Thai Commerce Min aims for annual rice export of 8 to 10 million tonnes

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Commerce Ministry aims for annual rice export of 8 to 10 million tonnes
Petchanet Pratruangkrai
The Nation

Stockpile sales from pledging continue via private, govt deals

BANGKOK: -- Thailand will try to export about 8 million to 10 million tonnes of rice a year to continue releasing its inventory from the pledging scheme.

"Normally, Thailand will have buffer stocks of at least 10 million tonnes," Commerce Minister Niwatthumrong Boonsongpaisan said yesterday. "The government will continue to sell rice from stockpiles through many methods. The country should export about 8 million to 10 million tonnes of rice a year. That includes exports by the government and by private exporters."

The National Rice Policy Committee meets today to discuss rice policy and the pledging project.

Niwatthumrong, who is also a deputy prime minister, said that by boosting overseas sales, Thailand should earn more income to run the pledging project.

Thailand has about 15 million tonnes of stored rice, of which 5 million tonnes already have contracts and are waiting for shipment, he said.

Statistics show that Thailand sent abroad 4.92 million tonnes of rice worth US$3.33 billion (Bt100 billion) in the first nine months of the year. The major foreign markets are Iraq, Benin, South Africa, the United States and Japan.

The government's budget should be adequate to pay farmers this year, he said. Spending of Bt270 billion is estimated for the rice-pledging project this year.

The Finance Ministry should provide a clear explanation of the delay in payments to farmers, Niwatthum-rong said. The Commerce Ministry has already returned Bt160 billion to the Finance Ministry during the past two years from the proceeds of rice sales. The government should have no problem paying farmers, he stressed.

According to Commerce Ministry, the government has already spent Bt600 billion for the first two years of the pledging scheme.

The loss for the first year was Bt136 billion. The government has not yet finalised the losses for the past two years, saying it needs to unload pledged rice so that it can calculate an exact figure.

The World Bank recently warned that Thailand faced huge losses of up to Bt400 billion from its pledging scheme.

Niwatthumrong immediately dismissed the World Bank's loss estimate, saying that last year, the government spent Bt330 billion. He called on the World Bank to explain how it came up with that figure.

The Public Warehouse Orga-nisation said it would sell about 200,000 tonnes of cheap rice this month under the government's policy to ease the cost of living for consumers.

PWO president Chanudpakorn Vongseenin said the rice would be distributed in 40 million 5-kilogram packs. The rice will be sold for one year at Bt85 per pack.

The government will continue to release rice to the market soon.


-- The Nation 2013-10-09

[apetley]

No mention of China being a major buyer despite the promise of a deal greater than all that sold abroad the previous 9 months......confusing.

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

[ratcatcher]

No mention of China being a major buyer despite the promise of a deal greater than all that sold abroad the previous 9 months......confusing.

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

."..........confusing."

Correct! That is the intention. In other parts it is called "baffle them with bullshit"

[dcutman]

He called on the World Bank to explain how it came up with that figure. (400 billion loss)

Maybe Niwatthumrong should open up the books to an independent agency for a complete audit.

[waza]

According to Commerce Ministry, the government has already spent Bt600 billion for the first two years of the pledging scheme.

The loss for the first year was Bt136 billion. The government has not yet finalised the losses for the past two years, saying it needs to unload pledged rice so that it can calculate an exact figure.

The World Bank recently warned that Thailand faced huge losses of up to Bt400 billion from its pledging scheme.

Add to that the allocation of a further 80 billion baht increase to the 2013-2014 rice scamming season, then The world Bank is underestimating the losses.

[Ulic]

You have not lost a baht until you sell. So let it rot, never sell and just keep it on the books as an asset.

Most important ,if the shit hits the fan deny, deny, deny.

[Valentine]

Confusing numbers & contradictions on a daily basis. The real numbers will never be revealed while the smoke & mirrors continue.

[khunken]

The minister has absolutely no credibility. As Waza says the WB's figure is probably leaning towards the low side. The export 'figures' are secret, just like the loss realised on any exports.

The problem for PTP is how to stop the rot. They are locked into the scheme without any idea of how to taper it off. Plus it has other groups looking for similar costly subsidies. The EU's food and wine mountains & lakes should have been a warning.

[cloudhopper]

or 6.5 M tons, according to the WSJ.

http://blogs.wsj.com/searealtime/2013/09/22/thailand-likely-will-struggle-to-get-back-to-no-1-in-rice-exports/

[ratcatcher]

The minister has absolutely no credibility. As Waza says the WB's figure is probably leaning towards the low side. The export 'figures' are secret, just like the loss realised on any exports.

The problem for PTP is how to stop the rot. They are locked into the scheme without any idea of how to taper it off. Plus it has other groups looking for similar costly subsidies. The EU's food and wine mountains & lakes should have been a warning.

The minister government has absolutely no credibility.

[ratcatcher]

You have not lost a baht until you sell. So let it rot, never sell and just keep it on the books as an asset.

Most important ,if the shit hits the fan deny, deny, deny.

I believe it is not the Thai, nor the Asian,way to admit you were wrong. This causes the loss of face we are all familiar with. Many banks keep houses on the books for years as an asset even though the places are deteriorating at a furious rate with roofs leaking, yards overgrown with weeds and little prospect of a sale to a sucker.

It's just the way it is. Same with the rice, no-one will ever admit there's a problem, just lie about private government to government sales etc, that no-one can trace or investigate easily. But it keeps the peasants happy.

[Thai at Heart]

Statistics show that Thailand sent abroad 4.92 million tonnes of rice worth US$3.33 billion (Bt100 billion) in the first nine months of the year. The major foreign markets are Iraq, Benin, South Africa, the United States and Japan.

According to Commerce Ministry, the government has already spent Bt600 billion for the first two years of the pledging scheme.

Ouch.......So if they had 15mn tonnes on stock, and 5mn approx is worth 100bn, the next 10mn should be 200bn. How much have they sold already out of the total since they started? As someone said up top, so far they have reportedly lost 125bnn. Plus what appears to be possibly a loss of 200bn on what remains. Wowsers. 400bn isn't too far off then.

I bet what is left in the warehouse isn't exactly Hom Mali Grade A either.

Edited October 9, 2013 by Thai at Heart