Thailand To Rent Additional Storage Facilities As Rice Warehouses Fill Up

[dcutman]

If they would mill the paddy they are storing, the storage needed decreases by 30%. As storage is based on weight, payment is being made for at least 30% more than what can be sold as eatable rice.

This is headed to the biggest boon doggle since the swamp was converted to an airport, and some of the same people are in charge of both operations/scams.

As they have had a year to steal what ihas been paid for and storage costs, transport, milling, etc, send an inventory crew around and the amount of empty storage space may be enough for this years crop.

They do mill it. The pledged rice must be milled within 7 days of delivery. Cant give you the link, but that info was in a story in the BP the other day.

[Crushdepth]

Where *are* the government apologists? Come on, where are you, this spectacular piece of stupidity requires explaining away. What is the explanation for this failed policy?

I could use a laugh, so let's have it

[philw]

Where *are* the government apologists? Come on, where are you, this spectacular piece of stupidity requires explaining away. What is the explanation for this failed policy?

I could use a laugh, so let's have it

555

[moe666]

On a road trip recently near the town of Long, near Phare, there was a line of pickups over a kilometer long waiting to sale there rice at a millers. Alot of rice was on the ground being moved about by a frontend loader.

[Nisa]

Interesting article ...

Thai government continues rice business as unusual

http://www.gmanetwor...ness-as-unusual

Although the article is informative and interesting a couple quick take aways ....

The government budgeted over $2.5 Billion for this subsidy to farmers just for last year.

Thailand now has more than 12 million tons of stockpiled rice, about a fifth more than the most it has ever exported in a year.

The Government is paying a premium of 33% more than the actual cost of rice to farmers and this works out to being more than 80% more than Vietnam rice. So when it comes to exports it would seem this scheme has greatly added to what already was a serious problem.

Edited January 18, 2013 by Nisa

[notmyself]

Interesting article ...

Thai government continues rice business as unusual

http://www.gmanetwor...ness-as-unusual

Although the article is informative and interesting a couple quick take aways ....

The government budgeted over $2.5 Billion for this subsidy to farmers just for last year.

Thailand now has more than 12 million tons of stockpiled rice, about a fifth more than the most it has ever exported in a year.

The Government is paying a premium of 33% more than the actual cost of rice to farmers and this works out to being more than 80% more than Vietnam rice. So when it comes to exports it would seem this scheme has greatly added to what already was a serious problem.

That is about right. Thailand is going to have to either throw away the rice or dump it on the world market resulting on the WTO taking them to the cleaners. Best case is to give free rice to everyone in Thailand which the WTO will not be happy about but can live with it. Whatever happens, this rice 'thing' is going to cost Thailand big time and I predict it wall happen late Fab when the next crop feeds in.... Unless another nation is willing to lend them the money but that would be foolish to say the least. China would do it on the understanding that they would own Thailand which seems unlikely (?) The bounce in the Baht over the last week is the eye before the storm so batten down the hatches guys and gals, this year is going to swing.

Edited January 18, 2013 by notmyself

[rubl]

"Thailand To Rent Additional Storage Facilities As Rice Warehouses Fill Up"

2013-01-21

Baht at 29.74,near 17-mth high amid speculation BoT may intervene as strong baht hurts exports

Sometimes 'river deep', sometimes 'mountain high'. Soon government campaign 'Thai eat rice'

[Ricardo]

Just to point out that, if those several-million-tons of alleged/unproven government-to-government rice-export deals were priced (as seems likely) in anything other than Thai Baht, then the stronger the Baht gets, the higher the losses to-be-booked if/when the deals actually take place & payment comes in.

Because the rice is bought from the millers/poor-farmers in Baht.

My crystal-ball foresees a supplementary-budget being needed, to cover the ever-higher cost to the public-purse, of this scam scheme.

Or perhaps a further bond-issue, at attractively-high interest rates, which will pull-in ever-more overseas money, and strengthen the Baht yet further ?

Doh !

Edited January 22, 2013 by Ricardo

[RubbaJohnny]

Firstly as former proff and only 3 degrees I must admit my naivety ,ignorance hence I am here in search of guidance and illumination from the finest minds logged iin.

As I understand it it must take less space,insurance and effort to store cash than goods.

Why not sell the rice and have the cashflow now.

I realize this may remove bankers ,middlemen,wasteful storage etc

Only a scheme designed to manipulate price,benefit intermediaries and enhance corruption....oh wait a mo I'm begining to get it

Please store these thoughts at amplecounterintuitive/cloud until the regime concurs

Edited January 22, 2013 by RubbaJohnny

[pedro01]

Firstly as former proff and only 3 degrees I must admit my naivety ,ignorance hence I am here in search of guidance and illumination from the finest minds logged iin.

As I understand it it must take less space,insurance and effort to store cash than goods.

Why not sell the rice and have the cashflow now.

I realize this may remove bankers ,middlemen,wasteful storage etc

Only a scheme designed to manipulate price,benefit intermediaries and enhance corruption....oh wait a mo I'm begining to get it

Please store these thoughts at amplecounterintuitive/cloud until the regime concurs

WTO dumping regulations prevent a government from selling commodities at a lower price than it paid.

It's to prevent them subsidising industries and giving industries in a specific country an unfair advantage.

That's my understanding but then again I have no degree.

Edited January 22, 2013 by pedro01

[Crushdepth]

Today: Thai rice exports fall to 12 year low (a 37% decrease). Go "Economic Dream Team". Keep up the good work!

[Ricardo]

Today: Thai rice exports fall to 12 year low (a 37% decrease). Go "Economic Dream Team". Keep up the good work!

But it's all the foreigners' fault, for not appreciating how lucky they are, to have the opportunity to buy year-old Thai-rice at a substantial-premium to world market-prices, they must not understand how Thaksinomics is supposed to work !

Those consumers will be really disappointed, when they get equally-good or fresher rice, at a lower price in their supermarkets, and find that the packaging doesn't have "A product of Thailand" printed on it ! Erm ... that's right, isn't it ?

[p_brownstone]

Overheard a conversation in a top restaurant the other day between 2 people involved in the Rice trade in Thailand.

Apparently a mixture of Indonesian and Cambodian Rice is now being sold as "Thai Jasmine Rice" - so the image of that premium Thai Product will soon be seriously damaged.

Patrick

I love the way Thais rave about their beloved Jasmine rice, yet, whenever we eat out, the rice is bland white rice, same as most of the population eats. Never eat it at home, much prefer the brown rice or that grown in the hills.