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

[twr404]

According to Index Mundi, it looks like the world commodity price for 5 percent broken milled white rice, per Metric Ton for the last three months has been around 17,100 THB. http://www.indexmundi.com/commodities/?commodity=rice&months=60&currency=thb

The article states the Chinese are going to pay about 32,500 THB per ton, almost double the going rate. Please let the Chinese purchasing agents know that I have some condos I would like to sell them.

[animatic]

The cock up continues and now slides into double speak and slight of hand, out of desperation.

[belg]

i bet they might end up into the same stockpile under a new batch or rice, sold at a loss in the end and re-inventoried at full price

this is how you get rich

[waza]

So the government is selling rice to themselves at a loss then , another PTP economic miracle.

[hellodolly]

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.

In other words they are playing with them selves and getting the same result a passing moment of ecstasy and then back to how are they going to sell this line of garbage to the population with an IQ equal to at least the first grade level.

What is the loss on this boon dogle or are they paying them selves more than they paid the farmers there by raising the price they will need to just break even.

[JetsetBkk]

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.

<snip>

how are they going to sell this line of garbage to the population with an IQ equal to at least the first grade level.

<snip>

I think they just did.

[dcutman]

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.

Thailand plans to auction about 92,000 tons of damaged rice for animal

feed, according to the Commerce Ministry, including: about 67,000 tons

of mixed grade rice from the government’s 2008-09 rice mortgage scheme,

which was damaged by disasters, and about 25,000 tons second-grade

fragrant rice and white rice from the 2005-07 rice mortgage scheme.

http://www.oryza.com/content/thailand-auctions-old-rice-previous-mortgage-schemes-animal-feed-%E2%80%93-how-will-thailand-manage

On top of that there is another 40,000 tons of old (2005) rice that will be released in this auction, that the op failed to mention.

Remembering that this rice cost Bt800 a ton a month to store, weather it is new crop or old.

[rubl]

Oh boy, rice from 2005, 2006, 2007, 2008, 2009. We have 2013 now if I remember correctly?

Makes you wonder how much rice degrades in quality after one, two or three years, keeping in mind the very sophisticated Thai storage facilities

[dcutman]

Oh boy, rice from 2005, 2006, 2007, 2008, 2009. We have 2013 now if I remember correctly?

Makes you wonder how much rice degrades in quality after one, two or three years, keeping in mind the very sophisticated Thai storage facilities

Its not only the storage facilities that are still dealing with the old (Thaksin) pledging scam scheme. The BAAC is still holding a bit over $2.1 billion US from that familiar scam scheme. Plus interest of course.

So far, the Government still has an outstanding debt of around 63,232 million baht ($2.1billion) to the BAAC from losses incurred in the previous Paddy Pledging Program during MY2004/05

[Thaddeus]

This is a farce of monumental proportions, Brian Rix would have been proud.

All that needs to happen now is for Chalerm to stumble in with his trousers round his ankles because his belt made from moral fibre has snapped and shouting "the boss is coming for lunch" and Yingluck replying "why didn't you tell me?"

Some never need to know until it's way too late.

[dcutman]

Date:
GAIN Report Number:

Weekly Rice Price Update
Rice Price - Weekly
Thailand
TH2054
5/22/2012

Rice exporters expect that Thai rice exports in May 2012 will maintain its March and April’s average of 0.6 million tons due to parboiled rice exports to Nigeria. Thai exportable rice supplies remain tight as the aggressive Paddy Pledging Program increased total intervention stocks to 11.2 million tons milled equivalent, up 3.7 percent or 0.4 million tons from the previous week. Of these, 2.0 million tons are old-crop intervention stocks, and 9.2 million tons are current MY2011/12 crop.

Edited March 16, 2013 by dcutman

[jbrain]

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

No, that actually means that they don't have a deal yet, and probably also never have if the price offer isn't increased.

[jbrain]

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

And why would the Chinese government be willing to pay double the going market price for this rice ?

[Phatcharanan]

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

Nahhhhhhhhhhhhh.......really?

[Phatcharanan]

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

Nahhhhhhhhhhhhh.......really? You used to have a partner named Watson by any chance?

Edited March 16, 2013 by Phatcharanan

[AleG]

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

And why would the Chinese government be willing to pay double the going market price for this rice ?

It could be just another little white lie:

Rice deals with China fake

The opposition has established a link between the government's rice-pledging scheme and massive money laundering by producing evidence of a dummy company, individuals and old ghosts like President Agri Trading and Siam Indica, which could be found involved in non-existent rice deals.

Or money laundering, or a deal along the lines of "you buy a token amount of overpriced rice so I can save face and you get the contract for the High Speed Train (or whatever other project involving Chinese companies)"

I don't believe for a second that they would but rice at that absurdly inflated price without something fishy going on.

[mancub]

Of course they have to sell it at a high price ...don't forget they've also got these absurd bills to pay .

BANGKOK, 30 January 2013 (NNT)-The Cabinet has approved a budget of 157 million baht to be paid to police officials who are hired to watch for dodgy dealers taking part in the government’s rice pledging scheme....!

..can't wait for April Fools Day ,obviously !

[ratcatcher]

Oh boy, rice from 2005, 2006, 2007, 2008, 2009. We have 2013 now if I remember correctly?

Makes you wonder how much rice degrades in quality after one, two or three years, keeping in mind the very sophisticated Thai storage facilities

I believe the theory is, according to Mr Thaksin , that rice, like some cheese and wine, gets better with age and thus commands a higher price.

[otherstuff1957]

I did a quick google & came up with the following rice prices per ton as of 1 March:

This is for %5 broken rice - the sort of everyday rice you buy in the supermarket. Prices for long-grain rices, like Hom Mali or Basmati, are much higher, with Indian Basmati up around $1000 or $1100 per ton, so the figure quoted for the Chinese purchase is not really out of line.

The supplies of regular rice are the problem. They were purchased for about $100 per ton over the average market rate shown above and, if 10 million or so tons are dumped on the market, prices will fall even further.

However, we need to keep this in perspective. The only real losers here are the Thai taxpayers, most of whom don't vote for PT anyway. For the average rice farmer/taxi driver/factory worker these financial problems are pretty abstract and probably won't effect their lives very much.

[waza]

I did a quick google & came up with the following rice prices per ton as of 1 March:

This is for %5 broken rice - the sort of everyday rice you buy in the supermarket. Prices for long-grain rices, like Hom Mali or Basmati, are much higher, with Indian Basmati up around $1000 or $1100 per ton, so the figure quoted for the Chinese purchase is not really out of line.

The supplies of regular rice are the problem. They were purchased for about $100 per ton over the average market rate shown above and, if 10 million or so tons are dumped on the market, prices will fall even further.

However, we need to keep this in perspective. The only real losers here are the Thai taxpayers, most of whom don't vote for PT anyway. For the average rice farmer/taxi driver/factory worker these financial problems are pretty abstract and probably won't effect their lives very much.

The problem for the rice farmers is that when this scam collapses the price of rice will go into free fall and the silos will be full of old rotting rice. So they will have no buyer of there new season rice, therefore no income to pays off the easy loans and bank cards the government supplied them.

[rubl]

For the average Thai person the price of rice in the shop is not abstract. A government which spends or throws away lots of taxpayers money is also likely to cut other government provided services to limit deficits and have enough of all kinds of other 'useful' projects. IMHO

[tropo]

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

That would be a crime against humanity. Shame on you for even suggesting it. Most likely you've ever been in communities of people with nothing to eat.

[slapout]

When you do the math of storage cost at 800 baht per ton per month and throw in the amount in storage (anywhere from 20 to 30 million tons)to even publish this amount of sales is laughable.

[jbrain]

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

That would be a crime against humanity. Shame on you for even suggesting it. Most likely you've ever been in communities of people with nothing to eat.

Indeed never been in any community like that in Thailand, and I'm sure they also don't exist here.

Of course there are in other parts of the world, but you don't think the Thai government would even remotely consider to give rice for free to hunger striken countries, do you?

[tropo]

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

That would be a crime against humanity. Shame on you for even suggesting it. Most likely you've ever been in communities of people with nothing to eat.

Indeed never been in any community like that in Thailand, and I'm sure they also don't exist here.

Of course there are in other parts of the world, but you don't think the Thai government would even remotely consider to give rice for free to hunger striken countries, do you?

I certainly hope they would rather than turning good eating rice to ethanol. Are you sure that Thailand would not donate to other countries? You could be right - I would hope you're not.

I'll bet there are plenty of communities in Thailand who could use rice. Just because you haven't been to any does not mean they do not exist. I remember people donating rice to an orphanage not too long ago - I donated 5kg myself - it was outside Friendship Supermarket.

If you had been to places where people cannot afford rice to eat you'd understand how objectionable that suggestion was.

Edited March 17, 2013 by tropo

[Ricardo]

I was returning to Chiang Mai from DMK & Bangkok on the bus a couple of days ago, and most of the rice-stores we passed were clearly over-capacity, some with stores in open-sided lean-to with no protection against birds/rats or dust/humidity, and others with trucks dumping the new-harvest onto the drying-pans to be covered with blue-plastic-sheets & tyres round the edges to hold the covers down.

But at least they get their full storage-fees, as though this was in a proper warehouse, protecting the contents against the elements & contamination.

This can't be good for quality, or the knock-on effect on the reputation (such as it is) of Thai rice, and the monsoon-season starts in a couple of months' time ?

Never mind, no doubt other state-owned businesses can be forced to buy the excess-stocks, at above-market-price and financed by more unwanted-loans for the state-owned banks like the BAAC, so that all appears to be well, for a few months more.

And by then the world price will have soared, so that all this unsold-rice can be released for export without depressing the price. The real-PM says so, so it must be true, move along now, nothing wrong or worrying about the situation !

Edited March 20, 2013 by Ricardo

[Skywalker69]

Amazing Thailand.

BANNED WORDS! use some other that shows more creativity.

Will "Fantastic Siam" do?

[MaxLee]

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

That would be a crime against humanity. Shame on you for even suggesting it. Most likely you've ever been in communities of people with nothing to eat.

It's an even greater crime to let your own people, in this case, the people of Thailand and the farang living in Thailand, eat the rotten rice and let them suffer from daily diarrhea and intestine destruction that can possibly lead to death... Edited March 20, 2013 by MaxLee

[Skywalker69]

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

Bugger - too slow.

Will give G2G a totally new meaning.

[jbrain]

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

That would be a crime against humanity. Shame on you for even suggesting it. Most likely you've ever been in communities of people with nothing to eat.

Indeed never been in any community like that in Thailand, and I'm sure they also don't exist here.

Of course there are in other parts of the world, but you don't think the Thai government would even remotely consider to give rice for free to hunger striken countries, do you?

I certainly hope they would rather than turning good eating rice to ethanol. Are you sure that Thailand would not donate to other countries? You could be right - I would hope you're not.

Did you notice the tiny amount they donated to help the Japanese, which invest billions in Thailand, to help them out with their Tsunami disaster ?

Doesn't leave much hope for countries that don't enrich Thailand.