Business As Usual For The Govt As Thai Rice Loses Business

[loong]

We had to stop using Jasmine rice in our restaurant because the cost trippled.

Although I agree that the price is too high, I think that you must be exagerating to claim that the price has tripled, maybe you need to change suppliers.

A couple of years back the Jasmine rice that we use did roughly double over a relatively short period, but since then has been fluctuating quite close to around 200 Bt per 5b Kilo bag.

[allan michaud]

I am becoming increasingly convinced that this running of the economy into the ground is being done to benefit one person in particular. Big T made a shed load of money in 97 from some very "fortunate" foreign exchange deals. With so much of his wealth seemingly not being held in Thai Baht anymore he would do quite nicely out of any collapse here. He's a megalomaniac, nothing is beyond this man. Meanwhile his proxies seem only too happy to keep making economically suicidal decisions.

Be afraid, very afraid.

[allan michaud]

But Thailand does seem to be the 'hub' of hot women who hold senior positions. What with Yingluck and now Ms Kobsuk Iamsuri, wheeew! At least the latter is also displaying some kind of intelligence by highlighting the forthcoming financial hurricane about to engulf the farmers.

A visit to the optometrist is over due.

Ms Kobsuk is hotter than Yingluck for sure and clearly has a higher IQ.

More importantly it really helps me to believe my 8 year old sons future is not completely bleak as Thailand does actually have some intelligent members of the species, even if none have managed to reach positions of power yet. I live in hope that the cream will rise to the top (of society) rather than having scum forming on it.

[trainman34014]

But Thailand does seem to be the 'hub' of hot women who hold senior positions. What with Yingluck and now Ms Kobsuk Iamsuri, wheeew! At least the latter is also displaying some kind of intelligence by highlighting the forthcoming financial hurricane about to engulf the farmers.

Looks like we are in danger of finding a female politician with at least half a brain. There again, I would have expected a junior High School kid of about 12 to have noticed something is this drastically wrong with Thailand's Rice 'Scheme'. Will be interesting to see how she performs once she gets moved for being too smart !

[Crushdepth]

I'm just shocked that anyone could be so ignorant as to think such a policy could work. Did any of the governments 'economic dream team' actually attend high school?

[waza]

ok so i guess now Thais will be paying the highest prices in the world for rice, onions, tapioca ect ect ect. If not in the market then through the tax system, Way to go PTP.

Edited April 26, 2012 by waza

[hyperdimension]

I'm just shocked that anyone could be so ignorant as to think such a policy could work. Did any of the governments 'economic dream team' actually attend high school?

I think they simply carry out their master's orders, who has a Masters degree in Criminal Justice.

[Thai at Heart]

Whoever said it was policy to protect the export firms?

[heiwa]

Appears the Vietnamese will wipe the Thai rice farmers out especially with the government polices weakening their survival skills. There is no stopping the Vietnamese in farming or war. Coffee growers have learnt this worldwide. Thailand will have to find some other crop to grow. We are witnessing an end of an era for Thai rice. Those esan girls will have to find more farang husbands

Edited April 26, 2012 by heiwa

[Colin Yai]

Pua Thai knows best. Thai farmers will be rich by this time next year.

Thaksin said so.

This is going to be an interesting year ahead.

Yeah Thaksin said so and like the late Chairman Mao his "thoughts" cannot be brought into question!!, how dare you have the sheer audacity to disagree what his holyness decrees , I demand an apology forthwith

[Colin Yai]

"Commerce Minister Boonsong Teriyapirbom, asked to comment on these highly negative reports, didn't show any sign of concern. He said the government won't change its policy to accept paddy from farmers at Bt15,000 per tonne.

Why, in the face of all this bad news from the front line, does he refuse to consider a review of the policy?

"Because it's the government's policy," he says.

How is he going to tackle the issue?

The minister repeated what the government's leaders have said from the outset: "We will sell our rice through government-to-government (G-to-G) deals."

How that can be called a "solution" is anybody's guess."

MPs the world over offer the same solutions when asked difficult questions: they reiterate and regurgitate. And these are supposed to be intelligent and responsible people, or so they would have us believe.

I think you blame the wrong person....he isn't in the position to change policy.

You said it, and we all know who makes the ultimate decisions don't we , you just could not make it up could you, what a bloody fiasco.

[heiwa]

Vietnam has beaten Thailand in the high-end market for hommali fragrant rice. As the USA found - Vietnam is invincible. We are looking at the economic collapse of Thailand and the ensuing criminal violence that goes with such collapse. The key rice policy should be to find more farang husbands for daughters of esan farmers. This is the only thing that can save Thailand.

[heiwa]

Government to Government deals 555 . Wasn't Vietnam meant to have the communist system and Thailand the capitalist system??? It appears there has been a swapping of economic systems. A rose would smell as sweet by any other name. No need to see a comedy at Cinemaplex that's for sure.

Edited April 26, 2012 by heiwa

[geriatrickid]

The simplistic response is to blame the government. It appears that some people are either so blinded by hate or are incredibly ignorant that they do not acknowledge what Vietnam and India are doing. It is called dumping. It is not the first time these countries have done this and India which is in the midst of a serious debt crisis needs to undertake drastic measures to get FX and to provide a market for its battered farmers. In case anyone forgot, India had suffered through several bad harvests caused by droughts and flooding and lost market share. The strategy is to "buy" back the lost market share. Vietnam has had a bumper harvest and is suffering through soaring inflation. Vietnam needs to dispose of its inventory as it does not have the extensive warehousing and logistics facilities that its competitors have. Simply put, if Vietnam doesn't get rid of the rice, it will go bad. As such it is better for Vietnam to get whatever it can now than to watch the rice deteriorate due to mold, fungus and vermin.

The failure on the government and the rice exporters is that they did not plan ahead to prepare for this scenario which was evident months ago. If one wants to play the blame game, it goes far beyond the current government to the mindset of the planners (or lack of planning thereof). The people running the rice exports and that have responsibility for following and planning are the same people that were there 2 years ago.and even 5 years ago. It's all about a failure to anticipate and to plan. Nothing new in that regard as that seems to be a characteristic of Thailand. Sorry, but this "problem" runs alot deeper than some lacklustre minister.I doubt the response from the government would have been any different had there been a Democrat in charge, or for that matter, a sack of papaya.

[heiwa]

The simplistic response is to blame the government. It appears that some people are either so blinded by hate or are incredibly ignorant that they do not acknowledge what Vietnam and India are doing. It is called dumping. It is not the first time these countries have done this and India which is in the midst of a serious debt crisis needs to undertake drastic measures to get FX and to provide a market for its battered farmers. In case anyone forgot, India had suffered through several bad harvests caused by droughts and flooding and lost market share. The strategy is to "buy" back the lost market share. Vietnam has had a bumper harvest and is suffering through soaring inflation. Vietnam needs to dispose of its inventory as it does not have the extensive warehousing and logistics facilities that its competitors have. Simply put, if Vietnam doesn't get rid of the rice, it will go bad. As such it is better for Vietnam to get whatever it can now than to watch the rice deteriorate due to mold, fungus and vermin.

The failure on the government and the rice exporters is that they did not plan ahead to prepare for this scenario which was evident months ago. If one wants to play the blame game, it goes far beyond the current government to the mindset of the planners (or lack of planning thereof). The people running the rice exports and that have responsibility for following and planning are the same people that were there 2 years ago.and even 5 years ago. It's all about a failure to anticipate and to plan. Nothing new in that regard as that seems to be a characteristic of Thailand. Sorry, but this "problem" runs alot deeper than some lacklustre minister.I doubt the response from the government would have been any different had there been a Democrat in charge, or for that matter, a sack of papaya.

So what are you trying to say - Job well done? It sounds like the old five year communist plans of the Soviet Union. Edited April 26, 2012 by heiwa

[Skywalker69]

"Commerce Minister Boonsong Teriyapirbom, asked to comment on these highly negative reports, didn't show any sign of concern. He said the government won't change its policy to accept paddy from farmers at Bt15,000 per tonne.

Why, in the face of all this bad news from the front line, does he refuse to consider a review of the policy?

"Because it's the government's policy," he says.

How is he going to tackle the issue?

The minister repeated what the government's leaders have said from the outset: "We will sell our rice through government-to-government (G-to-G) deals."

How that can be called a "solution" is anybody's guess."

MPs the world over offer the same solutions when asked difficult questions: they reiterate and regurgitate. And these are supposed to be intelligent and responsible people, or so they would have us believe.

He has to follow orders from the "big boss" in Dubai, or be put out in the cold.

[h90]

I'm just shocked that anyone could be so ignorant as to think such a policy could work. Did any of the governments 'economic dream team' actually attend high school?

I think they simply carry out their master's orders, who has a Masters degree in Criminal Justice.

I don't know all the details of the policy, but I am sure it will work for someone. As you say we have that guy who is educated in Criminal things.....

If 1 Million Farmer loose 5000 Baht each and one guy in Dubai wins 50 Million than the policy did work very well.

[hyperdimension]

I doubt the response from the government would have been any different had there been a Democrat in charge

If the Democrat party was in government there wouldn't be this rice-pledging policy, and the rice would be offered on the market at closer to real market rates instead of artificially high rates, hence there would be more sales.

[wintermute]

Wasn't some Thai politician called out for running a border operation shipping in rice from Cambodia or Myanmar to sell at the jacked up prices in Thailand? It seems like they will keep this little scheme running until the fat cats are done filling their pockets off the government dole. The private businesses will bear the brunt over this little racket because they can't unload their product to any willing consumers.

[lovelomsak]

Gee is it ever nice to read all this valuable information all TV posters have. I was wondering if anyone can see an opportunity opening here for Thailand in asian trade circles? India and Vietnam cannot afford to keep selling at such a low price right. Also without storage India and Vietnam may find themselves in product shortages, Especially if Thai rice exporters purchase their rice. So Thailand is selling enough to keep in the game and if they like they can purchase the majority that India and Vietnam have to sell, at very good value. When the time comes that India and Vietnam cannot meet their quotas to other nations where will they buy from? Thailand of course and at Thai prices. To sweeten the deal Thailand will quarantee trade deals with the nations to purchase their exports with the money they get from rice sales.Gee all of a sudden Thailand is a major trader in asian trade circles, when you also consider their strong stable currency.The game is never over till the fat lady sings.

[h90]

I doubt the response from the government would have been any different had there been a Democrat in charge

If the Democrat party was in government there wouldn't be this rice-pledging policy, and the rice would be offered on the market at closer to real market rates instead of artificially high rates, hence there would be more sales.

And that wouldn't be too smart as well.

Problem 1) Middleman and the mills get a far too big share of everything

Problem 2) Organic rice sells very good but not much cultivated

Problem 3) There are great systems of integrated cultivation of different things, specially Organic....Rice, Fish, Ducks and with the leftovers chicken or pig. That is not supported or even blocked (bird flue scam).

That all isn't the solution but it helps

[spiritrace]

Loong, cost of goods depends on where you are to get the goods..... Our little Thai restaurant is in Wyoming USA. Just to get spices, Asian noodles, curries and all that is a 500 mile drive to Denver Colorado. So every few months we would drive to Denver to buy our needed supplies. It is cheaper for us to pay the high price for fuel than pay shipping. We are off the main interstate road system and suppliers will not deviate from the main roads so shipping is often more expensive than the product we order.

The suppliers are the large Asian grocery stores in Denver, 88, Pacific Ocean etc. Jasmine rice is only available in small bags locally and the Asian stores have the 50 pound bags. We would buy 3-4 50 pound bags. If we got the small bags the price would be much greater. Most of our supplies are bought in bulk for a lower price.

Just the stat of Wyoming is half the size of Thailand with a population of only 500,000. Hard to believe we are so remote considering that we are in the middle of the US.

[rubl]

So, how much has been spent in the 'rice price pledging scheme' since October 7th, 2011, could we have a breakdown in where money was spent and to whome, and in possible an indication of the slowly rising 'rice mountain' as pledging continues and sales lag. Furthermore can we have an economical expert tell us again how these higher prices have no effect on inflation and/or the common people in Thailand?

[loong]

Loong, cost of goods depends on where you are to get the goods..... Our little Thai restaurant is in Wyoming USA. Just to get spices, Asian noodles, curries and all that is a 500 mile drive to Denver Colorado. So every few months we would drive to Denver to buy our needed supplies. It is cheaper for us to pay the high price for fuel than pay shipping. We are off the main interstate road system and suppliers will not deviate from the main roads so shipping is often more expensive than the product we order.

The suppliers are the large Asian grocery stores in Denver, 88, Pacific Ocean etc. Jasmine rice is only available in small bags locally and the Asian stores have the 50 pound bags. We would buy 3-4 50 pound bags. If we got the small bags the price would be much greater. Most of our supplies are bought in bulk for a lower price.

Just the stat of Wyoming is half the size of Thailand with a population of only 500,000. Hard to believe we are so remote considering that we are in the middle of the US.

You really should have mentioned that you are in the USA, not Thailand.

So the price of Jasmine rice in the USA has tripled? That really doesn't make sense if the Global market price is falling.

From the original article....

.....while Vietnam has beaten Thailand in the high-end market for hommali fragrant rice.....

Unless you are specifically buying Jasmine rice from Thailand, there should really be no increase in price at all. Even Thai rice should not have tripled. Sounds like the importers/suppliers have jacked up the price artificially.

[farang000999]

he is obv clueless.

[heiwa]

Cheap Vietnamese rice. This should be made available to those living in poverty in Thailand where many are finding it hard to pay their bills. Market economics. Perhaps the politicians are already importing this cheap Vietnamese rice?

[Thaddeus]

The simplistic response is to blame the government.

Haven't you learned yet that most of the time the most obvious answer to any question is frequently the right one.

[Buchholz]

Cheap Vietnamese rice. This should be made available to those living in poverty in Thailand where many are finding it hard to pay their bills. Market economics. Perhaps the politicians are already importing this cheap Vietnamese rice?

not sure about importing rice from Vietnam at lower prices, but clever entrepreneurs are repeatedly smuggling cheap Cambodian rice into Thailand in order to claim it's Thai rice and subsequently sell it at the inflated Thai price:

October 6, 2011

Cambodian Rice Smuggled Across Border Canal

An unknown volume of rice has been allegedly smuggled from Cambodia to Thailand's border district of Aranyaprathet to enjoy the government's rice price-pledging scheme.

MP Chuvit Kamonvisit produced video clips showing the Cambodian rice being unloaded from trucks and smuggled across Klong Namsai canal by Cambodian workers into Aranyaprathet.

The Cambodian rice, smuggled at varied spots along the border canal, was believed to be sold for 15,000 baht a ton under the Thai government's much-heralded price-pledging plan, effective on Friday.

http://news.voicetv.co.th/in-english/19980.html

March 29, 2012

Officers Seize 30 Tons of Smuggled Rice

Customs officials and border patrol police in Sra Kaeo Province have stopped trucks that were smuggling in rice from a neighboring country to participate in the government's rice pledging scheme.

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1053924

[geriatrickid]

The simplistic response is to blame the government.

Haven't you learned yet that most of the time the most obvious answer to any question is frequently the right one.

So you blame the government of Thailand for the dumping of rice on the market?

The most obvious answer is that of dumping. Do you not read the business news from time to time?

Vietnam has quite a history when it comes to dumping goods. Remember shoes? The EU only recently lifted the punishing tariffs. How about the latest litigation with wind generated power towers or plastic bags or farmed fish products? India has dumped its products in the market before and it will do so again.

Again, why aren't some of you international economic experts aware of the issues of agricultural product dumping?

How come no one acknowledges that India was not even exporting rice until the past year? Are you aware that there was an export ban for 4 years because of poor rice yields in India?

The last rice harvests were so big that India has to prop up its rice farmers because local prices have fallen by 25%.

India has to get the surplus out of the country fast or else its rice growing industry will suffer serious damage. Of course you don;t take this into consideration do you? It is easier to blame the Thai government rather than to make an effort to know what is happening.

Edited April 27, 2012 by geriatrickid

[Thaddeus]

not sure about importing rice from Vietnam at lower prices, but clever entrepreneurs are repeatedly smuggling cheap Cambodian rice into Thailand in order to claim it's Thai rice and subsequently sell it at the inflated Thai price:

Cambodia is just a stones throw from me, close enough to feel the ground shake in temple disputes and there is a small market in no-mans-land where the Cambodians sell their wares to the Thais (it is one way traffic) for a few weeks you could not park your car closer than a 30 minute walk to the place, why was it so busy? ..... rice.

They started limiting the amount an individual could buy to 5 kilos per person, so there were hundreds of pick-ups with Dad, Mum, brothers, sisters, nieces and nephews all buying one bag each.

Two weeks ago they stopped the Cambodians selling rice.