Thai Govt Set To Release 500,000 Tonnes Of Jasmine Rice

[webfact]

Govt set to release 500,000 tonnes of jasmine rice

PETCHANET PRATRUANGKRAI

THE NATION

BANGKOK: -- The Commerce Ministry plans to release 500,000 tonnes of jasmine rice upon the urging of exporters amid high demand in the world market.

After meeting yesterday with rice exporters, Commerce Minister Boonsong Teriyaphirom said the government would gradually release rice from its stockpiles via auctions.

Private exporters have voiced concern that they have no rice to ship because the government has taken over most of farmers' produce with its high pledging price.

Boonsong said exporters had agreed on the government's measures for releasing the rice and would join the auction process.

Charoen Laothamatas, vice president of the Thai Rice Exporters Association, said the government should release its stocks, particularly jasmine rice, over a short period to ensure quality.

He pointed out that Thailand normally exports about 200,000-250,000 tonnes of jasmine rice a month, but volume had dropped by 10 per cent since early this year because of the low supply.

"It is a good time to sell jasmine rice amid high demand in the world market. The government should release its jasmine rice so that it will not deteriorate in quality," Charoen said.

Korbsook Iamsuri, president of the association, said she had high hopes that the government would work more closely with private firms in promoting export of Thai rice.

As the major rice holder, the government should closely cooperate with the private sector to ensure a balanced supply of rice in the market, so that exporters would have an adequate supply to serve the global demand, she said.

-- The Nation 2012-10-13

[Thai at Heart]

Don't get it. The millers say they can't export because price is high. But now they can't export because they have no rice.

So, government, releases ( whatever that means) and millers intend to do what? Sell it of course. No price info given whatsoever.

[asiawatcher]

The rice pledging and stockpiling decree is a complete failure but is still being upheld due to the puppet masters cronies controlling the greed factor. Even Thailand's Universities have called it madness. And now facts have been revealed in the last few days the markets are buying elsewhere, so now these fools are going to release some tonnage? Amazing Thailand - thinking basic economics of supply and demand can be cheated.

Edited October 13, 2012 by asiawatcher

[Ricardo]

Still would make only a minor dent in the government-stockpile, but given the urgent need to clear space for the next crop, it should happen.

The snag being, when the exporters' bids are lower than the government has paid to acquire & store the rice, then the government's losses are crystalised and confirmed for all to see, or failing that to be recorded in the government-accounts, at least.

Which poo-yai would be eager to take this unfortunate decision, cue rapid departures for holidays or training-courses, or perhaps a nice study-tour to India & Vietnam to see how current leading-exporters arrange such matters ?

[catmac]

Whenever Governments interfere with the market - however good their intentions may be - it usually ends up in a total shambles for all concerned. The EU's agriculrural policy of subsidies created one fiasco after another. When will we ever learn?

[Thai at Heart]

I still don't get the word release. Surely it means sell? But at what price?

[smedly]

Don't get it. The millers say they can't export because price is high. But now they can't export because they have no rice.

So, government, releases ( whatever that means) and millers intend to do what? Sell it of course. No price info given whatsoever.

They said it would be auctioned in the OP - that means to me they have so much of it they need to shift it before it spoils and is worthless, and who created this debacle ? rice for votes

By the time the rice industry in this country gets back on it's feet customers will have moved away from Thailand to Burma Cambodia and Vietnam, and TBH it serves them right, I just hope the people involved lay the blame in the right place.

[easybullet3]

IMAGINE ALL THE WEEVILS !!!!! sitting in stockpiles for months on end!!!

[AleG]

Don't get it. The millers say they can't export because price is high. But now they can't export because they have no rice.

So, government, releases ( whatever that means) and millers intend to do what? Sell it of course. No price info given whatsoever.

They said it would be auctioned in the OP - that means to me they have so much of it they need to shift it before it spoils and is worthless, and who created this debacle ? rice for votes

By the time the rice industry in this country gets back on it's feet customers will have moved away from Thailand to Burma Cambodia and Vietnam, and TBH it serves them right, I just hope the people involved lay the blame in the right place.

Nope... not gonna happen.

The usual dynamic is, Party A comes into government throwing money around like there's no tomorrow. People love the free money, Party A is so popular. Then of course the bill comes and the whole thing collapses, Party A slithers away, Party B comes in to clean the mess, imposes austerity measures, no more freebies to buy the electorate, people hate Party B and can't wait to get Party A to bring back the good times.

And so on and so forth.

[sfbandung]

Whenever Governments interfere with the market - however good their intentions may be - it usually ends up in a total shambles for all concerned. The EU's agriculrural policy of subsidies created one fiasco after another. When will we ever learn?

Agree entirely. Look at Australia at the Australian Wheat Board and the Australian Wool Corporation debacles. At one stage they held so much wool that releasing it all at once would have killed the world market. One piece of advice at the time was to burn the stockpile.

This pledging scheme had disaster written all over it.

[Thai at Heart]

Whenever Governments interfere with the market - however good their intentions may be - it usually ends up in a total shambles for all concerned. The EU's agriculrural policy of subsidies created one fiasco after another. When will we ever learn?

Agree entirely. Look at Australia at the Australian Wheat Board and the Australian Wool Corporation debacles. At one stage they held so much wool that releasing it all at once would have killed the world market. One piece of advice at the time was to burn the stockpile.

This pledging scheme had disaster written all over it.

Releasing it did kill the market.

[hellodolly]

The rice pledging and stockpiling decree is a complete failure but is still being upheld due to the puppet masters cronies controlling the greed factor. Even Thailand's Universities have called it madness. And now facts have been revealed in the last few days the markets are buying elsewhere, so now these fools are going to release some tonnage? Amazing Thailand - thinking basic economics of supply and demand can be cheated.

Makes one wonder at how high a loss they are going to take. The world may have a shortage but it would have to be gigantic to drive prices up to what the Government paid. I have no facts but I would imagine countrie can still get it delivered for less than what the Thai Government paid for it.

[hellodolly]

The rice pledging and stockpiling decree is a complete failure but is still being upheld due to the puppet masters cronies controlling the greed factor. Even Thailand's Universities have called it madness. And now facts have been revealed in the last few days the markets are buying elsewhere, so now these fools are going to release some tonnage? Amazing Thailand - thinking basic economics of supply and demand can be cheated.

Makes one wonder at how high a loss they are going to take. The world may have a shortage but it would have to be gigantic to drive prices up to what the Government paid. I have no facts but I would imagine countrie can still get it delivered for less than what the Thai Government paid for it.

edit

I just had a thought what has been happening with the price of rice here in Thailand for domestic sales. I never pay attention. The wife just puts it in the basket and I pay for it. She does seem to do some price comparisons how ever.

[bigbamboo]

Is this man related to Kittirat by any chance?

[hellodolly]

Head Lines from another thread

• 
  
• Admin
  
• 
  
• 68,944 posts
  

Posted Today, 06:46

Thailand readies airport warehouse to store record stocks of rice

By Apornrath Phoonphongphiphat

BANGKOK (Reuters) - The Thai government plans to use an old airport warehouse and is desperately hunting for more storage space for a mountain of rice that has resulted from a subsidy scheme that won it votes but which is now sapping the treasury.

Traders estimate the government has a record 12 million tonnes of milled rice in stockpiles, bought in a controversial intervention scheme under which it pays farmers way above the market price for their grain.

"We have prepared a 30,000 square metre warehouse at Don Muang Airport for the government to store rice and we are asking around whether other government organisations have any space left for keeping rice," Transport Minister Jarupong Ruangsuwan said on Friday.

The old Bangkok airport recently reopened after extensive refurbishment made necessary by flooding a year ago.

Aparently they are not selling enough. What is the shelf life of rice in a warehouse?

[ginjag]

Don't get it. The millers say they can't export because price is high. But now they can't export because they have no rice.

So, government, releases ( whatever that means) and millers intend to do what? Sell it of course. No price info given whatsoever.

They said it would be auctioned in the OP - that means to me they have so much of it they need to shift it before it spoils and is worthless, and who created this debacle ? rice for votes

By the time the rice industry in this country gets back on it's feet customers will have moved away from Thailand to Burma Cambodia and Vietnam, and TBH it serves them right, I just hope the people involved lay the blame in the right place.

Nope... not gonna happen.

The usual dynamic is, Party A comes into government throwing money around like there's no tomorrow. People love the free money, Party A is so popular. Then of course the bill comes and the whole thing collapses, Party A slithers away, Party B comes in to clean the mess, imposes austerity measures, no more freebies to buy the electorate, people hate Party B and can't wait to get Party A to bring back the good times.

And so on and so forth.

The reality is whoever is in power paid the most money to the electorate + pre election pledges. Same will happen the next time, until this is stopped. Who in hell will try to stop this ???? if the rice is held--it is for gain--if it's released it will be for gain for whoever is involved.

[Crushdepth]

There's a word for government-sponsored manipulation of the market: Stupid.

[Thai at Heart]

There's a word for government-sponsored manipulation of the market: Stupid.

In a market like this that is so commoditised, it's almost impossible. I know that not all rice is the same, but most consumers don't care, and the absolute best, makes up only a tiny portion of production.

To most, rice is rice.

[AleG]

There's a word for government-sponsored manipulation of the market: Stupid.

There's a name for those that use inside information from government market manipulations: Billionaire.

[jerrysteve]

THEY seriously screwed with market, and as such, they are going to have to take their LUMPS just like everyone else.

[dcutman]

Private exporters have voiced concern that they have no rice to ship because the government has taken over most of farmers' produce with its high pledging price.

Yeh and doing what with it?

Commerce Minister Boonsong Teriyapirom again insisted that he had sold 7.3 million tonnes of rice to foreign governments, including China, Indonesia and the Philippines.

"Around 1.4 million tonnes of rice has already been shipped to those countries," he told reporters. He has declined to go into detail.

Exporters and industry officials have seen no evidence of such sales at the ports or in statistics. Both Indonesia and the Philippines have denied any such deal and there has been no word from China.

Export data from the Ministry of Commerce shows rice shipments of around 5 million tonnes so far this year, down 44 percent from the same period last year.

The premier emphasised that her government did sell rice through government-to-government deals to other countries including some ASEAN countries. Initially, more than 8 million tonnes of rice have been delivered. The details, however, could not be disclosed. (MCOT online news)

There are some serious accounting errors here. You cant put 3 million tons of rice in your pocket and fly to Dubai with it.

[khunken]

Private exporters have voiced concern that they have no rice to ship because the government has taken over most of farmers' produce with its high pledging price.

Yeh and doing what with it?

Commerce Minister Boonsong Teriyapirom again insisted that he had sold 7.3 million tonnes of rice to foreign governments, including China, Indonesia and the Philippines.

"Around 1.4 million tonnes of rice has already been shipped to those countries," he told reporters. He has declined to go into detail.

Exporters and industry officials have seen no evidence of such sales at the ports or in statistics. Both Indonesia and the Philippines have denied any such deal and there has been no word from China.

Export data from the Ministry of Commerce shows rice shipments of around 5 million tonnes so far this year, down 44 percent from the same period last year.

The premier emphasised that her government did sell rice through government-to-government deals to other countries including some ASEAN countries. Initially, more than 8 million tonnes of rice have been delivered. The details, however, could not be disclosed. (MCOT online news)

There are some serious accounting errors here. You cant put 3 million tons of rice in your pocket and fly to Dubai with it.

No but you can put 3 million baht in your luggage & fly to Dubai with it.

[dcutman]

Private exporters have voiced concern that they have no rice to ship because the government has taken over most of farmers' produce with its high pledging price.

Yeh and doing what with it?

Commerce Minister Boonsong Teriyapirom again insisted that he had sold 7.3 million tonnes of rice to foreign governments, including China, Indonesia and the Philippines.

"Around 1.4 million tonnes of rice has already been shipped to those countries," he told reporters. He has declined to go into detail.

Exporters and industry officials have seen no evidence of such sales at the ports or in statistics. Both Indonesia and the Philippines have denied any such deal and there has been no word from China.

Export data from the Ministry of Commerce shows rice shipments of around 5 million tonnes so far this year, down 44 percent from the same period last year.

The premier emphasised that her government did sell rice through government-to-government deals to other countries including some ASEAN countries. Initially, more than 8 million tonnes of rice have been delivered. The details, however, could not be disclosed. (MCOT online news)

There are some serious accounting errors here. You cant put 3 million tons of rice in your pocket and fly to Dubai with it.

No but you can put 3 million baht in your luggage & fly to Dubai with it.

I dont know, maybe, But 3 million baht and 3 million tons of rice are a bit different. I was being factious, but what is your point?

[bigbamboo]

Now at last we have it.

Thailand....... the hub of white lies.

[ratcatcher]

Now at last we have it.

Thailand....... the hub of white lies.

Yes, and this is their logo.

[kerrysum]

Gee,

I guess I just look at the Thai's here in America..... They do not favor the old rice crop, but the new rice.... So if they stock pile it, who will want to buy it?????? I know here in Las Vegas, the stores are apologizing, for the prices, but also comment that no one is buying it at such a high price...... And there is no where near the quantities that they used to stock... Owners are telling me, they can't afford to buy too much of it, if they do not know if they can sell it..... HMMMMMMMMMMM..... Sales have dropped 50% here locally.........

But I have seen many Thais in the local Phillipino stores, buying their rice, their comments? Thai rice too expensive, I have to eat...... Dedication versus the dollar I guess.... My Thai wife is quickly understanding, the price variation, she loves my American home cooked meals now..... Guess I can say good job Yingluck, I think your sales will plummet.... So guess your rice will only be for the elite? What about the farmers that are growing it? The real problem is with the middle-men, not the Thais that grow the rice.... Profit they not.....

Just my opinion......

[belg]

will they sell with any profit? or else, what was the use of buying huge stocks of "lower quality" rice from other countries? just to get the millers even richer, what else ?

[Ricardo]

will they sell with any profit? or else, what was the use of buying huge stocks of "lower quality" rice from other countries? just to get the millers even richer, what else ?

A cynic might wonder, what influential person connected with PTP might wish to do Hun Sen a favour, by getting his rice-farmers a better price for their informal-exports across the border ?

And no, it is unlikely that the government is selling its rice for more than world-market prices, in any of these deals government-to-government 'for delivery by the end of 2013'.

Even current world-prices would be below-cost, and hence loss-making for the government, which is why there's a sudden need to keep the sales-prices secret (aka 'commercially confidential' which sounds less devious) from Thai tax-payers, who might otherwise wonder what else their money might have been spent on.

never mind ... its only public money, after all !

Edited October 15, 2012 by Ricardo

[Crushdepth]

*

Edited October 15, 2012 by Crushdepth