Thailand to rent additional storage facilities as rice warehouses fill up

BY APORNRATH PHOONPHONGPHIPHAT

BANGKOK — THAILAND, struggling to find storage for a rice buying scheme that cost the country its crown as the world’s biggest exporter of the grain, will rent private warehouses to store next month’s harvest, government officials said on Wednesday.

Thailand’s rice millers had warned that collection might have to stop for lack of storage space, as the country expects to produce about 8-million to 10-million tons of paddy rice in the February harvest, or about 5-million to 7-million tons once husked.

That is in addition to government purchases of up to 20-million tons of milled rice in an intervention scheme kicked off in October 2011 aimed at helping farmers by paying prices above the market rate.

"There’s no problem at all and we can rent more private warehouses to store rice," said Boonsong Siam Land, one of the leading rice exporters in Thailand. "However, we would need a few days or a week to check them out, and clean them up to make them suitable for storing rice," the company said.

The government will rent an [more...]

Full story: http://www.bdlive.co...ehouses-fill-up

-- BDlive 2013-01-17

Thailand the hub of rice storage, not export

Will this glut mean cheap rice in Thailand this year?

Better keep an eye on the sell by dates though.

Will this glut mean cheap rice in Thailand this year?

Better keep an eye on the sell by dates though.

At some point, yes - there will be a crash in the rice market because of this, barring a massive shortage elsewhere.

Of course, the rice could disappear or rot. Stranger things have occured here.

8-million to 10-million tons of paddy rice in the February harvest, or about 5-million to 7-million tons once husked

The massive spread on the predictions shows that they are gearing up for something shonky. They have been producing rice in Thailand for eons. They know the rainfall, and they know who and where it is grown, and yet they are giving predictions of 20>25% spread.

The insanity marches on. The government now seems to minus billions of baht, I would love to know where it went.

But of course we never will, unless we get a new non - Thaksin government, and then there will an investigation.

Why oh why couldn't Thaksin just have stuck to standard corruption, and not destroyed one of the corner stones

of the Thai economy ??? They must be laughing their asses off in Vietnam.......

QUOTE

"There’s no problem at all and we can rent more private warehouses to store rice," said Boonsong Siam Land"

In other words they are going to stick to there buy high wait and sell low if at all salable policy.

8-million to 10-million tons of paddy rice in the February harvest, or about 5-million to 7-million tons once husked

The massive spread on the predictions shows that they are gearing up for something shonky. They have been producing rice in Thailand for eons. They know the rainfall, and they know who and where it is grown, and yet they are giving predictions of 20>25% spread.

3 million tonnes of husks?

Lost for words

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

I'm pretty new to all this so there's a question I was wondering about. How long can you keep rice before using it. I realise it may depend on the standard of rice and storage facilities. It might also be a case of quality and potential price declining whilst still being edible.

We grow rice on our land for our own use so I could ask my gf but since it's all used before the next crop I doubt she would know. What she does seem to know is that there is considerable doubt as to whether the farmers are getting the benefit or not.

There's also these government to government deals we keep hearing about. Bearing in mind that 'white lies' are acceptable within the government there appears to be doubt concerning these as well.

Edited January 17, 201313 yr by kimamey

Apparently Yinluck had the same kind of dreams the pharaoh had in the Book of Genesis. The question is who played Joseph..

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

Interesting point regarding the rice husks. I'll need a bit of time to think about that so if you could store the husks somewhere I'll get back to you.

As for the hanger for the rice you may find that as well as having storage space you may need something else as well. Special friends.

8-million to 10-million tons of paddy rice in the February harvest, or about 5-million to 7-million tons once husked

Rice, damned rice, and statistics.

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

Apparently, rice husks make good filler for bricks or construction material. But, whoops, that would screw up the cement market. Also used for Biomass for boilers, but then, that would mess up PTT gas business. Oh, what to do with this stuff without messing up someone's market.....

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

Apparently, rice husks make good filler for bricks or construction material. But, whoops, that would screw up the cement market. Also used for Biomass for boilers, but then, that would mess up PTT gas business. Oh, what to do with this stuff without messing up someone's market.....

LCM. I have the solution

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

Google says that white rice will last 4-5years.

Although it says Jasmine rice can last indefinitely if stored correctly.

So, assuming the Thai Government can keep building or finding warehouses, this could go on for many years making several people very rich in the process.

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

Apparently, rice husks make good filler for bricks or construction material. But, whoops, that would screw up the cement market. Also used for Biomass for boilers, but then, that would mess up PTT gas business. Oh, what to do with this stuff without messing up someone's market.....

Pay someone to dispose of it?

Google says that white rice will last 4-5years.

Although it says Jasmine rice can last indefinitely if stored correctly.

So, assuming the Thai Government can keep building or finding warehouses, this could go on for many years making several people very rich in the process.

I would assume that a temperature and humidity controlled environment would be a necessity and that insects and vermin would be kept out?

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

Google says that white rice will last 4-5years.

Although it says Jasmine rice can last indefinitely if stored correctly.

So, assuming the Thai Government can keep building or finding warehouses, this could go on for many years making several people very rich in the process.

I would assume that a temperature and humidity controlled environment would be a necessity and that insects and vermin would be kept out?

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

I predict roaring sales in fumigation materials (aluminium phosphide), plastic sheeting, gas masks and gas detectors. Oh, to have a pest control company. They will have to be cleaning these places daily, 24/7, so expect a roaring trade in grass sweeping brushes. Weevils will go into overdrive. Just wait for the temperatures and humidity to go up in a couple of months.

As for climate controlled. Warehouses this big? Silos can do it, but not for storage for years and years.

Jasmine rice is famous for its aroma, so unless it is vacuum sealed, over quite a short period the aroma reduces.

Edited January 17, 201313 yr by Thai at Heart

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

Apparently, rice husks make good filler for bricks or construction material. But, whoops, that would screw up the cement market. Also used for Biomass for boilers, but then, that would mess up PTT gas business. Oh, what to do with this stuff without messing up someone's market.....

How about brewing rice wine and having a huge party as the ship sinks.

It's at times like this I wish I had a large hangar at my disposal..........and also, a way of utilizing 3 million tones of rice husks

Apparently, rice husks make good filler for bricks or construction material. But, whoops, that would screw up the cement market. Also used for Biomass for boilers, but then, that would mess up PTT gas business. Oh, what to do with this stuff without messing up someone's market.....

How about brewing rice wine and having a huge party as the ship sinks.

Rice beer?

Chicken feed

Rat farm?

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

Google says that white rice will last 4-5years.

Although it says Jasmine rice can last indefinitely if stored correctly.

So, assuming the Thai Government can keep building or finding warehouses, this could go on for many years making several people very rich in the process.

I would assume that a temperature and humidity controlled environment would be a necessity and that insects and vermin would be kept out?

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

And there lies the problem. All the storage warehouses locally, including those built specifically for this scheme, are not temperature or humidity controlled. They are vermin infested and during the rainy season damp too.

The problem with socialism is that you eventually run out of other people's money. For the present farmers are grinning given political difficulty in phasing out the rice subsidies introduced by Thaksin.

Consumers will always be grinning with cheap imported rice on supermarket shelves offering lots of choices.

The only person hit from Day One is the Thai tax-payer. Carrying the can for E.U.style farm subsidies (for rice) which reward farmers for growing rice to store in warehouses until it ages & rots. Sadly, for the farmers reckoning must come even if the can is kicked down the road. The free market & free trade punish non-performers.

Thailand needs leaders whose brain goes all the way to the spine.

This will be like the the assets repossessed by the banks after 1999. Most are still available for purchase but the problem is that the banks want not only their original loan back but interest as well; interest now exceeds the original value of the loan so the asset will sit in perpetuity gaining interest each year.

The only way out for the government will be to manipulate the markets and you can only do that by controlling supply. Problem here is of course other countries keep on growing more rice.

Reminds me of those American bros (I forget the name) who tried to corner the silver markets some years ago.

They came unstuck too.

Google says that white rice will last 4-5years.

Although it says Jasmine rice can last indefinitely if stored correctly.

So, assuming the Thai Government can keep building or finding warehouses, this could go on for many years making several people very rich in the process.

I would assume that a temperature and humidity controlled environment would be a necessity and that insects and vermin would be kept out?

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

One source says that rice has a shelf life of 1-30 years, depending on variety, oxygen levels, humidity and temperature. I would imagine that, in warehouses with 30+ C temperatures and 80-90% humidity not to mention an abundance of veevils, as usually found in Thailand, the useful life of the rice would be very near the low end of that range.

7 million tones sold in GtoG deals and dozens of warehouses of new rice to be sold, it's all looking rosy.

8-million to 10-million tons of paddy rice in the February harvest, or about 5-million to 7-million tons once husked

The massive spread on the predictions shows that they are gearing up for something shonky. They have been producing rice in Thailand for eons. They know the rainfall, and they know who and where it is grown, and yet they are giving predictions of 20>25% spread.

3 million tonnes of husks?

Lost for words

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

Its just shoddy writing, what they should have said is that the enormous weight difference isn't because of the HUSKS, its because paddy rice holds more water weight, but when its dried and the husk is removed, the weight drops significantly.

8-million to 10-million tons of paddy rice in the February harvest, or about 5-million to 7-million tons once husked

The massive spread on the predictions shows that they are gearing up for something shonky. They have been producing rice in Thailand for eons. They know the rainfall, and they know who and where it is grown, and yet they are giving predictions of 20>25% spread.

3 million tonnes of husks?

Lost for words

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

Its just shoddy writing, what they should have said is that the enormous weight difference isn't because of the HUSKS, its because paddy rice holds more water weight, but when its dried and the husk is removed, the weight drops significantly.

In an ideal milling process this will result in the following fractions: 20% husk, 8-12% bran depending on the milling degree and 68-72% milled rice or white rice depending on the variety

http://www.knowledge...hp/rice-milling

So 30% processing loss, if you throw in the bran too. Of course, there is excess moisture to fill in too, so all in all, as an outsider, it can appear complicated to know the final yield, but believe me, the processors know it to the 0.5%, but when there is loss like this, diddling the numbers to a couple of percent one way or the other on what you pay the farmer, can be worth an awful lot of money.

Edited January 17, 201313 yr by Thai at Heart

"There is no problem at all"

Don't panic, Captain Mannering Sir !

but, since there are all those lovely unconfirmed government-to-government deals, why will ever more storage-space be required ?

Edit to add : The source quoted in the OP says, the ministry have (purely coincidentally ?) stopped publishing shipment data, and the export-traders say that they haven't seen the sort of volume moving through the port, that the government claims to have sold. Funny that !

Edited January 17, 201313 yr by Ricardo

If they rent silos in Cambodia would that count as exports? Probably need security guards to stop recycling back to Thailand.