a plan to bring the stocks down. Continued...

-- Reuters 13/07/09http://in.reuters.com/article/domesticNews/idINBKK49513320090713

[churchill]

Thailand's misguided rice policy

When global rice prices suddenly boomed last year, everyone assumed that farmers in Thailand must have made a fortune.

However, according to economist Amar Siamwalla, some did but only the small minority that has access to irrigation, which allows them to grow more than one crop a year.

"The price spike was an artificial thing, it's a matter of luck who gets it," he says.

"People who grew rice in the dry season, in the central plains made money but in the north-east they made decent money, but not spectacular money."

Last year's experience brought home some hard truths to Thailand

continued at http://news.bbc.co.uk/2/hi/business/8130187.stm

-- BBC 14/07/09

[Samuian]

............edited...

I wonder how many Poseidon can "Mrs Porntiva" build with 20 billion baht.

Everyone told Mark that Porntiva & Kosit are bad news for Dems. But he cannot do anything about it as this 2 names came from PAD quota.

How is it, that whenever Governments interfere with the free market it always ends up with the taxpayer being taken for a ride? I seem to remember rice prices jumping through the roof a year or two ago, wouldn't that have been the time to get rid of that stockpile? And who are the lucky 13-15 exporters who are going to make a killing out of this fiasco? And how much are they going to reward our "Mrs Porntiva" for them being amongst the chosen few?

I thought that corruption, etc., had disappeared with Mr. T's demise and that we were now in the promised land of Little (clean-as-a-whistle) Mark. But of course, he's not really in charge is he? Just a pretty face to cover up the same old rot beneath the surface!

Well done business!

As this is still a scheme from the infamous Thaksin Era - his government has risen the prices in the pledging scheme to new heights!

And in the meantime the stockpile has risen so that not only the Thai-rice -export market is endangered, because of the paddy pledging scheme inferior qualities are even smuggled in, farmers do not care anymore much about top quality they get highest prices anyway - no but some Exporters will make a nice profit!

"Money for nothing and the chicks for free!"

Well and then tell me anyone how the heck is "clean Mark" supposed to clean all this out and sweep the floor of a nation where even the people think that a corrupt government is alright...?

Anyone with the solution, anyone with the secret formula?

get real guys!

Edited July 14, 2009 by Samuian

[chuenjit]

Rice options aim to end distortions

An option programme will be used to manage rice prices starting with the 2009-10 crop season, as the government attempts to wean farmers and processors off costly state price supports.

Reference or insurance prices will be based on farmers' production and transport costs as well as a profit margin. Prices would be based on types of rice from glutinous to Thai Hom Mali, paddy and second-crop rice.

The Agriculture Ministry is expected to propose prices within two weeks to the National Rice Policy Committee.

"Higher-than-market prices in the conventional rice pledging programme have caused the government to lose about 50 billion baht over the last eight years,'' Deputy Prime Minister Korbsak Sabhavasu said.

"We hope the new programme would reduce pledges, cut state stockpiles and help support market prices by limiting supply distortions.''

Under the new programme, the government would announce reference prices for farm products every 15 days.

"In case the prices fall below the market prices and traders are reluctant to buy products from farmers, the government may opt to buy the products and export them and/or apply simultaneously the mortgage programme offering lower-than-market prices to absorb supply into government stocks,'' he said.

Suwanna Tulyawasinphong of the Thailand Development Research Institute (TDRI) said that in principle, price-risk insurance would alleviate the losses of farmers if prices slumped.

"By this means, rice would no longer be a political product and the vicious circle of manipulation by politicians would be broken,'' said Ms Suwanna. "There would be only farmers and insurance registrars.''

Chookiat Ophaswongse, president of the Thai Rice Exporters Association, agreed the programme would allow rice to circulate in the market, not in the hands of the government.

High pledging prices draw huge supplies into state stocks, distorting the market. When the government attempts to sell the rice, it often loses money

http://www.bangkokpost.com/breakingnews/14...end-distortions

-- Bangkok Post 17/07/09

[chuenjit]

New form of rice price intervention approved

Writer: BangkokPost.com Published: 21/07/2009 at 06:27 PM The cabinet on Tuesday approved the National Rice Committee's proposal to replace the current paddy mortgage scheme with a price guarantee programme, said deputy government spokesman Vachara Kannikar.

To launch the new programme, the Agriculture and Cooperatives Ministry has been assigned to fix a suitable paddy price based on capital cost and a suitable return for farmers and to quickly complete registration of farmers joining the rice price guarantee programme.

The Bank for Agriculture and Agricultural Cooperatives will be responsible for conducting public relations work to ensure farmers that they will benefit more from the new programme, said the spokesman.

google_protectAndRun("render_ads.js::google_render_ad", google_handleError, google_render_ad);

-- Bangkok Post 21/07/09http://www.bangkokpost.com/breakingnews/149718/new-form-of-rice-price-intervention-approved

[churchill]

Government plans major milled rice sale from surplus

Writer: POST REPORTERS

Published: 25/07/2009 at 12:00 AM

Newspaper section: BusinessThe government will sell 500,000 tonnes of milled rice for export only as it attempts to whittle down its record-high stockpile of 6 million tonnes, according to Commerce Minister Porntiva Nakasai. The rice to be sold would include 70,000 tonnes of Thai Hom Mali fragrant rice, and 430,000 tonnes of white rice of different types, the minister said yesterday after chairing a meeting of a subcommittee handling state rice sales.

Under an earlier plan, the government was scheduled to call bids from exporters yesterday. But a weeks delay has resulted after the cabinet said the ministry had to sell rice on a warehouse basis.

Each warehouse carries different types of rice, making it difficult for buyers to make decisions, as certain buyers want to buy only certain types of rice.

''We need to consult the premier first on how to address this issue before the tender is opened,'' Mrs Porntiva said.

She said the government also planned to release about 600,000 tonnes of paddy and more white rice in future periods, but insisted the bids would be for no more than 500,000 tonnes at a time.

The government is anxious to sell its rice stocks because storage costs have become very high. It acquired the rice by offering prices above prevailing market rates to farmers.

continued http://www.bangkokpost.com/business/market...le-from-surplus