SPECIAL REPORT

Pledging policy sees UK importers shun Thai rice

PETCHANET PRATRUANGKRAI

THE NATION

London

LONDON: -- Even sending 100 trade missions overseas to promote Thai rice will not succeed in expanding exports, as the government's price subsidy has undermined the commodity's competitiveness abroad and handicapped it against rival countries, Thai exporters and UK importers say.

"The rice pledging measure is a bad policy. Imports of Thai rice to the UK have dropped this year due to the price gap between rice from Thailand and other countries. Once British consumers become familiar with other rice, Thailand will not easily get back to the UK," a UK rice importer warned last week.

The Yingluck government recently dispatched a mission led by Thai Trade Representative Olarn Chaipravat to the United Kingdom to promote trade, including in Thai rice.

In a meeting of the Thai government, Thai rice exporters and UK importers, the importers urged the Thai government to review its price intervention policy, pointing out that it has ruined Thai rice exports to the UK.

One of the UK importers said his country now buys rice from Uruguay, Vietnam, India and other countries. In particular, imports of Thai white rice are falling.

According to the International Trade Promotion Department, India is the major rice supplier to the UK, which has a large Indian community. The UK imports an average of 600,000 tonnes of rice per year, of which brown or husked rice accounts for 43.45 per cent, white rice and jasmine rice for 43.03 per cent and broken rice for 11.11 per cent.

During the first half of this year, rice supplied by India grew 43.35 per cent to 99,766 tonnes, followed by Spain, which jumped by 30.08 per cent to 55,224 tonnes, but Pakistan slid by 54.16 per cent to 21,987 tonnes.

Thailand is the fourth largest rice supplier to the UK, but the volume plunged by 53.07 per cent to 14,693 tonnes during the first half of this year.

The UK importers called on the Thai government to reconsider whether to continue any farm subsidy programmes, as they will erode Thailand's export competitiveness in the long run.

"Thai rice is too expensive compared with its rivals such as Vietnam, but going further with the policy of the Thai government will shrink export volume," the source said.

A Thai rice exporter who joined the mission stressed that his company has not seen an opportunity to export more rice not only to the UK but also to other countries due to the unattractive price of Thai rice.

Although he tried to explain, Olarn could not convince the UK importers. He said his government will focus more on exporting higher value-added organic rice. The UK importers said that only a small quantity of such rice was needed and Thailand will certainly lose a big market to other rice traders as the biggest demand is for white rice.

Somkiat Makcayathorn, president of the Thai Rice Packers Association, said the government's price intervention policy is not a good measure to help farmers in the long run. It should concentrate on market demand and cost competitiveness. Consumers around the globe prefer white rice and sales through modern trade outlets. The government should not focus only on the high-end market, as the market for white rice is much different.

About 30 million tonnes of rice are traded worldwide each year, of which more than 80 per cent is white rice.

Vuttiphon Wanglee, managing director of Chaithip Rice, said the government should create better promotion channels and an export strategy for Thai rice. The government can help farmers but it should also come up with export promotion plans to encourage their production.

-- The Nation 2012-11- 26

I'm sure the PTP government has it's fingers pressed firmly in its ears

I demand an IQ test for all politicians. Anyone falling under the national average (91) has resign.

This is what inevitably happens when you start meddling in free markets. You distort the market, the market bends back.

It's called The Law of Unintended Consequences and can be seen all over the globe where governments start interfering in areas which they know nothing about and which are none of their business.

The UK doesn't seem to understand the Shinawatra clan's business genius. I'm sure after the Thai rice has been wallowing in leaky weevil and rat infested warehouses for a few years the UK will have realized their mistake and be queuing up to buy. Or alternatively just continue to buy Indian and Vietnamese rice at market price levels.

And the market, built up over centuries, withers due to the lunacy of an unelected fugitive

I demand an IQ test for all politicians. Anyone falling under the national average (91) has resign.

The politicians don't do this because they are stupid. They do it because they are making bank from it. It is the taxpayer that foots the bill, and we all know the position of the Shinawatra clan on paying taxes. They know that this policy is a disaster for the nation, they just don't care.

" Although he tried to explain, Olarn could convince the UK importers"

Thats because we can spot a liar and bullshitter from miles away!

Through the Thaksin clan Thailand is firmly on the road to bankrutcy.

Well this is no real surprise, the Thai government is very effectively pricing Thailand out of the global rice market, this country will end up with huge stockpiles of rotten rice that will only be fit for consumption by rats.

Thaksin said the rice scheme is a good idea, so it must be a good idea

Wink wink nudge nudge ...

And the market, built up over centuries, withers due to the lunacy of an unelected fugitive

And the trade delegation - did they get to do fun fairs, shopping, take 40 of them, stay at five star hotels, take their daughters? And as per the other posts, all this because an unelected conman and convicted criminal is pulling Thailand's purse strings and scamming as much as he can, and being allowed to do it.

In the words of the Bishop of Canterbury in 1162 regarding Thomas Becket... "Will no one rid me of this man..." Take Thaksin out (of the equation) and Thailand may just get back to normal.

Thaksin thinks, PTP does.

Why isn't passing Economics 101 a prerequisite for public office at any level in any government in the world?

Simple economics, which is why the average citizen of the United Kingdom is far more prosperous than their counterpart in Thailand, it's because they elect (mostly) honest leaders who make sound decisions based on education, the Thai rice is too expensive, end of story. No sketchy G-to-G deals, or bribe offers who price manipulation schemes...

Thailand is the fourth largest rice supplier to the UK, but the volume plunged by 53.07 per cent during the first half of this year.

When Arthur points out the Black Knight's Thai Commerce Minister's injuries, the Knight Minister insists,

"It's just a flesh wound!"

Black Knight (Monty Python)

http://en.wikipedia...._(Monty_Python)

.

If only Thaksin would let the doubters have a glance into his crystal ball so that they could understand what he has seen. Thailand will suffer for two years then all will come good.

The scary thing is so many are believing he can predict the future.

So you mean the British did accept the bribe ?

Vuttiphon Wanglee, managing director of Chaithip Rice, said the government should create better promotion channels and an export strategy for Thai rice. The government can help farmers but it should also come up with export promotion plans to encourage their production.

This just proves that no one gets or understands the problem. export promotion plans are not the answer. Thais seem to think that the rest of the world is an endless pot of gold to be continually mined. The harsh reality is that the pot of gold has been used up and increasingly the once affluent west is looking for value, as opposed to quality, which is the same denominator that most developing countries when they seek supplies to feed their populations.

The only people that seek quality are the so called elites, those with cash in abundance and whilst the number of millionaries has increased in recent history, so too and to a far greater degree has the level of poverty. Only a person who life is so out of touch with the daily reality for billions of people world wide would think that stockpiling 'high quality' rice to be sold at a higher market value would be a practical and effective use of money. And i'd bet my bottom dollar that the reason they think that its an effective use of money is because they have money to burn and assume everyone else does too.

So you can promote this until the cows come home, it won't make a blind bit of difference because no one will buy in the bulk required to make this project cash effective because it's just too expensive and the money spent buying it will not feed the required quote of mouths

Basically, they're asking rice importers to subsidise the current govt's vote buying scheme.

And they wonder why they're not going for it. They're finding out the hard way that not everyone is as gullible as their voters. Their voters, in turn will (possibly) realize what's going on, at least within a year or so. Ho hum.

Although he tried to explain, [Thai Trade Representative] Olarn could not convince the UK importers.

Well that's a surprise.

Although he tried to explain, [Thai Trade Representative] Olarn could not convince the UK importers.

Well that's a surprise.

Some Govt's have intelligent people...

Although he tried to explain, [Thai Trade Representative] Olarn could not convince the UK importers.

Well that's a surprise.

Some Govt's have intelligent people...

Unfortunately not this one

Ha, give the thais a gun and a foot and the outcome is inevitable

Unbelievable......

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It's the same mind set they have over the "high season". We aren't getting customers, but put the price up anyway .

Hey...It's the west. Most of the consumers don't know the difference between "superior" rice and "average" rice. What they do know is the price of rice. So, they will buy what is the most affordable, no matter how much Thailand tries to promote their overpriced product.

maybe yingluk can call her friend David

all jokes asside. Isn't it common in thailand as customers fade to put prices up - that's what they do in pattaya and not long after the said business is shutters down for good

I honestly believe Thaksin is trying to ruin this country, he may also have found a way to use the rice scheme to siphon money into his own pocket through bogus accounts, if so he will continue to get away with it until there is a full scale fiscal review which this government refuses to do

Hey...It's the west. Most of the consumers don't know the difference between "superior" rice and "average" rice. What they do know is the price of rice. So, they will buy what is the most affordable, no matter how much Thailand tries to promote their overpriced product.

Rice in the UK for a lot of consumers is branded products at massive mark up prices like "Uncle Bens" a small box of boil in a bag will cost over a quid, only the comercial market knows how to buy rice - by the large bag load

Hey...It's the west. Most of the consumers don't know the difference between "superior" rice and "average" rice. What they do know is the price of rice. So, they will buy what is the most affordable, no matter how much Thailand tries to promote their overpriced product.

Rice in the UK for a lot of consumers is branded products at massive mark up prices like "Uncle Bens" a small box of boil in a bag will cost over a quid, only the comercial market knows how to buy rice - by the large bag load

Well they have shareholders and owners to answer to, so bailing out the Thai government isn't part of their business strategy.

Most rice buyers in the UK will be from the Indian subcontinent. Which rice do the Thais think these people will go for?

maybe yingluk can call her friend David

all jokes asside. Isn't it common in thailand as customers fade to put prices up - that's what they do in pattaya and not long after the said business is shutters down for good

I honestly believe Thaksin is trying to ruin this country, he may also have found a way to use the rice scheme to siphon money into his own pocket through bogus accounts, if so he will continue to get away with it until there is a full scale fiscal review which this government refuses to do

I tend to agree with you. I think Thaksin is so bitter about his money being seized and loosing face he is hell bent on ruining the entire country. Kind of like "if I can't have it then you can't either". The difference is that he is recovering it bit by bit through Yingluck and the cronies.