What To Do About Thailand's Rice Glut

[SICHONSTEVE]

Everyone should read the full article by the Philippine journalist. With India at less than half the cost of Thailand (20 cents per kilo as opposed to Thailand at 48 cents) it is no wonder they have taken market share and as stated, for the first time in 30 years, Thailand has been toppled. He also clearly states it is a populist decision.

I think everyone agrees the rice scam is not based on any fiscal responsibility, far from it, and whilst the debate rages, there is nothing being done about solving the issue as no one is taking on this Govt. There should be a cooperative by rice farmers who refuse to sell (mortgage) their rice to the Govt and they can then sell directly to the market at the existing prices i.e. about $120 per tonne below the Govt price to meet what the market will buy for. This would mean they get a huge increase than by selling to the market over and above what the Govt was dishing out and cut the Govt out as the middleman. There is no 'law' saying all rice must be sold to the Govt so drop them out, deal direct and they will prosper. Perhaps it needs an enterprising Farang to set it up for them.

Whooaaa!!!!

Did I read it right? "An enterprising farang to set it up" - you are kidding, I hope, as they will throw you out of Thailand for making such an audacious statement such as this up!!.

Don't worry, if it wasn't attached to an MNC, any enterprising farang messing with the domestic rice market would probably befall a horrendous accident or accidentally shoot himself 3 times in the head whilst hanging himself, in the presence of three naked dwarf katoeys, a sheep, all wrapped in clingfilm with baby oil.

What a way to go!!!

I'm not sure which of the two (sheep or the naked dwarf katoeys) would be the more disturbing - depending I suppose, on how they were involved in the happenings!!!

I'm a little bit worried at how your mind works by the way!!!

......... and we do seem to have gone a tad off topic as well

[animatic]

irony beyond words in this whole story.

Flood most of the nation,

by not letting the small flooding happen

and so not lose rice pledging rice.

Over price the pledged rice out of the market.

and that causes a glut it just doesn't get sold.

try and sell it at al loss and even that isn't working well.

As usual, ill conceived political decisions ruin a thriving business model

that was top of the market chain for years. and run it into the ground.

The only real problem before was to stop price gouging by middle men and get more

of the income to the producer level.

Main problem is those middle men are also producers in the liege lords political machine.

And there's the rub.

Edited November 8, 2012 by animatic

[Crushdepth]

Dump it on the world market, particularly in thse countries purchasing from India.

Let India have a taste of its own medicine. The UN food program purchases large amounts of rice and Thailand can easily undercut other suppliers. I'd expect Vietnam which has been badly hurt by India to participate.

They *are* dumping it. What do you think those secret government-to-government deals are?

[rubl]

2012-11-08

FAO Food Price Index falls slightly in October

http://reliefweb.int...lightly-october

Some more historical info:

http://www.fao.org/w...pricesindex/en/

[farangbanok]

I am a simple person - with a simple understanding of the finance world, so forgive me if I seem stupid.

If the Thai baht was not held artificially strong to enhance the profits of a few obscenely rich families then Thai prices would be more competitive.

Pre-Thaksin .... 1 UKP = 65 -70 THB

Thaksin .......... 1 UKP = 68 - 75 THB

Coup .............. 1 UKP = 68 - 72 THB

Post-coup ....... 1 UKP = 68 - 72 THB

Democrats ...... 1 UKP = 45 - 50 THB

Current Govt ... 1 UKP = 45 - 50 THB

Returning to the pre-Democrat exchange rate would cut the price of Thai rice on the World Market, with the added bonus that families supported by Thai overseas workers (and ex-pats of course) would see an almost 50% increase in their money.

Sadly this cannot change when TH controls the Thai baht on Forex market. If the THB floated and was traded normally it would not have held its value during the "Big Flood".

[Mosha]

Here's a headline I'd love to see in the newspapers worldwide.

"Thaksin Shinawatra orders Puea Thai Party to donate excess rice to feed the world's hungry"

Thaksin Shinawatra de facto Prime minister of Thailand today ordered 50% of the huge piles of stored rice stocks to be donated to the poorest nations to feed their starving populations. Mr Thaksin a billionaire living in self imposed exile spoke candidly about his desire to help those unable to help themselves. He regrets the rice pledging scam scheme and says it was not really his idea at all.

He is planning to use his own funds to pay the Thai government for the cost of the rice and shipping to destinations, mainly in Africa and N.Korea. He says that he realises that his jet set life style is counter to the teachings of the Lord Buddha.

His spokesman Noppadon Patama was nowhere to be found for comment.

Now that would make a story.

May appear the beginning of April

[pattayaorganic]

OR...Implement an educational system which prepares the populace to work in industries that produce products in high demand worldwide. Instead of looking at India's rice production, look at Korea's transformation from a peasant agricultural society into a giant in the technical industries. LOOK AHEAD...NOT BACKWARDS!!!

That's just brilliant man. So let's have all of SE Asia get out of food production and into making TVs and mobile phone and refrigerators. Oh, wait we won't need refrigerators because there will be nothing to put inside...

[SICHONSTEVE]

OR...Implement an educational system which prepares the populace to work in industries that produce products in high demand worldwide. Instead of looking at India's rice production, look at Korea's transformation from a peasant agricultural society into a giant in the technical industries. LOOK AHEAD...NOT BACKWARDS!!!

That's just brilliant man. So let's have all of SE Asia get out of food production and into making TVs and mobile phone and refrigerators. Oh, wait we won't need refrigerators because there will be nothing to put inside...

Not part of the farming fraternity are we???

[Thai at Heart]

I am a simple person - with a simple understanding of the finance world, so forgive me if I seem stupid.

If the Thai baht was not held artificially strong to enhance the profits of a few obscenely rich families then Thai prices would be more competitive.

Pre-Thaksin .... 1 UKP = 65 -70 THB

Thaksin .......... 1 UKP = 68 - 75 THB

Coup .............. 1 UKP = 68 - 72 THB

Post-coup ....... 1 UKP = 68 - 72 THB

Democrats ...... 1 UKP = 45 - 50 THB

Current Govt ... 1 UKP = 45 - 50 THB

Returning to the pre-Democrat exchange rate would cut the price of Thai rice on the World Market, with the added bonus that families supported by Thai overseas workers (and ex-pats of course) would see an almost 50% increase in their money.

Sadly this cannot change when TH controls the Thai baht on Forex market. If the THB floated and was traded normally it would not have held its value during the "Big Flood".

Artificially strong? Oh yeah, economic situations in the usa, eu and the uk are just rosy.

Please note that the value you quote pre thaksin reflect a post currency crisis situation in asia. In fact one would probably consider the eu or the usa perfectly positioned for their own crisis.

[OzMick]

Dump it on the world market, particularly in thse countries purchasing from India.

Let India have a taste of its own medicine. The UN food program purchases large amounts of rice and Thailand can easily undercut other suppliers. I'd expect Vietnam which has been badly hurt by India to participate.

They *are* dumping it. What do you think those secret government-to-government deals are?

The definition of dumping is not too clear, but the US position seems to be selling something for less than you paid for it. That the high price you paid is the result of a stupid subsidy policy is immaterial.