Thai Rice Exports: 'Sector May Be Heading For Disaster'

[pattayaorganic]

A Good article if you want to learn how the government should be spending its money instead of throwing it at the pooyais/millers. By the way, in Japan, millers have no power because the system in Japan has coin operated milling machines distributed throughout the rural regions were farmers can mill their crop (and hence have a marketable product in hand) with a few coins.

Wouldn't it be great to start a charity that would buy these coin operated machines and place them throughout the villages were rice is farmed? This would be one of the most empowering things anybody could do to achieve true revolution for Thai Society and improve the lot of farmers.

Farmers urged to focus on white rice

ACHARA PONGVUTITHAM

THE NATION August 1, 2011 12:00 am

Thai farmers should concentrate on white rice and continue growing unique varieties of fragrant rice only for the premium market to cope with tougher competition from the emergence of India and Indonesia as key suppliers, says a rice expert.

To strengthen Thailand's competitiveness in the short run, the country should focus on doubling yield from 460 kilograms per rai (2,875kg per hectare) to 800-900kg per rai. The next step would be to use high-quality seeds that can triple yield to a minimum of 1,000kg per rai from 460kg, said Anek Silapapun, executive vice president of crop-integration business for CP Group.

"High-quality rice seeds are not a barrier, as Thailand has moved forward on rice-seed research and development with varieties of white-rice strains," Anek said.

Despite the prestige of the Kingdom's Hom Mali variety of jasmine rice, it is difficult to increase its yield because of limitations in terms of planting area and the fact that it grows in dry areas of the Northeast. The government should encourage farmers in that area to concentrate more on applying for Geographical Indication certification to access more premium customers.

However, white rice grows nationwide but mainly in the Central region, particularly where irrigation systems can support yields averaging 600-700kg per rai. With high-quality rice seed and a reliable source of water, farmers can reach yield of 1,000-1,100kg per rai in the Central region.

"If we can achieve such high yields, Thailand can significantly reduce rice plantation areas from the current 68 million rai," freeing that land up for other uses, Anek said. Farmers would also benefit from competitive production costs. He said the CP 304 hybrid yielded a maximum of 1,400-1,500kg per rai when grown in the Central region under an irrigation system.

Thai farmers are facing tougher export competition not only from neighbouring countries such as Vietnam, Laos, Cambodia and Burma but also from India and Indonesia, which have fertile soil and good climatic conditions. Both India and Indonesia have great potential as the world's new rice sources.

According to US Department of Agriculture statistics, the world's rice production will grow by 1.36 per cent to 456.32 million tonnes. Of the total, India's production will increase by 2.65 per cent to 97 million tonnes, Indonesia by 1.9 per cent to 37.6 million tonnes, Burma by 2.33 per cent to 11 million tonnes, Laos by 11.1 per cent to 2 million tonnes. However, Vietnam, the world's second-largest rice exporter after Thailand, expects production to drop by 1.45 per cent to 25.43 million tonnes while Cambodia, an emerging rice exporter, faces zero growth and United States will drop by 20.56 per cent. World rice production is forecast to increase by an average of 1-2 per cent per year.

Surrounded by rice-consumer countries, India has a great opportunity to transport its rice to Bangladesh and elsewhere in South Asia. People in these countries consume harder qualities such as parboiled rice, and India offers an attractive price of US$430 (Bt12,800) per tonne, compared with Thailand's $550.

Anek stressed that the government should invest heavily in irrigation systems and infrastructure development. Even if it costs Bt100 billion, the government needs to undertake this challenge. Moreover, the government should make sure that its investment goes into productive regions.

To achieve sustainable competitiveness and development, the government should join with the private sector in conducting research and development for hybrid seeds. Moreover, related facilities such as marketing, crop insurance and technology supports should be provided. These support measures should be aimed in particular at small farmers nationwide.

Currently, small and medium-sized farmers with plantation areas of less than 20 rai make up 62 per cent of all farmers unclear - might mean 62% of plantation area but generate only 28 per cent of the country's total production, while most production is by big-scale farms.

Anek added that Thailand should reduce waste in the rice fields, which mainly takes the form of overuse of fertiliser.

Anek stressed that Thailand should not worry about expansion of rice-cultivation areas in Africa, as most of that continent is concerned with self-sufficiency, not export. Many parts of Africa face drought for much of the year, while rice needs sustained water supply. In addition, high production costs will obstruct rice plantation as producers need to develop many facilities such as logistic systems, infrastructure, rice mills, and manpower.

"Seventy per cent of the population in that region have incomes lower than $1 [per day] and they may not be able to afford the rice," he said.

Africa's annual rice production averages 13.2 million tonnes against demand of 19 million tonnes, the shortfall offset by imports. Of the total import volume of 5 million to 6 million tonnes per year, Thailand controls the lion's share of 4 million tonnes. Demand in Africa is increasing by an average of 6 per cent per year.

Thai rice has been classified into three main types: white rice, glutinous rice and Hom Mali rice (fragrant jasmine rice). However, the limitations on Hom Mali production in terms of plantation area and low yield has affected the country's overall rice production.

[Thai at Heart]

A Good article if you want to learn how the government should be spending its money instead of throwing it at the pooyais/millers. By the way, in Japan, millers have no power because the system in Japan has coin operated milling machines distributed throughout the rural regions were farmers can mill their crop (and hence have a marketable product in hand) with a few coins.

Wouldn't it be great to start a charity that would buy these coin operated machines and place them throughout the villages were rice is farmed? This would be one of the most empowering things anybody could do to achieve true revolution for Thai Society and improve the lot of farmers.

Farmers urged to focus on white rice

ACHARA PONGVUTITHAM

THE NATION August 1, 2011 12:00 am

Thai farmers should concentrate on white rice and continue growing unique varieties of fragrant rice only for the premium market to cope with tougher competition from the emergence of India and Indonesia as key suppliers, says a rice expert.

To strengthen Thailand's competitiveness in the short run, the country should focus on doubling yield from 460 kilograms per rai (2,875kg per hectare) to 800-900kg per rai. The next step would be to use high-quality seeds that can triple yield to a minimum of 1,000kg per rai from 460kg, said Anek Silapapun, executive vice president of crop-integration business for CP Group.

"High-quality rice seeds are not a barrier, as Thailand has moved forward on rice-seed research and development with varieties of white-rice strains," Anek said.

Despite the prestige of the Kingdom's Hom Mali variety of jasmine rice, it is difficult to increase its yield because of limitations in terms of planting area and the fact that it grows in dry areas of the Northeast. The government should encourage farmers in that area to concentrate more on applying for Geographical Indication certification to access more premium customers.

However, white rice grows nationwide but mainly in the Central region, particularly where irrigation systems can support yields averaging 600-700kg per rai. With high-quality rice seed and a reliable source of water, farmers can reach yield of 1,000-1,100kg per rai in the Central region.

"If we can achieve such high yields, Thailand can significantly reduce rice plantation areas from the current 68 million rai," freeing that land up for other uses, Anek said. Farmers would also benefit from competitive production costs. He said the CP 304 hybrid yielded a maximum of 1,400-1,500kg per rai when grown in the Central region under an irrigation system.

Thai farmers are facing tougher export competition not only from neighbouring countries such as Vietnam, Laos, Cambodia and Burma but also from India and Indonesia, which have fertile soil and good climatic conditions. Both India and Indonesia have great potential as the world's new rice sources.

According to US Department of Agriculture statistics, the world's rice production will grow by 1.36 per cent to 456.32 million tonnes. Of the total, India's production will increase by 2.65 per cent to 97 million tonnes, Indonesia by 1.9 per cent to 37.6 million tonnes, Burma by 2.33 per cent to 11 million tonnes, Laos by 11.1 per cent to 2 million tonnes. However, Vietnam, the world's second-largest rice exporter after Thailand, expects production to drop by 1.45 per cent to 25.43 million tonnes while Cambodia, an emerging rice exporter, faces zero growth and United States will drop by 20.56 per cent. World rice production is forecast to increase by an average of 1-2 per cent per year.

Surrounded by rice-consumer countries, India has a great opportunity to transport its rice to Bangladesh and elsewhere in South Asia. People in these countries consume harder qualities such as parboiled rice, and India offers an attractive price of US$430 (Bt12,800) per tonne, compared with Thailand's $550.

Anek stressed that the government should invest heavily in irrigation systems and infrastructure development. Even if it costs Bt100 billion, the government needs to undertake this challenge. Moreover, the government should make sure that its investment goes into productive regions.

To achieve sustainable competitiveness and development, the government should join with the private sector in conducting research and development for hybrid seeds. Moreover, related facilities such as marketing, crop insurance and technology supports should be provided. These support measures should be aimed in particular at small farmers nationwide.

Currently, small and medium-sized farmers with plantation areas of less than 20 rai make up 62 per cent of all farmers unclear - might mean 62% of plantation area but generate only 28 per cent of the country's total production, while most production is by big-scale farms.

Anek added that Thailand should reduce waste in the rice fields, which mainly takes the form of overuse of fertiliser.

Anek stressed that Thailand should not worry about expansion of rice-cultivation areas in Africa, as most of that continent is concerned with self-sufficiency, not export. Many parts of Africa face drought for much of the year, while rice needs sustained water supply. In addition, high production costs will obstruct rice plantation as producers need to develop many facilities such as logistic systems, infrastructure, rice mills, and manpower.

"Seventy per cent of the population in that region have incomes lower than $1 [per day] and they may not be able to afford the rice," he said.

Africa's annual rice production averages 13.2 million tonnes against demand of 19 million tonnes, the shortfall offset by imports. Of the total import volume of 5 million to 6 million tonnes per year, Thailand controls the lion's share of 4 million tonnes. Demand in Africa is increasing by an average of 6 per cent per year.

Thai rice has been classified into three main types: white rice, glutinous rice and Hom Mali rice (fragrant jasmine rice). However, the limitations on Hom Mali production in terms of plantation area and low yield has affected the country's overall rice production.

And shock horror, lets look where Hom Mali is principally produced,

Thailand is one of the premium quality Thai HOM MALI Rice producers, with the total area of plantation of 19 million rai. The major rice plantation is in the northeast of Thailand (Thung Kula Field). Surin, Buri Rum, Si Sa Ket, Nakhon Ratchasima, Ubon Ratchathani, and Roi Et are major producers of the region. The second largest production area is in the north of Thailand. Both regions are similar climatically and geographically and they are appropriate for growing Thai HOM MALI Rice.

So why haven't governments for the last god knows how many years been looking at how to produce more of it up there? The highest margin rice, is produced in the most impoverished part of the country. Of course, this has had absolutely nothing to do with say, rice cartels getting together over the years to possibly keep the prices to the farmers down, whilst exporting it for a handsome profit? And as to why, there hasn't been more money put into irrigation systems over there god only knows.

Good god no, lets not think that possibly isaan has been just a tad exploited and neglected?

The land over there, is pretty much marginal for anything except rice production.

Edited July 27, 2012 by Thai at Heart

[Valentine]

The rice subsidy could have been much better used to extend irrigation or ease fertilizer prices which are most likely too high considering that Monsanto (this company could turn out to be one of the most evil in the world considering they have their fingers in just about every stage of food production) & Thai business basically have a stranglehold (the sums of money & profits in this must be enormous). The use of organic farming could help lower costs not to mention aiding the health of the poor farmer who is exposed to hazardous chemicals.

[Moruya]

The *Commerce Minister* said this? Is he part of the "economic dream team" too

However, he said the exporters jumped to the conclusion without taking Thai rice farmers’ quality of life into consideration.

Boonsong explained that the government needed to take care of farmers in accordance with its urgent policy; therefore, the prices of agricultural products had to be set at high levels.

I know, I know, Thai rice is the best and people will pay anything to get it so we can dictate the price of this commodity...

It is interesting to me that none of the newspapers has actually done a very in depth explanation about how the rice pricing system works, we are just bombarded with 15,000 a ton, 500 USD at export, bla bla bla.

In a bit of reading over the last couple of days, it is the interaction between the various markets that is messing with the exports. Thailand has exported 3mn tonnes, but hom mali (the most expensive, makes up nearly 50% of the value, but 30% of the volume of all Thai exports in a normal season). So there is a huge discrepancy between the prices paid to farmers normally for Hom Mali in comparison with lower quality/grades of rice.

India has had a blockade on exporting low quality rice since 2007 until this year, but has always exported its higher quality rice basmati. So, this is I reckon as much politics as anything else. India was out of the low quality rice export business because it wanted to feed its people, and Thailand took a bet that it could force the prices of lower quality price up as well as hom mali. And then, whoops, India started exporting low quality rice as well, and the whole market has changed over night from where it was 18 months ago. If India hadn't entered the market and increaed supply, there would be a pretty good chance that prices for all traded rice would have firmed up, but alas no.

http://www.thairicee...or.th/price.htm

It would be wonderful if instead of talking in generic numbers for 15,000 a ton (500 USD), the breakdown of production and what is being bought was and exported by type was discussed because as you can see, the offered price for Hom mali as an example is 1000 USD per ton, (quite a nice margin I think we would all agree, but then digging deeper, it appears that the guaranteed price for hom mali is actually well above 15,000 a ton(maybe 20k per ton), but as far as I have read, represents about 30% of exports in a normal year. So the exporters will make good margins on the top stuff, but lose money on the lower quality stuff. The market is a lot more complex than a lose lose situation for all the market, everywhere. The hom mali exporters (mainly in Isaan) are getting paid a bit better, whilst the lower quality exporters/millers elsewhere are having a tough time of it. But reducing this to a "whole market is screwed" discussion doesn't appear to paint the whole picture. The newspapers are making no mention of what is in the mix of the 3mn tonnes of exported product, versus what is in the stockpile.

I can't find any specific stats anywhere to show the mix of the products exported so far, but from what I have read, the hom mali market is ok, it is the market for the lower value stuff that is the problem, because the supply offered to the market has increased with India now re-entering the export market.

http://www.worldbest...rtal/aboutus/33

Had to edit this, the spreadsheets from the websites won't layout properly on the page. If anyone else can bring some clarity to this crazy market, please do, because I can't help feeling that endless headlines describing baht prices on the average, when the exports are in dozens of grades in USD, isn't exactly showing the whole picture.

So the long and short of it is that Thailand is now the world's largest producer of rat food.

It is trying to secretly sell this to other governments at knockdown prices so that the Dems can't call them a bunch of chimps for appalling business acumen and bribing farmers at the expense of taxpayers.

[Skywalker69]

A few questions for the agriculture experts here.

How does the government store this 12 million tons of rice? In silos? Or is it bagged and stored In warehouses?

And how long can they store such amounts of rice before it spoils or the quality degrades to the point where they cannot sell it?

2 rudiments of wisdom.

All the silos will soon be full. A full vessel speaks words of truth.

The rice barges will all be empty. Empty vessels make the most noise.

And a mathematical paradox for free. Half full = half empty. Until you multiply both sides of the equation by 2.

Now you are an expert in PTP market dynamics

[TommoPhysicist]

It is trying to secretly sell this to other governments at knockdown prices so that the Dems can't call them a bunch of chimps for appalling business acumen and bribing farmers at the expense of taxpayers.

As far as I know, they bribe the middle-men, not the farmers.

Rice prices are so low at the farm it's not worth my while planting rice to sell.

[Skywalker69]

You are making excuses. Phua Thai didn't know that would happen. India sorted out a great deal and you degenerate it. Thailand has a crap policy you defend it against other countries. Wow.

But OK. Let's see how Phua Thai manage "one countries catastrophes are another's opportunity "

They should be able to shift the excess rice stock easily. That's right isn't it GK.

Sent from my GT-P1010 using Thaivisa Connect App

Not making excuses. I am asking why the global commodity market is not taken into consideration. India's is the most oil dependent grain producer in the world. If India had not been able to obtain the Iranian oil at below market cost, it would not have been able to subsidize its rice producers and exporters this year. I don't think the situation will be as favourable for India next year. Nor has India sorted out anything. The fact is that the rains came at the right time during the growing season, a situation that had not occurred in previous years. The Indian agricultural sector is still a mess to the point where Thailan appears efficient and well managed in comparison.

Although corn and rice are not easily exchangeable grain commodities,surplus corn has often been dumped out of the North American market at prices below that of rice. Now that the surplus corn is not available, rice exporters will have an opportunity. I acknowledge that other countries have had bumper harvests this past year. Good for them and good for the world. Unfortunately, in agriculture, weather can be very different in the next growing season. Changes in management strategy take several years to take full effect. One cannot really pass judgement on the strategy for another 1-2 years. Had the grasshopper plague continued in Vietnam and China's floods occurred a few months earlier the Thai strategy would be hailed as brilliant. The flooding in China has significantly damaged the agriculture sector and this will take 6-12 months to show up. It will be interesting to see what China does then. As for India, watch what happens once India cannot circumvent the Iranian oil sanctions.

GK, so now you are an expert in grains? About as much as you know about prawn farming I see.

First your logical premise that if India hadn't had access to cheap oil that it wouldn't have performed so well. Well what is your point? You are only talking about volumes of production here not benefit. The point is for food production to be sustainable and using billions of dollars of subsidies in a developing country is not sustainable my friend. Secondly, do you think the import of oil directly affects rice producers? To the point that it is refined to diesel and used to power tractors, perhaps, but the petroleum intensity of agriculture is not based on tractor use as much as it is in fertilizer, and agri-chemicals. These are imported and stored so the effect of imported oil doesn't trickle down to the various products immediately but rather takes significant time, so your premise is falsified. The market price transmits information to farmers. The point is not to just produce the maximum amount of rice. The point is to produce a strong variety of foods sustainably while maximizing overall benefits for farmers, and down on the value chain and eventually society as a whole.

When you DOUBLE the market price which is already low (the market is saying, "TOO MUCH RICE") the result is well even more TOO MUCH RICE. Farmers with this perturbed signal now respond my producing even more TOO MUCH RICE. Do you understand anything about market economics? The farmers are paid for brown rice which millers have a monopoly on in Thailand (hint for something to change for REAL revolution). If this price is already at the international rate at the farm gate, how do you expect to pay for the milling, transport, storage costs and profit to the risk takers undertaking this business? How can you possibly imagine a scenario where this would be viewed as a "Brilliant" scheme?

In addition, your above quoted paragraph has more would'ves and could'ves than I have seen in my life. My Gawd man, this government can't even predict if it will rain tomorrow with their pocket calculator weather prediction system and you expect them to outsmart companies like Cargill that have rooms full of Cray Supercomputers and 100s of meteorologists on staff to assist them with hedging their global commodity risks??? It is said that Cargill's ability to predict long term weather events is better than any government on the planet.

As for the corn production in the US, do you really think corn and rice are substitutes to ANY degree? Rice is consumed by humans. Rice bran is widely used in feed, but corn is mostly fed to chickens, pigs and cows to make eggs, chicken meat, pork, beef and milk.

In any case, I go back to my main point that you are only looking at one number, production VOLUME. The point is not to keep Thailand number one in production. I am saddened at the situation in Thailand because I used to write ag-policy in an NGO think tank and Thailand is so back-asswards that just a few simple and low cost changes could show dramatic improvements for Thai food production and rural economic development. This is the true revolution that the reds should be promoting, but instead they worship the false idol that is TS and crew to their own demise.

Oh well finally I have a brilliant idea based on GK logic to solve the world's food crisis and eliminate hunger completely:

LET'S JUST DOUBLE THE MARKET PRICE FOR ALL FOOD! Then farmers will produce more and, hey no more hunger. dam_n, I want to run for President of the world this platform.

FYI, Indian/Vietnamese rice prices (processed) is around 13,000THB per ton. So when the government pays 15,000 baht per ton to the farmers, how do you expect this ever to be sustainable or competitive or brilliant?

[puipuitom]

the half kg rice story is plain silly....if that is a problem declare it as something different...even call it only "sample" would work. No one looks at small parcels, you could import half a kg plutonium....

Sorry, but UPC as well as FedEx as DHL refused, even at Postoffice: refused. I even tried it as "wheat grain samples" at another posyoffice, but.. refused also.

And as it does NOT go in an envelop ( all might go to one place), it must be a parcel, so inclusive documents. And that could be openen, as.. you can hear the rice go through the parcel.

But.. problem solved. We use Basmati now. Even to send a sample to Vietnam goes withotu problems. And the cambodians want to gte rid of their Neang Mali too. Even at the other side of the Mekhong they grow the same seeds as what they call in TH: Hom Mali, so why to bother with Thailand anymore.

Edited July 27, 2012 by puipuitom

[Buchholz]

According to the Thai Rice Exporters Association and a US Department of Agriculture forecast, Thailand will this year rank as the world's third-largest rice-exporting country, after India and Vietnam, with shipments reaching just 6.5 million tonnes.

India will become the export leader with 8 million tonnes, followed by Vietnam with 7 million tonnes.

I think there's some "funny business" going on with the experts' projections, as Yingluck assures us that Thailand's target will still surpass India and thus remain # 1.

She knows more about growing rice than they do.

PM assures no funny business in selling Thai rice

As for the rice export target this year, she said it has been set at 8.5 million tons.

.

Edited July 28, 2012 by Buchholz

[Thai at Heart]

The other paper is reporting a change of policy may be coming for the next crop according to spokesman.

[BuckarooBanzai]

Interesting site on rice production:

http://www.irri.org/index.php?option=com_k2&view=item&id=9151&Itemid=100480〈=en.

Thailand is still fundamentally using planting techniques developed centuries ago and would benefit from some well spent government money on reeducating the farmers on more productive methods.

Something about old dogs and new tricks comes to mind however.

[TommoPhysicist]

Thailand is still fundamentally using planting techniques developed centuries ago and would benefit from some well spent government money on reeducating the farmers on more productive methods.

Thailand is still a 'Mom and Pop' farming business. Many paddys have no road access and are very cost effective when planted by hand. It also provides work for people that mechanization replaced in the western world, leading to massive unemployment.

I would suggest the rest of the world should learn from them, rather than making everywhere the slaves of large multi-national companies that own all the land everywhere.

Edited July 28, 2012 by TommoPhysicist

[Buchholz]

The other paper is reporting a change of policy may be coming for the next crop according to spokesman.

par for the course, as just 2 days ago, the Commerce Minister said they wouldn't...

Commerce Minister brushes off criticisms of rice pledging scheme

BANGKOK, 26 July 2012 (NNT) - Commerce Minister Boonsong Teriyapirom has dismissed the speculation that the Thai government’s rice pledging scheme has made the country lose its position as the world’s number one rice exporter.

The minister also confirmed that the new round of rice pledging would buy rice at the same price as the previous round.

2012-07-26

[BuckarooBanzai]

Thailand is still fundamentally using planting techniques developed centuries ago and would benefit from some well spent government money on reeducating the farmers on more productive methods.

Thailand is still a 'Mom and Pop' farming business. Many paddys have no road access and are very cost effective when planted by hand. It also provides work for people that mechanization replaced in the western world, leading to massive unemployment.

I would suggest the rest of the world should learn from them, rather than making everywhere the slaves of large multi-national companies that own all the land everywhere.

If you examine the web site mentioned you will see that it not about mechanization. Their research is about improving "mom and pop" farms to make them more productive. Broadcast seeding and other wasteful approaches are examined and manual methods proposed to help the rural farmer dramatically increase productivity.In no way do I advocate the mechanization of the rural farms in Thailand. In fact I used to enjoy watching the buffalo during plowing season.

[BlackJack]

one of the greatest contributors to global warming = rice farming

[billd766]

According to the Thai Rice Exporters Association and a US Department of Agriculture forecast, Thailand will this year rank as the world's third-largest rice-exporting country, after India and Vietnam, with shipments reaching just 6.5 million tonnes.

India will become the export leader with 8 million tonnes, followed by Vietnam with 7 million tonnes.

I think there's some "funny business" going on with the experts' projections, as Yingluck assures us that Thailand's target will still surpass India and thus remain # 1.

She knows more about growing rice than they do.

PM assures no funny business in selling Thai rice

As for the rice export target this year, she said it has been set at 8.5 million tons.

.

Anybody can set a target for next years rice exports but the acid test comes when they can or cannot meet it.

Of course by this time next year nobody will remember what was said a year ago.

[waza]

According to the Thai Rice Exporters Association and a US Department of Agriculture forecast, Thailand will this year rank as the world's third-largest rice-exporting country, after India and Vietnam, with shipments reaching just 6.5 million tonnes.

India will become the export leader with 8 million tonnes, followed by Vietnam with 7 million tonnes.

I think there's some "funny business" going on with the experts' projections, as Yingluck assures us that Thailand's target will still surpass India and thus remain # 1.

She knows more about growing rice than they do.

PM assures no funny business in selling Thai rice

As for the rice export target this year, she said it has been set at 8.5 million tons.

.

Anybody can set a target for next years rice exports but the acid test comes when they can or cannot meet it.

Of course by this time next year nobody will remember what was said a year ago.

This time next year, unless they reduce the asking price for their rice, Thailand will still have a rice stockpile rotting away in warehouses.

[bumpkin]

Many countries use intervention as part of a strategy for market stabilising. Anyone remember the EU "Butter mountains" and "Wine lakes" ? Or, the earlier US policy of dumping surpluses onto world markets? Globally, matching food production to food requirements is never going to be exact, or anywhere near. Maybe the Thai intervention policy was not handled perfectly, but that is a crticism that can be leveled at most governments, if you take the short-term view. The big factor in crop production, as mentioned by earlier contributors, is the vicissitudes of the weather. This means the weather in all producing countries, not just one. Also, in subsequent seasons. Totally unpredictable.

Perhaps we should be cautious in critising this Thai policy too soon. History will judge.

[warfie]

one of the greatest contributors to global warming = rice farming

What?!?! How?

[Buchholz]

Perhaps more of the same economic polices will lead to Thailand Importanting Rice from India and Vietnam.

Sooner or later the chickens will come home to roost, and in the case of the economic poorly thought out polices, some of the chickens

have already come back and more will be headed home.

Its kind of an economic Karma.

According to reports in the press and observations here. They already are importing rice from Cambodia

By the truckloads.... in order to sell it.... at Yingluck's inflated price.... by calling it Thai rice....

http://www.thaivisa....ost__p__5253478

Seems now that there was a lot more than truckloads of foreign rice being sold as Thai rice for the inflated price.

The Thailand Research and Development Institute has highlighted that as much as 1 million ton of rice is apparently involved as they've compared the numbers of what was produced in Thailand, what was exported, and what was consumed domestically versus the amount listed in Thailand's reserve.

A nice earner for the smugglers, who are no doubt grateful for the over-market price that Thailand is paying out for rice.

.

[slapout]

Thailand is still fundamentally using planting techniques developed centuries ago and would benefit from some well spent government money on reeducating the farmers on more productive methods.

Thailand is still a 'Mom and Pop' farming business. Many paddys have no road access and are very cost effective when planted by hand. It also provides work for people that mechanization replaced in the western world, leading to massive unemployment.

I would suggest the rest of the world should learn from them, rather than making everywhere the slaves of large multi-national companies that own all the land everywhere.

I do not doubt your sencerity in your thoughts and statement, but your last paragraph may be argumentive at best. Taken at its worst interpertation, the description would not be so favorable.

[slapout]

Storage/transport of small grains requires more that a shed to put sacks of grain in. There is little doubt that rice is being brought in from neighboring countries and placed into the program.

Storage facilities are not capable of drying, treating for insects, nor are they rat proof (this inclides the 4 legged and 2 legged type).

History shows us that government sponsered, farm product in Thailand, go missing from storage, the amount of stored product is multiplied by a factor as high as 3, production in Thailand seems to have no bearing on amounts paid for, stored, sold and finally what remains.

The man in Dubi managed to screw up the farm pricing via his 'we will take care of the farmer' routine, when he was in office. Its a repeat of recent history in Thailand and any astute, knowledgeable person can see what pitfalls have been experienced in other countries who have implemented similar programs.

[Payboy]

Has anyone suggested converting the stockpile to sticky rice and lao khao yet?

[Thai at Heart]

Very clear article in the other paper stating that the figures for the amount pledged, amount exported, and amount grown do not add up.

How you move 3,000,000 tonnes let alone 3,000 tonnes of rice across a border unnoticed considering that an average truck carries 15 tonnes is beyond me. There must be literally thousands of people in the know if this smuggling has been going on, and as per normal, everyone stay schtum.....

[Buchholz]

Very clear article in the other paper stating that the figures for the amount pledged, amount exported, and amount grown do not add up.

How you move 3,000,000 tonnes let alone 3,000 tonnes of rice across a border unnoticed considering that an average truck carries 15 tonnes is beyond me. There must be literally thousands of people in the know if this smuggling has been going on, and as per normal, everyone stay schtum.....

Indeed, the volume amounts are staggering.

Add in that those paying taxes in Thailand are financing this rice pledging 'scheme'.

Still, this under-the-table foreign aid program Thailand is having with Cambodia now probably surpasses the efficiency of any official direct-government aid program.

Unfortunately, as you note, this is huge for them, so it's undoubtedly controlled ultimately by the despot Hun Sen.

[Thai at Heart]

Very clear article in the other paper stating that the figures for the amount pledged, amount exported, and amount grown do not add up.

How you move 3,000,000 tonnes let alone 3,000 tonnes of rice across a border unnoticed considering that an average truck carries 15 tonnes is beyond me. There must be literally thousands of people in the know if this smuggling has been going on, and as per normal, everyone stay schtum.....

Indeed, the volume amounts are staggering.

Add in that those paying taxes in Thailand are financing this rice pledging 'scheme'.

Still, this under-the-table foreign aid program Thailand is having with Cambodia now probably surpasses the efficiency of any official direct-government aid program.

Unfortunately, as you note, this is huge for them, so it's undoubtedly controlled ultimately by the despot Hun Sen.

But how does anyone logistically move 3mn tonnes of anything through customs posts with apparently NO ONE noticing. Just do the maths assuming 15mt per truck. This must be enough for every 10 wheel truck in Thailand to be occupied for at least a week. It isn't as though they would put it on boats and sail it down the Mekong.

I have seen the queues in front of the paper mills during delivery season, I have known the shortages of available trucks for my old company during various crop seasons, so to move 3mn tonnes of something around is no small feat just in trucks. Then to do it illegally, how many customs officers, police checks have to be moved through on the hush hush. It requires complete complicity from thousands of people.

[longway]

^{^ Just because the warehouses report having had 22 million tonnes, doesnt mean there is that amount in the warehouses, its just points to the huge dimensions of the scam and the various ways people are milking the system.}

Edited July 30, 2012 by longway

[rubl]

Regarding rice prices:

2011-09-19

"The government says that Thailand has been subsidising global consumers for years, that the new policy will raise prices to a more realistic level and the scheme will impose, or reimpose, a system that actually requires farmers to grow rice to receive their subsidy."

http://thailand-busi...ing-the-poorest

2011-09-16

"Olarn said the government would spend about Bt400 billion on the rice-pledging scheme, under which it will buy white rice at Bt15,000 per tonne and jasmine rice for Bt25,000 from farmers.

He denied the policy would place a debt burden on taxpayers, as had past rice-pledging schemes implemented by Thai Rak Thai- and People's Power Party-led governments, to which the current Pheu Thai Party-led administration is seen as a successor.

The government has not yet compensated the Bank for Agriculture and Agricultural Cooperatives for loans worth about Bt100 billion extended under past schemes.

"We will correct the loopholes in previous rice-pledging schemes," Olarn said.

He said he was confident that the government would be able to release rice to the global market at higher prices."

http://www.nationmul...l-30165404.html

2011-06-16 page 3 of 3

""To compensate employees paying higher wages, we will cut the corporate tax rate to 23 per cent next year and 20 per cent a year later from 30 per cent now. That will more than offset the increased labour cost they face," he said."

http://www.asiaone.c...6-284444/3.html

[Buchholz]

Very clear article in the other paper stating that the figures for the amount pledged, amount exported, and amount grown do not add up.

How you move 3,000,000 tonnes let alone 3,000 tonnes of rice across a border unnoticed considering that an average truck carries 15 tonnes is beyond me. There must be literally thousands of people in the know if this smuggling has been going on, and as per normal, everyone stay schtum.....

Indeed, the volume amounts are staggering.

Add in that those paying taxes in Thailand are financing this rice pledging 'scheme'.

Still, this under-the-table foreign aid program Thailand is having with Cambodia now probably surpasses the efficiency of any official direct-government aid program.

Unfortunately, as you note, this is huge for them, so it's undoubtedly controlled ultimately by the despot Hun Sen.

But how does anyone logistically move 3mn tonnes of anything through customs posts with apparently NO ONE noticing. Just do the maths assuming 15mt per truck. This must be enough for every 10 wheel truck in Thailand to be occupied for at least a week. It isn't as though they would put it on boats and sail it down the Mekong.

I have seen the queues in front of the paper mills during delivery season, I have known the shortages of available trucks for my old company during various crop seasons, so to move 3mn tonnes of something around is no small feat just in trucks. Then to do it illegally, how many customs officers, police checks have to be moved through on the hush hush. It requires complete complicity from thousands of people.

the other paper's figures for the illegal importation was put at 1 million tons, and 3 million overall scams involving the unaccounted for rice. Still, a huge amount to be sure, lots of people involved, and all is properly hushed.

.

[Buchholz]

Regarding rice prices:

2011-09-16

"Olarn said the government would spend about Bt400 billion on the rice-pledging scheme

He denied the policy would place a debt burden on taxpayers, as had past rice-pledging schemes implemented by Thai Rak Thai- and People's Power Party-led governments, to which the current Pheu Thai Party-led administration is seen as a successor.

The government has not yet compensated the Bank for Agriculture and Agricultural Cooperatives for loans worth about Bt100 billion extended under past schemes.

Four Hundred Billion Baht....

and just like the Thai Rak Thai Party and the People Power Party, the Pheu Thai Party will also have taxpayers paying for it all.

Counting their debts drives it up to

Half A Trillion Baht.....

(Dig Deeper, Taxpayers)

.

Edited July 30, 2012 by Buchholz