Insight: Smuggling rice to Thailand - like coals to Newcastle

By Apornrath Phoonphongphiphat and Naveen Thukral

SA KAEO, Thailand/SINGAPORE

(Reuters) - Hidden in 18-wheeler trucks, carts and pick-up vans, hundreds of thousands of tonnes of rice are being smuggled from Cambodia and Myanmar into Thailand, although the country holds enough stocks to meet half the world's annual trade in the commodity.

A populist program to support prices has led to the Thai government paying its farmers almost double prevailing prices in Cambodia and Myanmar. Farmers and traders in the neighboring countries are trying to take advantage, sending their grain across the border to be sold into the Thai intervention scheme.

The equivalent of 750,000 tonnes of milled rice is being smuggled into Thailand a year, mainly from Cambodia and Myanmar, according to estimates of analysts and traders who have studied the illicit shipments.

"No one can differentiate which one is Thai rice and which one is Cambodian rice. That makes it easy to smuggle rice in and make a profit by selling it to the government," said Kiattisak Kalayasirivat, managing director at Thai trader Novel Agritrade.

The extent of the smuggling adds to a headache for Thai Prime Minister Yingluck Shinawatra, who increased the support price for unmilled rice to 15,000 baht ($480) per tonne after she took power in 2011, to please her farmer vote-bank.

Full story: http://www.reuters.com/article/2013/07/14/us-thailand-rice-insight-idUSBRE96D0E520130714

-- REUTERS 2013-07-15

Coals to Newcastle? How very seventies. The modern saying is like billionaire criminals to Dubai.

No one can differentiate between Thai and Cambodian rice can't be right. Everything from here is so superior that surely Thai rice must stand out ?

No one can differentiate between Thai and Cambodian rice can't be right. Everything from here is so superior that surely Thai rice must stand out ?

Surely it's not all just rice at the end.

Piss-up in a brewery comes to mind. The architects of any subsidy scheme should have the checks and balances in place to ensure it is administered properly.

It looks to me as though the rice pledging scheme was planned by a 9 year old with no thought about process control whatsoever.

No one can differentiate between Thai and Cambodian rice can't be right. Everything from here is so superior that surely Thai rice must stand out ?

It has a different smell about it.

Piss-up in a brewery comes to mind. The architects of any subsidy scheme should have the checks and balances in place to ensure it is administered properly.

It looks to me as though the rice pledging scheme was planned by a 9 year old with no thought about process control whatsoever.

Can I suggest a 9 year old might have come up with something vaguely sensible ?

No one can differentiate between Thai and Cambodian rice can't be right. Everything from here is so superior that surely Thai rice must stand out ?

It has a different smell about it.

I was being slightly sarcastic but surely the only rice smell these days is of the rotten variety ?

No one can differentiate between Thai and Cambodian rice can't be right. Everything from here is so superior that surely Thai rice must stand out ?

It does stand out . . . the Thai rice is full of mould, weevils and chemicals . . . apparently.

. . . the country holds enough stocks to meet half the world's annual trade . . .

This should be an eye opener for some if this is accurate . . .

Coals to Newcastle is a phrase referring to the abundance of coal reserves Newcastle had, resulting in a price so low that could not make a profit importing coal there as the transport costs alone would be greater than the price the coal would fetch. The exact opposite applies to smuggling rice into Thailand, very profitable trade for all involved. Except the consumer and the tax payers that is.

Edited July 15, 201312 yr by Bluespunk

Whats rice got to do with Newcastle !, we Geordies get the blame

for everything !

regards Worgeordie

Whats rice got to do with Newcastle !, we Geordies get the blame

for everything !

regards Worgeordie

We've never forgiven you for "Jimmy 5 bellies" to be honest.

Piss-up in a brewery comes to mind. The architects of any subsidy scheme should have the checks and balances in place to ensure it is administered properly.

It looks to me as though the rice pledging scheme was planned by a 9 year old with no thought about process control whatsoever.

Can I suggest a 9 year old might have come up with something vaguely sensible ?

You do have a compelling argument there.

'Hub of Rice-Smuggling', perhaps ?

To be followed shortly by a Crack-Down !

Edited July 15, 201312 yr by Ricardo

'Hub of Rice-Smuggling', perhaps ?

To be followed shortly by a Crack-Down !

Just heard on the news the government is in a war against dengue fever so maybe a crack down will go on hold like so many things on the official back burner.

. . . the country holds enough stocks to meet half the world's annual trade . . .

This should be an eye opener for some if this is accurate . . .

Annual export import of rice is only 30mn to 40 tons.

'Hub of Rice-Smuggling', perhaps ?

To be followed shortly by a Crack-Down !

Just heard on the news the government is in a war against dengue fever so maybe a crack down will go on hold like so many things on the official back burner.

Perhaps they might transfer the problem to an inactive-ministry ?

Whats rice got to do with Newcastle !, we Geordies get the blame

for everything !

regards Worgeordie

The port of Newcastle in NSW, Australia, is a major exporter of high quality black coal.

But there are no government idiots offering 50% above market rates, before depreciating the offer due to low quality and/or water content.

Coals to Newcastle? How very seventies. The modern saying is like billionaire criminals to Dubai.

The seventies was the era that produced life as we know it today, Rock n Role, Drugs, street racing, hippies, punks, grate leaders and fantastic con artists, what you youngsters think what you know about life is just a generic version of the actual product.

I wonder if the rice scheme has anything to do with it

Coals to Newcastle? How very seventies. The modern saying is like billionaire criminals to Dubai.

The seventies was the era that produced life as we know it today, Rock n Role, Drugs, street racing, hippies, punks, grate leaders and fantastic con artists, what you youngsters think what you know about life is just a generic version of the actual product.

Rock & Roll was 50's Hippies 60's

Coals to Newcastle? How very seventies. The modern saying is like billionaire criminals to Dubai.

The seventies was the era that produced life as we know it today, Rock n Role, Drugs, street racing, hippies, punks, grate leaders and fantastic con artists, what you youngsters think what you know about life is just a generic version of the actual product.

You seem to be suffering from a not-so-rare mental disorder which causes the belief that if you were not there to observe something, it didn't happen.

Gotta give them rice smugglers credit for taking advantage of Thailand rice scam

I wonder if the rice gets mold and pesticides added before or after entering Thailand?

I tried to point this out when the rice was missing from the warehouse, and now it's news? Look it up.

Coals to Newcastle? How very seventies. The modern saying is like billionaire criminals to Dubai.

The seventies was the era that produced life as we know it today, Rock n Role, Drugs, street racing, hippies, punks, grate leaders and fantastic con artists, what you youngsters think what you know about life is just a generic version of the actual product.

Rock & Roll was 50's Hippies 60's

I can't personally remember those days but the big boys told me about it...LOL. If there's any thunderbolts due from the heavens they've got my name on them.

. . . the country holds enough stocks to meet half the world's annual trade . . .

This should be an eye opener for some if this is accurate . . .

Annual export import of rice is only 30mn to 40 tons.

and you know that

how?

What is wrong with bringing rice from Cambodia and Myanmar, Both countries are close friends of the ruling party and Big Brother. The niece of the PM is part of the Cambodian rulers, family.

The rice could be the rice we find in the market. The Thai rice is being exported?

Edited July 15, 201312 yr by tomross46

It's all about votes - pure and simple, vote buying on a grand scale

If the farmers hadn't been on board they would have lost the election and now they can't piss them off in case there is an early election - democracy and politics PTP style

Titanic has a new target to hit and that target is RICE BERG,.... RICE BERG AHEAD!!!!

"What, where!????"