Thailand Sees Continuing Decline In Rice Exports

[webfact]

Thailand sees continuing decline in rice exports
By Digital Media



BANGKOK, Mar 22 – Thailand’s rice exports in the first two months of this year dropped both in volume and value, the Rice Exporters Association reported today.

It said Thailand exported 10.5 million tonnes of rice at a total value of Bt22.361 billion in January and February, a decrease in volume and value by 0.9 per cent and 0.6 per cent respectively compared to the corresponding period of last year.

Five top importers of Thai rice were Iraq (168,337 tonnes), Benin (114,654 tonnes), the US (66,011 tonnes), South Africa (56,198 tonnes) and Congo (55,454 tonnes).

Exports of white and Hom Mali (jasmine) rice in February slid down 17 per cent compared to January while exports of boiled rice to Benin increased in February – a contrast to a sharp drop to Nigeria due to the country’s increase of import tax on rice to 110 per cent and offers of cheaper boiled rice from other exporting countries.

The association said Thailand has been losing its competitiveness in the global rice market since its price is US$120-180/tonne higher than other exporting countries.

Thailand is losing its market to competitors like Vietnam, India and Pakistan, it said, adding that Vietnam has sold its five per cent white rice at US$395-405/tonne – the lowest in the global market – while India and Pakistan offered at US$440-450/tonne (FOB) and US$430-440/tonne respectively.

Thailand exports 5 per cent white rice at US$573/tonne (FOB).

The association predicted Thailand’s export volume at only 500,000 tonnes this month due to oversupply and Vietnam’s release of a large volume in the market.

Exports of Hom Mali rice to the US and Asian countries like Hong Kong and China will continue though at a minimal volume, the association said. (MCOT online news)


-- TNA 2013-03-22

[Pib]

Let's see...is there more votes possible from the Rice Exporters Assn or the rice farmers?

Correct answer: rice framers. Therefore, the current rice price guarantee scheme remains a big success.

Note: answer taken from govt handbook on how to respond to negative news reports.

[rubl]

I wonder if these figures have been mangled somewhat. I vaguely remember Thailand exporting 6.9 million tonnes in 2012 and now we have a decline with 'only' 10.5 million tonnes in two months ?

[Thai at Heart]

I wonder if these figures have been mangled somewhat. I vaguely remember Thailand exporting 6.9 million tonnes in 2012 and now we have a decline with 'only' 10.5 million tonnes in two months ?

Indeed, if the numbers are this bad, lets throw a party.

And at these prices, if the reduction is

"0.9 per cent and 0.6 per cent"

in value and volume, this would suggest that the rice subsidy system has been a roaring success. So, there has to be something completely screwy with the numbers.

[billd766]

What I cannot understand is why these countries, Iraq (168,337 tonnes), Benin (114,654 tonnes), the US (66,011 tonnes), South Africa (56,198 tonnes) and Congo (55,454 tonnes). would pay US$120-180/tonne higher than if they had bought from Vietnam, India and Pakistan.

That is assuming that they actually DID pay the higher price.

Well that has supposedly got rid of 460,654 tonnes leaving only 17,500,000 tonnes to go from last years rice.

Go PTP Go

[waza]

The government is releasing so much propagander on the issue of the rice scam its hard to get details, but generally its an expensive excersize that will have a dramatic effect on all involved

[waza]

What I cannot understand is why these countries, Iraq (168,337 tonnes), Benin (114,654 tonnes), the US (66,011 tonnes), South Africa (56,198 tonnes) and Congo (55,454 tonnes). would pay US$120-180/tonne higher than if they had bought from Vietnam, India and Pakistan.

That is assuming that they actually DID pay the higher price.

Well that has supposedly got rid of 460,654 tonnes leaving only 17,500,000 tonnes to go from last years rice.

Go PTP Go

I think you will find the answer in this sentence.............

"a decrease in volume and value by 0.9 per cent and 0.6 per cent respectively compared to the corresponding period of last year."

[pedro01]

This makes no sense at all.

"It said Thailand exported 10.5 million tonnes of rice at a total value of Bt22.361 billion in January and February, a decrease in volume and value by 0.9 per cent and 0.6 per cent respectively compared to the corresponding period of last year.

Five top importers of Thai rice were Iraq (168,337 tonnes), Benin (114,654 tonnes), the US (66,011 tonnes), South Africa (56,198 tonnes) and Congo (55,454 tonnes)."

They exported 10.5 million tonnes of rice in 2 months?

But those top exporters all add up to 454,654 tonnes. So another 10 million tonnes went to other countries but less than 55k each?

So 10 million / 55k = another 180 or so countries? All paying over the odds?

In terms of revenue, if we use the US Billion...

22,361,000,000 Baht in revenue

10,500,000 Tonnes of rice

= 2,000 Baht per tonne?

I presume these are just funky numbers from the article. Don't these journalists ever do any rudimentary checking.

Now, if it's 1.5 million tonnes & 20,000 Baht per tonne, it makes more sense I guess.

[nevets]

If you are selling rice at $120-$180 tonne higher than any other country there must be a loss and you will go broke as no one will be buying your rice as it is a to higher price.

[davejones]

People don't always buy the cheapest. Maybe some people can buy for a higher price and still make money. When I had a business back in the UK, I bought from suppliers that I considered reliable and trustworthy. I wouldn't have changed to a another supplier just because they were cheaper. Thais abroad probably prefer to buy Thai rice, even if it is more expensive. So lots of reasons why they can still sell at a higher price. But I think the whole scheme is flawed.

[Nickymaster]

It could be me but this whole story doesn't make any sense.

It's like a cut and paste article.

[ramrod711]

The association said Thailand has been losing its competitiveness in the global rice market since its price is US$120-180/tonne higher than other exporting countries.

The rice pledging scheme is working to perfection, remember, when you are doing the math you have to factor in 30% corruption.

[jonclark]

This makes no sense at all.

"It said Thailand exported 10.5 million tonnes of rice at a total value of Bt22.361 billion in January and February, a decrease in volume and value by 0.9 per cent and 0.6 per cent respectively compared to the corresponding period of last year.

Five top importers of Thai rice were Iraq (168,337 tonnes), Benin (114,654 tonnes), the US (66,011 tonnes), South Africa (56,198 tonnes) and Congo (55,454 tonnes)."

They exported 10.5 million tonnes of rice in 2 months?

But those top exporters all add up to 454,654 tonnes. So another 10 million tonnes went to other countries but less than 55k each?

So 10 million / 55k = another 180 or so countries? All paying over the odds?

In terms of revenue, if we use the US Billion...

22,361,000,000 Baht in revenue

10,500,000 Tonnes of rice

= 2,000 Baht per tonne?

I presume these are just funky numbers from the article. Don't these journalists ever do any rudimentary checking.

Now, if it's 1.5 million tonnes & 20,000 Baht per tonne, it makes more sense I guess.

Totally agree these numbers are about as useful as an ashtray on a motorbike.

Top five exporters took 460'000 tonnes leaving 10 million for the rest of the world????

[jonclark]

People don't always buy the cheapest. Maybe some people can buy for a higher price and still make money. When I had a business back in the UK, I bought from suppliers that I considered reliable and trustworthy. I wouldn't have changed to a another supplier just because they were cheaper. Thais abroad probably prefer to buy Thai rice, even if it is more expensive. So lots of reasons why they can still sell at a higher price. But I think the whole scheme is flawed.

Wonder when Thais in Thailand will start buying Indian rice or Vietnamese rice as its cheaper

Hang on perhaps they already do...it's just marketed as Thai rice...hmmmm buy foreign rice cheap, sell it in Thailand as Thai rice, get the pledge price for homegrown rice which sits in a warehouse and make a stonking profit .....now that's a nice scam for the rice merchants!!

And lets be honest who can blame them. Importing rice isn't illegal is it?

Edited March 22, 2013 by jonclark

[DLock]

People don't always buy the cheapest. Maybe some people can buy for a higher price and still make money. When I had a business back in the UK, I bought from suppliers that I considered reliable and trustworthy. I wouldn't have changed to a another supplier just because they were cheaper. Thais abroad probably prefer to buy Thai rice, even if it is more expensive. So lots of reasons why they can still sell at a higher price. But I think the whole scheme is flawed.

Besides the US, I doubt that there is significant Thai population in Iraq, Benin, South Africa and the Congo to make your idea valid.

However, if you look a little closer at what those countries may have to "trade" for this rice, it may make more sense why these countries are prepared to "pay" $180 per tone in value more than rice from other countries.

The numbers are bunk anyway. I'd say a decimal point jumped a place and the number is 1.05million tons and not 10.5million...

[LuckyLew]

Does not really matter as friends and family made lots of money

[Tatsujin]

its price is US$120-180/tonne higher than other exporting countries . . .

... a decrease in volume and value by 0.9 per cent and 0.6 per cent respectively compared to the corresponding period of last year

More bullshit figures. Who believes that there has only been a 0.9% drop?

[rfukata]

"The association said Thailand has been losing its competitiveness in the global rice market since its price is US$120-180/tonne higher than other exporting countries" (not only competitiveness, also - Quality)

"Japan is the second largest market for US rice by value. 355,000

tons of US rice, with a total value of about 242 million dollars, was shipped
to Japan in 2012."

(source NHK online news Japan Mar.15,2013)

[allan michaud]

Math check.

10.5mill tonnes for 22.3billion baht works out to 2,130baht per tonne??????. Is thailand really selling its rice at an average of USD71 per tonne?

The article suggests Thailand is asking $120 per tonne more than other countries who are asking between $400 and $450 a tonne. So if Thailand is selling at say $520 per tonne they should have made closer to 160 billion baht?

[Locationthailand]

PTP can issue as much bullshit as they like re sales. Fact is, people don't pay above market price if others can supply. They can and they do and they are. Stupid is as stupid does Thailand. Wake up.... You shot yourself in the foot and now by all this garbage media, you are simply opening your mouth to change feet.

[waza]

PTP can issue as much bullshit as they like re sales. Fact is, people don't pay above market price if others can supply. They can and they do and they are. Stupid is as stupid does Thailand. Wake up.... You shot yourself in the foot and now by all this garbage media, you are simply opening your mouth to change feet.

The PTP government is the only ones who pays over market for their rice, only to store it at cost further inflating that price. another PTP economic miracle.

[backtonormal]

Do we have to have 3 - 4 rice stories a week. Somebody tell the rice exporters the games over, take your billions and be extremely grateful they had such a good run at keeping the country in the dark ages while they got fabulously wealthy. Oh by the way..shut the door on the way out

[AleG]

Do we have to have 3 - 4 rice stories a week. Somebody tell the rice exporters the games over, take your billions and be extremely grateful they had such a good run at keeping the country in the dark ages while they got fabulously wealthy. Oh by the way..shut the door on the way out

I assume you don't pay taxes in Thailand.

[siampolee]

Nickymaster, post # 11

It could be me, but this whole story doesn't make any sense.

It's like a cut and paste article

The whole ''cut and paste'' issue was done by using sticky rice as the adhesive medium, hence the drop in the volume of the current rice piles