Surging Baht Wreaks Havoc On Thai Rice Exports

[waza]

Not sure if I read it right, but if this year's pledging isn't worked out until October, then there may be a lot of disgruntled farmers in November , if they no longer see the rewards for their endeavour having the value that they've become accustomed to .

You know, now that I think about it, I wonder if this last days desperate efforts by Thaksin/PTP to get his amnesty done are spurred by the sense that the house of cards is going to collapse. That this is scheme was doomed to failure was a given from the beginning, I guess they calculated that\ Thaksin would had been back as a hero before it went bust.

Now they are facing the prospect of the scheme blowing up on their faces and their largest voter block ending up hating their guts.

your roght and they are still trying to sell the stored rice from then.

[Thailand1977]

It's funny how Thaksin's proxy government can't manage the economy when there is no global economic boom as there was when he was PM.

But theyve a strong currency, thus a strong currency usually represents the economy is doing well. (unless Brown/Blair are in charge)

[MaxYakov]

For my pennies worth, there are really only three options.

1. Hoard the rice until it gets rotten.

2. Sell at rock bottom prices to get rid of the surplus.

3. Follow the new trend, bypass the wholesaler and sell directly to the distributer.

4. Turn it into wine

jb1

Great idea! And release the wine to the general Thai market just before Songkran 2014, perhaps, for maximum market impact (pardon the expression)?

[animatic]

Oh, this gets better every day. Next it will be Soros manipulating the baht to ruin Thailand.

Don't give them any ideas.

But chances are you can count the number of Thais who even know who Soros is on a couple of fingers. But he's a farang and we're farang so it will be our fault soon enough. They should just get rid of us so they can work out their problems.

Besides that was Mataher Mohammed of Malaysia blaming Soros for the '97 crash,

when he didn't want to blame neighbor Chavalit, and his clique of incompetents,

running Thailand's ineptocracy for touching off the Asian Tiger Crash.

[overherebc]

From the newspaper-that-shall-not-be-named, exports in general rose 5% in March, I think I'll stick with the disastrous scheme explanation for now.

If I had a small factory, I don't by the way, and last year I exported items that brought in 1,000,000 baht at 50 to the pound that would be 18,181 pounds.

This year I exported items that brought in 1,000,000 baht but I have increased labour costs and inflation etc, at 45 to the pound that would mean 22,222 pounds.

Could I claim that the value of exports had gone up ?

You can use the dollar rates, same question applies.

I did see a quote in a paper that can't be named using dollar increase to show improvement in exports last year to this year.

[MaxYakov]

Why don't they store the rice in a way that stops it spoiling and just hang on to it until they get their day in the sun? When I look at the way things from CP foods will keep forever in my refrigerator, there must be a technology in this country that can preserve it. Maybe pump it full of nitrogen/ClO2 then vacuum pack it? I'm no chemist, but I can open a packet of 'Lays' crisps/chips and see if they've gone off after exposure to the atmosphere.

I don't know about the rest of the country, but in my part of Udon nobody I know of is planning on planting rice this year, so they might need it here in Thailand (of course the climate can vary wildly from one village to the next, so personal observation is no measure of national sentiment.

https://www.usaemergencysupply.com/information_center/storage_life_of_foods.htm

[overherebc]

From the newspaper-that-shall-not-be-named, exports in general rose 5% in March, I think I'll stick with the disastrous scheme explanation for now.

If I had a small factory, I don't by the way, and last year I exported items that brought in 1,000,000 baht at 50 to the pound that would be 18,181 pounds.

This year I exported items that brought in 1,000,000 baht but I have increased labour costs and inflation etc, at 45 to the pound that would mean 22,222 pounds.

Could I claim that the value of exports had gone up ?

You can use the dollar rates, same question applies.

I did see a quote in a paper that can't be named using dollar increase to show improvement in exports last year to this year.

Tried to edit the post, ie 50 to 55 to the pound but somehow it wouldn't let me ?

[AleG]

From the newspaper-that-shall-not-be-named, exports in general rose 5% in March, I think I'll stick with the disastrous scheme explanation for now.

If I had a small factory, I don't by the way, and last year I exported items that brought in 1,000,000 baht at 50 to the pound that would be 18,181 pounds.

This year I exported items that brought in 1,000,000 baht but I have increased labour costs and inflation etc, at 45 to the pound that would mean 22,222 pounds.

Could I claim that the value of exports had gone up ?

You can use the dollar rates, same question applies.

I did see a quote in a paper that can't be named using dollar increase to show improvement in exports last year to this year.

That is a fair point, I don't know if the stated percentage increase is in Baht or Dollars (or Zimbabwean Dollars ) Indeed it would change the significance of the statistic.

[moe666]

I am waiting for GK to appear and explain it all away. When they started the rice pledgeing scheme he wrote a nice article here explaing how it would all fall into place after it became clear to the non belivers. But no reds here today explaining how wonderful the scam is working out.

[techboy]

Game over

Lots of nice little icons you have there. I imagine this is because your understanding of what you just read equates on a level of drawing silly little pictures. You are solely driven by a wish to enter something denigrating. A question for you: Is the retreat during the past two weeks of the Thai Baht to near where it was around one month ago only a typical stastical pullback in a devistating surge that is bound to continue? What You are not aware of this price action? Amazing And what do you make of this chart of the Thai GDP since year 2000? FYI. Since you like pictures please note that this is not stacks of beer cans.

[indyuk]

I believe a lot of things and would love a lower baht and while this might be true.. the biggest problem is not the baht but the government stance.

Why be so pessimistic. Yes Rice exports are important but only part of the picture. Overall trends in the Thai economy are on the up. Economic activity across Thailand is brisk. And the overall picture is one of stability and that of a Nation reclaiming it's place in the world.

[waza]

I believe a lot of things and would love a lower baht and while this might be true.. the biggest problem is not the baht but the government stance.

Why be so pessimistic. Yes Rice exports are important but only part of the picture. Overall trends in the Thai economy are on the up. Economic activity across Thailand is brisk. And the overall picture is one of stability and that of a Nation reclaiming it's place in the world.

Pity this wet dream is made from debt not increased productivity

Edited May 2, 2013 by waza

[Thai at Heart]

This is so sad yet so predictable when you put unqualified people in positions of power.

Thailand's pride and joy, it's rice, has had it's reputation, quality and position as number one in the world wrecked.

Truly the hub of incompetent politicians.

This is what happens when the person in charge makes their fortune through protection and monopoly.

They don't grasp a competitive market concept.

[apetley]

Very interesting couple of talks my wife had with some friends in the village today.

One police friend told her that all police have been told that they have to buy so many kilos of rice each! Actual amount is based on rank. So crazy how could anyone invent that?

Another friend said she has been told by the local school that all the parents with kids there are expected to buy some rice.

Awaiting further developments on that one because just about everyone here is connected with fice growing and will not be forced into buying the rotting crap in storage.