Over 30,000 Tonnes Of Rice To Be Released From State Stockpiles: Thailand

[webfact]

Over 30,000 tonnes of rice to be released from state stockpiles
By Digital Media



BANGKOK, March 16 – More than 30,000 tonnes of rice under the government’s subsidy scheme will be sold to two state enterprises in a move to release accumulating grains from the state’s stockpile.

Commerce Minister Boonsong Teriyapirom said after a meeting of the subcommittee on rice distribution on Friday that 20,000 tonnes of rice will be sold to the Public Warehouse Organisation (PWO) and 10,000 tonnes to the Marketing Organisation for Farmers (MOF) to be packed into bags for sale in the country.

Prices offered by the two organisations were too low, he said, adding they were told to revise and resubmit more suitable pricing at the next meeting.

Friday’s meeting also instructed the PWO to pack Hom Mali (fragrant) rice in five-kg bags for export to China with a total volume of 20,000 tonnes at the price of US$1,100 per tonne, the minister said.

The Commerce Ministry is holding huge stockpiles of rice purchased from farmers at Bt15,000 per tonne under the government's highly-criticised rice pledging scheme. (MCOT online news)


-- TNA 2013-03-16

[aTomsLife]

So the government is selling the rice to two government agencies, thus essentially selling the rice to themselves? Please correct me if I'm mistaken.

[OzMick]

Oh look! We've just sold 30,000 tonnes of rice - to ourselves.

Bugger - too slow.

Edited March 16, 2013 by OzMick

[rubl]

Prices offered for rice to be sold locally were too low and should be adjusted upward. That probably means soon the price in the shops will increase as well, but luckily we have at least 300 Baht a day to spent

[rubl]

Fridays meeting also instructed the PWO to pack Hom Mali (fragrant) rice in five-kg bags for export to China with a total volume of 20,000 tonnes at the price of US$1,100 per tonne, the minister said.

Ah, a G2G deal! US$ 1,100 a tonne is about THB 32,000. With the government paying THB 20,000 for a tonne of Hom Mali they make a profit! Oh boy, I always though Chinese were good in getting deals.

So the government recovers about THB 640,000,000 and the 10,000,000 to 20,000,000 tonne mountain got a wee bit smaller

[OzMick]

Prices offered for rice to be sold locally were too low and should be adjusted upward. That probably means soon the price in the shops will increase as well, but luckily we have at least 300 Baht a day to spent.............

........if we are working. Is the latest crop, or the more "mature" variety we are being offered at non-bargain prices?

[pumpuiman]

So now the answer to their complete bungling is to sell locally, flooding the market in which many farmers (such as my Father in law) rely on for survival. Looks like I will be paying for the governments stupidity...having to support my in-laws when they won't be able to sell their rice.

Wasn't it yesterday that Yingluck announced plans to continue this stupidity?

Amazing Thailand.

[aguy30]

"Fridays meeting also instructed the PWO to pack Hom Mali (fragrant) rice in five-kg bags for export to China with a total volume of 20,000 tonnes at the price of US$1,100 per tonne, the minister said." So they think the Chinese are going to pay $1,100 (32,000 baht) per tonne, almost double the normal outrageous rice scheme (scam) price for Hom Mali?

"20,000 tonnes of rice will be sold to the Public Warehouse Organisation (PWO) and 10,000 tonnes to the Marketing Organisation for Farmers (MOF)" That sound like good way to divert the true loss to other agencies so the rice scheme(scam) doesn't look bad.

Can't help wondering how many pockets will be lined during the "transfers" and sales?

Edited March 16, 2013 by aguy30

[alant]

why is all this excess rice not used to produce ethanol for gasahol?

[Locationthailand]

why is all this excess rice not used to produce ethanol for gasahol?

Because that would be sensible and logical, neither of which are in any tangible quantity in Thailand.

[GentlemanJim]

I do not believe for one nano-second that the chinese will be paying 1100US for a ton of rice. More like "we agree to sell it to you for 400US a ton if you agree to say we are charging you 1100US, we don't mind losing billions of the Thai peoples money, but we can't lose any face".

30K tons from 29 Million tons.....hmmmmm about 0.1% there's a lot of rice left in them thar warehouses!

[rubl]

why is all this excess rice not used to produce ethanol for gasahol?

Because that would be sensible and logical, neither of which are in any tangible quantity in Thailand.

Also the conversion would probably lead to (financial) losses finally showing up in the books. We can't have that, now can we?

[GentlemanJim]

Could be a real boost for production of cheap rice wine though! Keep the population pissed and they wont care what you do.

[LuckyLew]

Prices offered for rice to be sold locally were too low and should be adjusted upward. That probably means soon the price in the shops will increase as well, but luckily we have at least 300 Baht a day to spent

we were suppose to have 300 baht a day to spend

the factory refused to comply with the law

when they were forced to comply

The factory said eff it .... and closed

Now we have no baht a day to spend ...

we sure are poorer and hungrier now

[apetley]

So the two state enterprises were told to bid for the rice. They know what it's really worth and seem to have bid accordingly which is obviously less than that which the govt paid. Raise your bid they are told. So they pay up enough to make it look as though the govt aren't losing on the deal.

Govt buy rice.

State enterprise buys from govt.

State enterprise tries to sell at way over market price.

Is there no end to the madness?

And there's still 28,970,000 tonnes left!

[rubl]

Could be a real boost for production of cheap rice wine though! Keep the population pissed and they wont care what you do.

Rather than buy from the government most upcountry would probably prefer to make their own using secret recepies passed from generation to generation.

Edited March 16, 2013 by rubl

[bigbamboo]

Is this the Thaksinomics we hear so little about these days?

[Robby nz]

I wonder where this rice that is to be sold, once they come up with a better price, will be taken?

"Public Warehouse Association". Is the stored rice not already in warehouses controlled by this association?

Or is it all in private warehouses and the associations are empty?

Could it be that in reality that the rice will only be moved on the books and stay exactly where it is?

Lots of questions on this one

[billd766]

Will the deal be transparent and show the true prices?

I know, I know. It is Saturday afternoon and almost time for my nap.

[MaxLee]

The more you let the rice rot, the more it loses in value.

Thailand, the hub of rotten rice served by Thai-Chinese Mafia...

[Thai-Aust]

Amazing Thailand.

BANNED WORDS! use some other that shows more creativity.

[Judo Chop]

How many kilos of rice a day do you reckon the guy in the photo is pocketing?

[aguy30]

why is all this excess rice not used to produce ethanol for gasahol?

Because that would be sensible and logical, neither of which are in any tangible quantity in Thailand.

Let's see, you are suggesting that this expensive rice (15-20,000 baht/tonne) should be converted into gasohol? OK for the rice that already rotted.

Feed the poor people and sell it at discount, but get on with it before it all rots. Kill the ridiculous rice scheme (scam) now before billions of more baht is wasted on vote buying from the farmers.

Edited March 16, 2013 by aguy30

[dcutman]

They are actually going to release 70,000 tons. The 30k ton mentioned in this article and another 40k tons of old stock (2003-2005) from Thaksins last pledging scam, that the govt payed to much for. Article in the other paper.

This 40,000 ton will be re-milled to make suitable for only animal feed. There was no mention of how much more of this 8 to 10 year old stock there was. But it seems to be an indication of how long this new stock will be sitting around for.

[Pimay1]

They are actually going to release 70,000 tons. The 30k ton mentioned in this article and another 40k tons of old stock (2003-2005) from Thaksins last pledging scam, that the govt payed to much for. Article in the other paper.

This 40,000 ton will be re-milled to make suitable for only animal feed. There was no mention of how much more of this 8 to 10 year old stock there was. But it seems to be an indication of how long this new stock will be sitting around for.

And they say this with a straight face. Absolutely no shame.

[drdoom6996]

Prices offered for rice to be sold locally were too low and should be adjusted upward. That probably means soon the price in the shops will increase as well, but luckily we have at least 300 Baht a day to spent

Can't screw the world with the high price of Thai rice, so lets screw the Thai people instead.

[siampolee]

Reminds of an old friend in the U.K. many years ago who fancied himself as a financial pundit and excelled in playing games with his credit cards using card A to pay Card B card C to pay card D and so on, so as to be refinancing himself via his card system yet again

Right mucking fuddle he got into which resulted in personal bankruptcy.

Must look on the Internet to see if by chance he has become an advisor to the current maladministration and the operation of their current rice pledging scam scheme

[tomross46]

What happened to the rice that was in the warehouses that were flooded? Was it written off and covered by flood insurance? I has seen nothing in the news.

[edwinchester]

Reminds of an old friend in the U.K. many years ago who fancied himself as a financial pundit and excelled in playing games with his credit cards using card A to pay Card B card C to pay card D and so on, so as to be refinancing himself via his card system yet again

Right mucking fuddle he got into which resulted in personal bankruptcy.

Must look on the Internet to see if by chance he has become an advisor to the current maladministration and the operation of their current rice pledging scam scheme

Nah, I think you'll find he's been working for the Yanks for some time.

[Thai at Heart]

If they opened the doors on every rice warehouse that is full to bursting and let the wind flow, 30k tons would blow away.

This is a drop in a very big ocean