Government Will Sell 5% Of Rice In Its Stock To 5 Export Companies

[Jai Dee]

Government will sell 5% of rice in its stock to 5 export companies, worth 7.37 billion baht

Commerce Minister Somkid Jatusripitak (สมคิด จาตุศรีพิทักษ์) has approved the 5% sales of the rice in the government's stock to five export companies. The sales are worth 184 million US dollars.

Foreign Trade Department Director-General Rachane Photjanasunthorn (ราเชนทร์ พจนสุนทร) has disclosed that eight companies have submitted their proposals to purchase rice from the government for the purpose of exportation on January 31st. The responsible working committee then presented their conclusions to Commerce Minister Somkid, who approved the sales of 623,716 tons of white rice to five of the contenders due to their better offerings in terms of prices and conditions.

This selling of rice in the government's stock is noted to be able to fetch prices higher than the market price, and reflects the high market demand for rice. The government will receive around 7.371 billion baht on this transaction.

Source: Thai National News Bureau Public Relations Department - 07 Febuary 2006

[sriracha john]

sell???... as in, for cash???

You mean they're not going to barter trade the rice for hand grenades or combat boots or some such???

[sierra01]

Sounds like a few of Mr T's buddies will be making a some extra baht.

[h90]

normaly rice will be traded for russian airplaines

sell???... as in, for cash???

You mean they're not going to barter trade the rice for hand grenades or combat boots or some such???

[cclub75]

It means that the total stock of the government before the sale was :

12,47 millions of tons (jasmine quality along all the other grades ?)

Exports were :

2005 = 7,2 millions of tons

2004 = 9,8 millions (record)

2003 = 7,5 millions

To understand the foolish policy (albeit "popular" and populist) policy of the governement regarding rice regulations :

http://www.redorbit.com/news/technology/35...ce=r_technology

Prices are maintained high (+ also value of the THB) = thai rice is not competitive compared to vietnam or india for instance.

Once again, the same scheme about gasoline one year ago = subsidized market.

We saw what happened 100 billions THB spent later... Another debt.

UE can subsidize like crazy its agriculture... I'm not sure that Thailand can do the same, over a long period of time.