Warning On Rice Policy A Wake-Up Call For Thai Govt

[chiangmaikelly]

There are so many other costs involved G J each one in its self may me minor but when they are all added up they will be a fair bit per ton.

Then multiply that by 18 million.

For instance:

Power

Fuel

cartage

security

labor to move the stuff

insecticides, pesticides, fungicides , assuming they are used.

So how much rice is in storage and how much is it costing?

[Dap]

Many government figures said this estimate was possibly used by Moody's, unfairly against the government, in its criteria, threatening a possible downgrade of Thailand's credit ratings.

About time Moody's was banned from reporting on Thai figures.

They would if they could.

[thaicbr]

There are so many other costs involved G J each one in its self may me minor but when they are all added up they will be a fair bit per ton.

Then multiply that by 18 million.

For instance:

Power

Fuel

cartage

security

labor to move the stuff

insecticides, pesticides, fungicides , assuming they are used.

So how much rice is in storage and how much is it costing?

Call Yingluck and ask her. Hopefully she knows by now ..... she didn't on Tuesday.

Dial 555 66 2583 (hahaha no clue) numeric

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Edited June 6, 2013 by thaicbr

[apetley]

There are so many other costs involved G J each one in its self may me minor but when they are all added up they will be a fair bit per ton.

 

Then multiply that by 18 million.

 

For instance:

 

Power

Fuel

cartage

security

labor to move the stuff

insecticides, pesticides, fungicides , assuming they are used. 

So how much rice is in storage and how much is it costing? 

About 20 million tons in storage. A figure of 800bht per ton per month appeared in the news recently.

That would suggest storage costs of 192 billion bht per year if stock remains constant.

Sent from my GT-I9003 using Thaivisa Connect Thailand mobile app

[Robby nz]

chiangmaikelly

So how much rice is in storage and how much is it costing?

We are going to be told that tomorrow, if not we, then Moodys are to be told.

Whether the numbers given will be anywhere near the truth is another thing.

For whether there are accurate records and if so whether they, (the ministries involved) have had time to correlate those records is doubtful.

Even if they have I am sure you are aware that there is such a thing as creative accounting which can slant things in any required way.

[chiangmaikelly]

chiangmaikelly

So how much rice is in storage and how much is it costing?

We are going to be told that tomorrow, if not we, then Moodys are to be told.

Whether the numbers given will be anywhere near the truth is another thing.

For whether there are accurate records and if so whether they, (the ministries involved) have had time to correlate those records is doubtful.

Even if they have I am sure you are aware that there is such a thing as creative accounting which can slant things in any required way.

And you think Moodys is a chump?

[EyesWideOpen]

The really sad part of this whole sordid episode is that nothing will actually happen to anybody. A massive mistake by the government, and billions of baht pocketed by the inside people. But nothing will happen. Maybe a scapegoat will be offered up, and a bit of lost face . Then next election hand out more money to the red buffaloes, and win that election as well. As Thaksin tightens his grip on the country, things seem to really be headed downhill. For the first time ever, I am going to start thinking about an exit strategy.. :-(

[wealth]

It's about softening up the farmers so they would sell and be taken over as we have already seen by a certain group and person. It's a big deal between T and M (GMO)

Well well, after corn (GMO) and other vegetables and fruits, rice seem to be next on the agenda. In other words it can't be exported to most of the countries. Boiled salted Corn you can't even find on the road sold by street vendors any longer. Locals resist to buy it. So what do they do with that? Processed into other food?

A quick search about GMO in TH is rather worrisome.

[Thai at Heart]

http://books.google.co.th/books?id=Ni4C73mFAvUC&pg=PT57&lpg=PT57&dq=rice+storage+duration&source=bl&ots=PXizoL5igw&sig=7zgZUjD1Zfh2V2YOt049svdGo6g&hl=en&sa=X&ei=BaCwUdz_GczJrAfQnoDwAw&ved=0CC8Q6AEwAjgU

Rice storage and quality study.

Edited June 6, 2013 by Thai at Heart

[pistachios]

Question. Where do they sell the rice WITHOUT incurring a loss?

I don't think they do. The question is how much of a loss. No one knows. Unless there is major bad news like flood or famine or war they are going to sell at a loss.

So why haven't they sold the rice ASAP at market price instead of letting it depreciate? Did they really think they could wait ad vitam eternam until the prices doubled up?

[pistachios]

There are so many other costs involved G J each one in its self may me minor but when they are all added up they will be a fair bit per ton.

Then multiply that by 18 million.

For instance:

Power

Fuel

cartage

security

labor to move the stuff

insecticides, pesticides, fungicides , assuming they are used.

So how much rice is in storage and how much is it costing?

About 20 million tons in storage. A figure of 800bht per ton per month appeared in the news recently.

That would suggest storage costs of 192 billion bht per year if stock remains constant.

Sent from my GT-I9003 using Thaivisa Connect Thailand mobile app

It was probably a typo, it cannot cost so much! 800bht per ton per year would be a more reasonable figure.

[MaiChai]

How about some quantitative easing? That would help with the strong baht and this scheme?

[Bagwan]

The amazing thing is that they really have no idea where it stands. None. Yet it's big enough to break them as it's all borrowed from a government owned bank which can't afford the loss.

They can't answer a simple straightforward question about where it all stands because no one knows.

It's possible that they "can't" answer because a lot has been stolen both money and rice.

In all honesty, the best thing for the government to do is say nothing at all.

You lost me after only three words. Honesty? TIT.

[rubl]

Well, who wants to believe Moodys when we have Bloomberg and the Worldbank?

In December 2012 the Worldbank said the losses are estimated to be in the range of Bt115-150 billion (1.0-1.3 percent of GDP) per harvest season.

Wordbank, Thailand Economic Monitor December 2012, www.worldbank.or.th

[Bagwan]

Many government figures said this estimate was possibly used by Moody's, unfairly against the government, in its criteria, threatening a possible downgrade of Thailand's credit ratings.

About time Moody's was banned from reporting on Thai figures.

Wouldn't that assist the Government's apparent plan to take Thailand back to the Dark Ages? I don't think that investors and lenders would cooperate with Thailand if they were completely in the dark.

I have advised the family to take any money that they have in the Government Savings Bank out right now.

[GentlemanJim]

Just reading through some of the articles in world newspapers about the mountains of rotting rice, and I simply do not know how the Thai rice industry is going to recover. It has been set back at least ten years. Who on earth would want to risk buying the stuff. If I were shopping for rice in the supermarket back in the UK now the choice between a bag of Thai Jasmine (normal choice) and Indian rice would be easy. I wouldn't buy Thai rice again for years.

For some reason the penny never clicked until a few days ago that one of the guys heavily involved in running this scam is the one facing terrorist charges and the one who called for the burning of Bangkok, Nattawut himself.

Edited June 6, 2013 by GentlemanJim

[jbrain]

The Commerce Ministry is required to submit initial figures to Yingluck

by today, and the figures would be revised and finalised before being

made public tomorrow, and later communicated to Moody's, Wim said.

Should read, and the figures will be modified and corrected with some honest typos until they look fine before released to the public and later to Moody's

Edited June 6, 2013 by jbrain

[smedly]

I made a statement here on TV several months ago that TS was trying to destroy Thailand

looks to me like he is gaining ground - it is pretty shocking that this has been allowed to continue

My guess is PTP will emerge as the most corrupt incompetent fraudulent dishonest administration this country has ever seen - all hoodwinked by a rich maniac criminal coward who is about to rape the thai people again

shame

PS to Taksin - have you not ripped off these poor people enough - why don't you just retire with your corrupt billions and leave these people alone - enough is enough - let it be

Edited June 6, 2013 by smedly

[ray23]

Three things why didn't they sale it immediately, it was too expensive at the time. Maybe with China's floods they can sale some this year. But not at break even price,

If I understood things correctly they have been importing rice from Cambodia. From the looks of they would have been better off to release the product for Thai consumption, then to pay storage for years of it.

[GentlemanJim]

Three things why didn't they sale it immediately, it was too expensive at the time. Maybe with China's floods they can sale some this year. But not at break even price,

If I understood things correctly they have been importing rice from Cambodia. From the looks of they would have been better off to release the product for Thai consumption, then to pay storage for years of it.

Don't buy cheap Thai rice from the local market! I am horrified to think of the outbreaks of disease that could occur from selling this stuff. It's all too sad for words. There is an old Gentleman in hospital right now, and if he was not as sick as he is, he would have stepped in and stopped this along time ago. Of course this is why Thaksin feels the time is right to start Operation Destroy Thailand. I even think that some of the PTP MP's who have their seats in parliament because of money are really too stupid to see Thaksin's crystal clear agenda. People are starving in the world and this criminal has 18 million tons of rice rotting.

[Ricardo]

And FWIW, the second-crop of (irrigated) rice is now starting to be harvested locally, up here in the North-West, which can only add to the storage/financing problems.

[Thai at Heart]

And FWIW, the second-crop of (irrigated) rice is now starting to be harvested locally, up here in the North-West, which can only add to the storage/financing problems.

This was posted in January.

http://fareasternagriculture.com/crops/agriculture/thailand-to-rent-warehouses-for-storing-rice-grains

Faced by a shortage of storage space for rice grains, Thailand has revealed plans to rent private warehouses to store next month’s harvest

Thailand’s rice millers have warned that collection might have to stop for lack of storage space, as the country expects to produce about eight million to 10mn tonnes of paddy rice in the February harvest, or about five million to seven million tonnes once husked.

That will be in addition to government purchases of up to 20mn tonnes of milled rice in an intervention scheme kicked off in October 2011 aimed at helping farmers by paying prices above the market rate.

Thailand rice exporter Boonsong Siam Land said in a statement, “There’s no problem at all and we can rent more private warehouses to store rice.”

“We would, however, need a few days or a week to check them out, and clean them up to make them suitable for storing rice.”

A commerce ministry official said the government will rent an additional 180 warehouses over the next few weeks to accommodate the grain. There are already 60 warehouses across the country storing the grain it has bought so far.

There isn't any space. Am looking for the link showing that farmers are having to wait weeks to be able to deliver their rice to the mills, because they can't get paid until they do so. The mills are full to bursting with rice, because there isn't anywhere to move it to.

Samarendu Mohanty, a senior economist at the International Rice Research Institute, a group based in the Philippines, said: "Thailand will have to get rid of the surplus in the next few months to be able to continue the programme and purchase rice again. Thailand cannot continue to hold these stocks for a long time, due to quality issues and also the space."

http://www.scmp.com/business/commodities/article/1180817/exporters-face-record-rice-glut

[chiangmaikelly]

Just reading through some of the articles in world newspapers about the mountains of rotting rice, and I simply do not know how the Thai rice industry is going to recover. It has been set back at least ten years. Who on earth would want to risk buying the stuff. If I were shopping for rice in the supermarket back in the UK now the choice between a bag of Thai Jasmine (normal choice) and Indian rice would be easy. I wouldn't buy Thai rice again for years.

For some reason the penny never clicked until a few days ago that one of the guys heavily involved in running this scam is the one facing terrorist charges and the one who called for the burning of Bangkok, Nattawut himself.

Thailand’s total rice exports in the first quarter (Q1) of 2013 (January – March) 796,304 tons.

In terms of value, total rice exports earned Thailand about 33.36 billion baht.

Average export prices of white rice in Q1 2013 stood at around $573 per ton, up around 1.5% from around $565 per ton in Q1 2012. Average prices of Pathumthani rice increased to around $989 per ton in Q1 2013, up around 8% from around $916 per ton in the same period last year, while average Hommali rice export prices in Q1 2013 stood at around $1,042 per ton, up around 10% from around $944 per ton recorded in the first quarter of 2012.

[Nickymaster]

CMK those are bad numbers and if this trend continues for the rest of the year losses will be huge.

They only sold 796,304 tons.in the first quarter?!

Edited June 7, 2013 by Nickymaster

[chiangmaikelly]

CMK those are bad numbers and if this trend continues for the rest of the year losses will be huge.

They only sold 796,304 tons.in the first quarter?!

I didn't say they were good but they are accurate. Moodys are not chumps. But numbers are numbers. I like numbers. I don't like the useless exaggerations like "mountains of rotting rice." On a positive note Russia and China are buying and the baht is going down which will help sales.

[apetley]

Only a couple of years ago Thailand exported close to 10 million tons over the course of a year. If they carry on at this rate they'll be lucky if this years total is 3 million.

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[Thai at Heart]

CMK those are bad numbers and if this trend continues for the rest of the year losses will be huge.

They only sold 796,304 tons.in the first quarter?!

I didn't say they were good but they are accurate. Moodys are not chumps. But numbers are numbers. I like numbers. I don't like the useless exaggerations like "mountains of rotting rice." On a positive note Russia and China are buying and the baht is going down which will help sales.

And the commerce ministry aims for 8+ mn tonnes this year. Better get moving....

[geriatrickid]

IN Channel has just reported that a government spokesperson said that Moody's Rating Agency has it's figures all wrong and losses will ONLY be in tens of billions of Baht not hundreds. The report went on to say the Finance and Commerce Ministries have not yet finalised their figures but still the government can say everybody else is wrong. What else would we expect ?

It's deja vu all over again.

[jimbeam1]

CMK those are bad numbers and if this trend continues for the rest of the year losses will be huge.

They only sold 796,304 tons.in the first quarter?!

I didn't say they were good but they are accurate. Moodys are not chumps. But numbers are numbers. I like numbers. I don't like the useless exaggerations like "mountains of rotting rice." On a positive note Russia and China are buying and the baht is going down which will help sales.

Of rotting rice.lol

jb1

[Nickymaster]

They have earned 33 billion in the first quarter. Their administrative and storage costs are around 40 billion/year......