Rice-Pledging Scheme: Export Deals Done For 7 Million Tonnes, Thai Govt Says

[webfact]

RICE-PLEDGING SCHEME

Export deals done for 7 million tonnes, govt says

Piyanart Srivalo,

Pranee Muenphangwaree

The Nation

Sales are through government-to-government agreements, though exact figures are not being disclosed

BANGKOK: -- The government yesterday announced it has sold as much as 7 million tonnes of rice to other countries - mostly under government-to-government deals - but it declined to discuss the export figures in detail.

Prime Minister Yingluck Shinawatra said the Commerce Ministry has entered into agreements for rice exports. However, she added that the shipments of the rice would be done soon and therefore no export figures were available.

"The deliveries will be gradual. The whole 7 million tonnes will not be shipped at once," Yingluck said at the Parliament building. She then referred to her commerce minister to answer further questions.

She wore a tense expression when dealing with the media on the rice issue.

On Tuesday, Virabongsa Ramangkura, who is considered the government’s chief economic adviser, warned that the government should swiftly scrap the expensive and corruption-plagued rice-pledging scheme, or "the country will be doomed".

Yingluck said yesterday that she was not angry with Virabongsa for criticising the rice policy.

"Everybody has the right to be concerned. We have the duty to explain," she said. "We listen to all the advice, but the government has the mechanism for scrutiny."

She said rice from the government stockpile was sold to foreign governments "at suitable prices", based on world market prices. She added that if the rice were sold locally, the government would not get as good a price.

Virabongsa is chairman of the Bank of Thailand and a key member of the government's Strategic Formulation Committee for Reconstruction and Future Development.

Commerce Minister Boonsong Teriyaphirom insisted yesterday that there was nothing wrong with the sale of 7 million tonnes of rice. "There should be no worries about this."

Boonsong said the Cabinet has assigned Deputy Prime Minister Chalerm Yoobamrung to head a team to investigate graft allegations in the rice-pledging programme. "We are doing whatever we can, so don't worry," he added.

In response to the opposition's allegations that most of the rice from the government's stocks were sold inside the country, the commerce minister said the rice sales were in fact in the form of government-to-government export deals. "Many countries have entered into agreements with us," he said.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong also vouched for the rice-pledging project yesterday, saying "it is a good policy".

Kittiratt said he believed that Virabongsa also had confidence in the policy although Virabongsa was concerned that poor handling of the project could lead to unexpectedly negative results.

The finance minister also said if the government were serious about tackling corruption, those involved in the graft would be discouraged.

Meanwhile, exporters say there have been no government-to-government orders, which could pull down export prices for the remaining months of this year.

Chookiat Ophaswongse, honorary president of Thai Rice Exporters Association, said that as of yesterday, there have been no government-to-government rice exports. Thai rice exports reached 550,000 tonnes last month, all by the private sector, Chookiat said. And there's not yet any sign of the government's plans for rice exports from October to December.

"If there are going to be exports as claimed, there should be preparation of sacks and other related materials in advance, but things have been quiet in the market," said Chookiat.

"Countries such as Indonesia and the Philippines, which the government claims have made purchases, have also denied any deals, saying that they have not imported any Thai rice," he said.

Chookiat added that the government has stated China will purchase 2 million tonnes of rice at the price of US$500 per tonne. In fact, China will purchase from if the government if the price is discounted to $460 to $470 per tonne, which comes close to the $440 per tonne that Vietnam offered Beijing. Or, China would broker a barter deal for Thai rice, Chookiat said.

However, Boonsong insisted that the government would export between 1.8 million and 2 million tonnes of rice before the end of the year.

"We have government-to-government agreements with Indonesia but we are negotiating with the Philippines. We cannot give more details on the agreements and volumes as it is a sensitive issue to international relationships," Boonsong said.

-- The Nation 2012-10-04

[Moruya]

We have the duty to explain....

But we won't tell the public how much money taxpayers have lost.

Dishonesty in motion.

[HiSoLowSoNoSo]

Export deals done for 7 million tonnes, govt says

"If there are going to be exports as claimed, there should be preparation of sacks and other related materials in advance, but things have been quiet in the market," said Chookiat.

"Countries such as Indonesia and the Philippines, which the government claims have made purchases, have also denied any deals, saying that they have not imported any Thai rice," he said.

"We cannot give more details on the agreements and volumes as it is a sensitive issue"

As transparent as ever!

[rubl]

So, sold at 'suitable prices', 'there should be no worries', 'we are doing what we can'.

Or in other words:

"have a lollipop, now hop along, go play in the water we provided and don't bother us with these type of questions"

BTW yesterday k. Abhisit said to submit a no-confidence motion against the government within this month and that the opposition would not wait for the government to announce its performance to Parliament on the first anniversary first.

http://www.thaivisa....25#entry5720948

[Skywalker69]

Sales are through government-to-government agreements, though exact figures are not being disclosed.

We can´t admit we are bad bussinesmen now.can we?

[FOODLOVER]

"Everybody has the right to be concerned. We have the duty to explain," she said. "We listen to all the advice, but the government has the mechanism for scrutiny."

"There should be no worries about this."

"it is a good policy".

Chookiat Ophaswongse, honorary president of Thai Rice Exporters Association, said that as of yesterday, there have been no government-to-government rice exports. Thai rice exports reached 550,000 tonnes last month, all by the private sector, Chookiat said. And there's not yet any sign of the government's plans for rice exports from October to December.

"If there are going to be exports as claimed, there should be preparation of sacks and other related materials in advance, but things have been quiet in the market."

[Thai at Heart]

What a load of bs.

[slapout]

The government is not sure of how much rice has been brought into the scam, where it is physically located,(cost incurred, other than they need more money) where the money has gone (Chalem has yet to find evidence of corruption), the Finance Minster seemly admits there is graft, but hopes it will be discourged, and now 7 million tons has been hinted at going somewhere secret.

The old Abbott/Costello baseball scene of 'Who's on first, etc' comes to mind as there seems to be a single party completely confused in both of these comedies.

[dcutman]

You would think there would be outrage by the Thai public, with a story like this. But this story like most others get washed down the drain like a turd in the toilet.

[whybother]

The finance minister also said if the government were serious about tackling corruption, those involved in the graft would be discouraged.

They won't be stopped and put in jail ... they'll just be discouraged.

[Nickymaster]

This government is screwing the country and its people with a smile. Unbelievable.

[ratcatcher]

"She wore a tense expression when dealing with the media on the rice issue."

Most people tense up when they are telling porkies. It's natural.

7 million tonnes is a lot of rice and it isn't going out in sacks on the back of trucks.

Chookiat Ophaswongse, honorary president of Thai Rice Exporters Association, said that as of yesterday, there have been no government-to-government rice exports."

So, who is lying here? Yingluck or Chookiat?

[OzMick]

In a government to government deal, if they actually exist, I have to assume the buyer is getting a cheaper price than the the going market rate, or why bother.

So if the government is selling off-market at lower than market rate, and thus reducing demand, how does this force up the price of rice as the "WGB" says will happen?

[Sayonarax]

Yingluck said yesterday that she was not angry with Virabongsa for criticising the rice policy.

Your not paid to have feelings.

[trainman34014]

Just another face saving exercise by a bunch of conniving liars. This weeks 'Bullshit Bulletin'. Watch out for next weeks exciting episode !

[Skywalker69]

This government is screwing the country and its people with a smile. Unbelievable.

And people getting screwed keeps on smiling.

[Arkady]

It's funny that the export customers are unaware they have ordered Thai rice. If they do, the rice pledging amounts to the Thai taxpayer subsidising rice consumers in other countries. Why not just pay the subsidy direct to the peasants, regardless of how much rice they produce and leave the rice price alone? At least the peasants would then get all of it and channel it straight back into the economy in the form of mobile phones and downpayments on motorbikes and pick-up trucks. The money syphoned out of the scheme goes into the hands of millers, politicians and civil servants who are already well off and are more likely to save the money and/or stash it overseas.

A lot of the rice is pledged in the names of the many people who own small plots of farmland upcountry but work in the city and have no time to plant anything on their land without their knowledge. If they ever find out, they don't dare to complain as they or their family members could be murdered.

[rubl]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

[siampolee]

Looks like there is an epidemic of , '' little white lies.''

[IsaanUSA]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

Wow, and the OP says Vietnam offered it at $440 a ton to China. What a huge let down.

[RogueExpat]

These guys will say anything, absolutley anything to avoid embarassment over monumentally stupid decisions.

God help protect us from these idiots!

But then again, 7 million tonnes @ $300 per tonne subsidy between market and government purchase price has found its way into somebodies pockets. Maybe not so stupid.....

2.1 Billion dollars..... give or take....

[Skywalker69]

What a load of bs.

Another day in "Scamland"

[MaiChai]

When was the last time you saw Thai rice on UK supermarket shelves? Answer: about 2years ago when it was competitive with other varieties. The supermarkets know consumer's won't buy it at its current price.

[SICHONSTEVE]

Bunch of lieing losers - get them out for christ's sake as Thailand has lost the plot and it will soon reach the point of no return!!!

[TheKrayTriplet]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

Wow, and the OP says Vietnam offered it at $440 a ton to China. What a huge let down.

I think you missed the word "may" in the text and just how much thai jasmine rice does vietnam produce?

[Nickymaster]

I believe it is not fair to give Thaksin credit for inventing this rice buying/selling scam. The Indians were first!!

http://oryza.com/Rice-News/15361.html

Edited October 5, 2012 by Nickymaster

[rubl]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

Wow, and the OP says Vietnam offered it at $440 a ton to China. What a huge let down.

I think you missed the word "may" in the text and just how much thai jasmine rice does vietnam produce?

'may' indeed. So with the price pledging of 15,000 - 20,000 depending on type and quality how does that translate into a minimum price in US$ which assures no profit / no loss ?

[IsaanUSA]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

Wow, and the OP says Vietnam offered it at $440 a ton to China. What a huge let down.

I think you missed the word "may" in the text and just how much thai jasmine rice does vietnam produce?

Oh, I was just pointing out that the expected (hoped for) price was not even close to the actual price. Sad.

Another posted asked when was the alst time you saw Thai rice for sale at the supermarket in the UK. I never shop for rice but last night at the supermarket here in the US I noticed that the rice was sold by the country and by the year. So they had Thailand 2011 and 2012 as well as Vietnam 2011 and 2012. They had 50 pound (weight) bags piled about a meter and a half of all four varieties. I honestly have no clue about the years of the rice and how that relates to quality or whatever.

[philw]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

Wow, and the OP says Vietnam offered it at $440 a ton to China. What a huge let down.

I think you missed the word "may" in the text and just how much thai jasmine rice does vietnam produce?

Nice one.

Thai rice commands a premium because of it's perceived quality, but one mustn't let that get in the way of a good bashing session.

Off topic a little, but a couple of my staff, making something more than the disgraceful and catastrophic minimum wage, are also looking forwards to a 100,000 baht rebate on their new cars.

[rubl]

How time flies without really things changing

2011-10-06

"Yingluck aims to insulate the country of 67 million people from a global slowdown and the nation's worst flooding in half a decade by lifting incomes of poorer Thais who propelled her party to victory in a July election. The plan to guarantee rice prices may boost export rates by 20 percent to $735 a metric ton and erode Thailand's share of the global market, according to a Bloomberg News survey of exporters, millers and traders."

http://www.bloomberg...ck-says-1-.html

Wow, and the OP says Vietnam offered it at $440 a ton to China. What a huge let down.

I think you missed the word "may" in the text and just how much thai jasmine rice does vietnam produce?

Nice one.

Thai rice commands a premium because of it's perceived quality, but one mustn't let that get in the way of a good bashing session.

Off topic a little, but a couple of my staff, making something more than the disgraceful and catastrophic minimum wage, are also looking forwards to a 100,000 baht rebate on their new cars.

Well, thank you for this commercial, but 'perceived quality' and what people are prepared to pay are two different things. No need to go bashing about it, just plain, old fashioned common sense. Mind you, indeed less related to Thai, but that's hardly my fault.

I'm happy for your employees who finally can be a first time car owner, even if the government needed to help them to augment the already extravagant salary you paid