Foreign rice traders welcomed to buy rice directly from Thai govt

[webfact]

Foreign rice traders welcomed to buy rice directly from Thai govt
By English News



BANGKOK, Aug 23 – Thailand's Ministry of Commerce will sell rice directly to state enterprises and the private sector abroad in a new attempt to release rice from the government’s stockpiles.

Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan said overseas buyers would be required to buy rice at prices not lower than the general bidding prices and government-to-government purchase must be for export only.

The new measures, concluded in the Rice Release Sub-committee, will be submitted to the National Rice Policy Committee on Monday for approval.

He said rice traders in China and the Middle East have asked to purchase rice directly from state stock, adding that domestic auctions would continue but that some regulations would be adjusted to attract more bidders.

About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said.

The private sector will be hired to pack the rice to be sold at the Commerce Ministry’s economy-priced commodity shops and government agencies.

Mr Niwatthamrong said he would discuss guidelines on the new rice purchase plan with farmer representatives from various groups and associations.

The new guidelines, which must be approved by the Cabinet, should be implemented in time for the October harvest season, he said.

Wiboonlaksana Ruamraksa, Internal Trade Department director general, said the government would probably purchase rice under the subsidy scheme only once in the 2013/14 harvest and the 2014 second crop if the pledging price is fixed at Bt15,000 per tonne.

If the pledging price is lowered to Bt12,000 per tonne, two rounds of purchase will be possible, she said.

She said the scheme would cost government not more than Bt300 billion.

The Commerce Ministry will hold a bidding for the first batch of 140,000 tonnes of rice through the Agricultural Futures Exchange of Thailand (AFET) early next month.

The bidding will include 100,000 tonnes of white rice and 40,000 tonnes of Hom Mali or fragrant rice to be delivered in November, she said.

Mr Niwatthamrong has approved an allocation of Bt240 million from the International Trade Promotion Fund as collateral for the AFET trading, she said. (MCOT online news)


-- TNA 2013-08-23

[David48]

A wee re-write of the story ...

BANGKOK, Aug 23 – Thailand's Ministry of Commerce will sell rice directly to state enterprises and the private sector abroad in a new attempt to release rice from the government’s stockpiles. We have run out of places to store this mountain of slowly decaying and mouldy rice ... so it must appear that we are doing something.

Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan said overseas buyers would be required to buy rice at prices not lower than the general bidding prices and government-to-government purchase must be for export only. But that price is allowed to contain the commission for the various government representatives ... please allow say 30%

The new measures, concluded in the Rice Release Sub-committee, will be submitted to the National Rice Policy Committee on Monday for approval. Now renamed the Sticky Rice Release Sub-committee ... it's sooooooooo sticky we can't get rid of it.

He said rice traders in China and the Middle East have asked to purchase rice directly from state stock, adding that domestic auctions would continue but that some regulations would be adjusted to attract more bidders. humm ... 'regulations' ... see the comment about 30% sales commissions above.

About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said. We are so desperate we will approach the retail market ... notice there is no detail ... just an empty idea.

The private sector will be hired to pack the rice to be sold at the Commerce Ministry’s economy-priced commodity shops and government agencies. The private sector consists of 'friends of the Government ministers' ... no-one else could be trusted to package the rice. An open tender for this process ... not likely ...

Mr Niwatthamrong said he would discuss guidelines on the new rice purchase plan with farmer representatives from various groups and associations. Let's all sit and hold hands around the rice mountain. Hey ... is that mountain insured (by a non-Thai related company) ... there could be an accident and woosh ... the problem has dissapeared!

The new guidelines, which must be approved by the Cabinet, should be implemented in time for the October harvest season, he said. When is the Election due? Bugger ... have to think of a way to keep this going longer to shore up the supporter base.

Wiboonlaksana Ruamraksa, Internal Trade Department director general, said the government would probably purchase rice under the subsidy scheme only once in the 2013/14 harvest and the 2014 second crop if the pledging price is fixed at Bt15,000 per tonne. I'm sending a clear signal that if you guys are going to buy the rice from our neighbours and import it into Thailand and claim the subsidy ... you better get cracking ... not long to go now before the money tree losses it leaves.

If the pledging price is lowered to Bt12,000 per tonne, two rounds of purchase will be possible, she said.

Two bites at the cherry ... could this get any better?

She said the scheme would cost government not more than Bt300 billion. humm ... $10 billion dollars ... I wonder just exactly how much of that has filtered down to those in need ...

The Commerce Ministry will hold a bidding for the first batch of 140,000 tonnes of rice through the Agricultural Futures Exchange of Thailand (AFET) early next month. Mate ... I wouldn't be holding my breath for a high price!

The bidding will include 100,000 tonnes of white rice and 40,000 tonnes of Hom Mali or fragrant rice to be delivered in November, she said. Soon that white rice will be fragant also ... odour-de-mould

Mr Niwatthamrong has approved an allocation of Bt240 million from the International Trade Promotion Fund as collateral for the AFET trading, she said. (MCOT online news). Great ... take the promotional money away from benefiting Thailand and it industries so that it can be assigned to advertising mouldy rice ... marketing genius!

[soundman]

Desperation is setting in.

[soundman]

Btw - does rice have a shelf life?

[Ricardo]

overseas buyers would be required to buy rice at prices not lower than the general bidding prices

Which are what ? Oops, sorry, that's a National Secret, so the man-from-the-ministry can't tell you, or the general-public, in whose name this riceberg is owned !

the scheme would cost government not more than Bt300 billion.

But hey, what's 10 billion dollars or so, after all ?

Plenty more where that came from !

[Nickymaster]

Should read:

Foreign rice traders welcomed to buy rice directly from Thai govt represented by Thaksin and his team

[moe666]

PTP aka. Big T has become the rice trader of choice in Thailand. By the policy of buying all rice under the scam they have marginalized if not out right put private traders out of business. While doing this they have destroyed the community millers that were set up years back to give some rice farmers a say in the sale of there rice.

Edited August 23, 2013 by moe666

[Zolt]

Foreign traders have already made their opinion clear in the last couple of auctions. The price of Thai rice is too high and the quality and state of preservation more than doubtful. There are plenty of other reliable suppliers on the market.

[Neilly]

Foreign rice traders welcomed to buy rice directly from Thai govt

By English News

Hope they understand the saying "Pig in a Poke" LOL

[Nickymaster]

Mr. Nattawut Saikua (H.E. Deputy Minister of Commerce) and Red Shirt leader has been very quiet lately. After telling his followers to burn Bangkok, and after failing to shore up rubber prices in his capacity as Deputy Minister of Agriculture and Cooperatives Mr. Nattawut hopefully has come to the conclusion that actions and results speak louder than words.

Edited August 23, 2013 by Nickymaster

[ggold]

if they set the reserve price to high they are not going to sell any of the stockpile. I would even guess that the quoted price for rice as a commodity will fall in the next few weeks because of this attempt to sell off spoiled rice. The Iranians have already said they will not buy anymore rice from Thailand. That in itself should be a signal to foreign buyers.

Even the claim that China and some middle eastern countries would like to buy direct from the government is probably doubtful! IMO.

[David48]

Btw - does rice have a shelf life?

When properly sealed and stored, polished white rice will store well for 25 to 30 years ...

Sitting in sacks in humid air with scant pest control ... let's think maybe 6 months.

[TackyToo]

Got nothing to do and would not mind a holiday spiked with phantastic incentives (accomodation, entertainment, cashback etc.)? Become a ricetrader visit Thailand and show interest (no actual purchase necessary) in buying 100.000 tonnes of rice.

Could be part of a new TAT package program- "The land of thousand rice trader's smiles!"

[edwinchester]

if they set  the reserve price to high they are not going to sell any of the stockpile. I would even guess that the quoted price for rice as a commodity will fall in the next few weeks because of this attempt to sell off spoiled rice. The Iranians have already said they will not buy anymore rice from Thailand. That in itself should be a signal to foreign buyers. 

 

Even the claim that China and some middle eastern countries would like to buy direct from the government is probably doubtful! IMO.

It was Iraq that supposedly said they had suspended Thai rice imports for three years and that was news from a Taksin spokesperson so remains to be seen if really true.

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

[taichiplanet]

"About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

[hellodolly]

if they set the reserve price to high they are not going to sell any of the stockpile. I would even guess that the quoted price for rice as a commodity will fall in the next few weeks because of this attempt to sell off spoiled rice. The Iranians have already said they will not buy anymore rice from Thailand. That in itself should be a signal to foreign buyers.

Even the claim that China and some middle eastern countries would like to buy direct from the government is probably doubtful! IMO.

I thought it was the Iraqis who would not buy rice from Thailand any more.

No matter the contracts will all have in fine print the real price not to be known to public.

[thomash]

"She said the scheme would cost government not more than Bt300 billion." Oh really ONLY

300 billion what a deal! But once again it is probably some famous last words and will

cost a lot more.

[Tywais]

"About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

They are correct but probably hadn't taken into account the corruption tax.

[David48]

"About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

Comes down to definition ...

There is a 'metric' tonne and an 'imperial' tonne

A 'US' Gallon and a 'Gallon' that the rest of the world use to measure a liquid.

[Tywais]

"About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

Comes down to definition ...

There is a 'metric' tonne and an 'imperial' tonne

Good point. There is the Short Ton - which comes out to 15422.13 Baht/ton and the Long ton which comes out to 17272.9 Baht/ton and Metric ton which is 17,000 Baht/ton.

[jaidam]

"About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

Comes down to definition ...

There is a 'metric' tonne and an 'imperial' tonne

Good point. There is the Short Ton - which comes out to 15422.13 Baht/ton and the Long ton which comes out to 17272.9 Baht/ton and Metric ton which is 17,000 Baht/ton.

And then there is the Vietnamese, Cambodian, Indian and Pakistani ton which comes out at around 13,000B

[Thai at Heart]

"About 200,000-400,000 tonnes of rice in the governments stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

Comes down to definition ...

There is a 'metric' tonne and an 'imperial' tonne

Good point. There is the Short Ton - which comes out to 15422.13 Baht/ton and the Long ton which comes out to 17272.9 Baht/ton and Metric ton which is 17,000 Baht/ton.

And then there is the Vietnamese, Cambodian, Indian and Pakistani ton which comes out at around 13,000B

And at 13k they are profitable, at 17k, the Thai government is losing maybe 800 to 1000 baht per ton.

[Pib]

The govt needs to put ads on Ebay....and the ads should be "Place a Bid" type ads because I'm sure any "Buy It Now" price the govt would set would be too high to draw any buyers. They also need to include free shipping in the ad.

But here's the problem with any type of Ebay ad, the govt probably wouldn't accept payment via PayPal as that would offer the buyer some protection; instead the govt would probably require cash--also Merchandise Condition Unknown and No Returns.

[useronthenet]

If this was any other country, the 'brainchild' of this elaborate SCAM would be struck off in a vote of 'no confidence'. However I suspect this will never happen given most of the recepients I'm sure of this elaborate scheme is presently presiding in government.

This must be surely be the most embarrassing scandal ever to come out of Thailand so far. The fact that this government has single-handedly waisted public funds in such a casual and profound manner only endorses Thailand's gross incompetence. The crime against the country is one thing, but the fact that such waste could have funded so many other projects is perhaps the saddest part of this story.

[tominbkk]

Btw - does rice have a shelf life?

Properly stored, probably several years. In old musty sacks sitting in dank warehouses....it's already moldy! Never mind though, we will soak it with all kinds of chemicals, that will keep most of the vermin and insects out of it.

[chainarong]

The PTP has totally mismanaged this issue right from the beginning, they have continuously denied anything is wrong, when the situation was falling down around their ears , the damage has been done , all their buyers have jumped ship, now the idiots have to go back, beg, cap in hand apologise and try and renew trade ties , going from the biggest and best rice traders in the world to third world trash takes some beating, especially in the short time frame that it has happened , the Democrat party should be letting all hell lose on this important issue. ?????

[Nickymaster]

The PTP has totally mismanaged this issue right from the beginning, they have continuously denied anything is wrong, when the situation was falling down around their ears , the damage has been done , all their buyers have jumped ship, now the idiots have to go back, beg, cap in hand apologise and try and renew trade ties , going from the biggest and best rice traders in the world to third world trash takes some beating, especially in the short time frame that it has happened , the Democrat party should be letting all hell lose on this important issue. ?????

Thaksin knows that his existence depends mainly on buying rice for 15,000 THB. You won't see him scraping this policy soon. Expect him to say that this policy is doing well and should continue for a few more years. Getting ready for next elections.

That's how popular Thaksin is . So popular that he has to spend billions of dollars a year to keep himself in the spot light.

Always easy to use money that is not yours for personal gains.

Edited August 23, 2013 by Nickymaster

[MB1]

If this was any other country, the 'brainchild' of this elaborate SCAM would be struck off in a vote of 'no confidence'. However I suspect this will never happen given most of the recepients I'm sure of this elaborate scheme is presently presiding in government.

This must be surely be the most embarrassing scandal ever to come out of Thailand so far. The fact that this government has single-handedly waisted public funds in such a casual and profound manner only endorses Thailand's gross incompetence. The crime against the country is one thing, but the fact that such waste could have funded so many other projects is perhaps the saddest part of this story.

I see it in a way as similar to the notorious EU butter mountain scandal of the late 80's, maybe the Thai politicians bought a load of the butter to make their fingers even more slippery...

Maybe they just learnt from us..

[MaxLee]

Foreign rice traders welcomed to buy rice directly from Thai govt

By English News

BANGKOK, Aug 23 – Thailand's Ministry of Commerce will sell rice directly to state enterprises and the private sector abroad in a new attempt to release rice from the government’s stockpiles.

Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan said overseas buyers would be required to buy rice at prices not lower than the general bidding prices and government-to-government purchase must be for export only.

Only in Thailand, century year old rotten rice, sponsored by vermin cooperation, with extra crispy outdated vermin and bugs, full of bacteria that guarantee instant diahrrea for you and your dear children...

Edited August 23, 2013 by MaxLee

[Thait Spot]

"About 200,000-400,000 tonnes of rice in the government’s stockpiles will be packed in five-kg packages to be sold at Bt85 per unit, he said."

 

Have i done my sums wrong, but isn't 5kg at THB 85 = THB17,000 per tonne?!

 

Comes down to definition ...

 

There is a 'metric' tonne and an 'imperial' tonne

 

A 'US' Gallon and a 'Gallon' that the rest of the world use to measure a liquid.

 

 

Metric tonne

Imperial ton

US ton 2000 pounds

UK ton 2240 pounds

Metric Tonne 1000kg or 2205 pounds

Sent from my Galaxy Nexus using Thaivisa Connect Thailand mobile app