China to buy huge volumes of rice, rubber from Thailand

[AleG]

Rice and Calculation ???

I try to understand the rice subsidiary system.

Can somebody explain me this calculation:

Thailand produce yearly 37.000.000 ton Paddy rice

A part of this production get the price of 15.000 baht per ton.

37 million against 15.000 baht => 555 billion baht

If the government sells this rice for 12.000 per ton it means 444 billion baht

In this case the loss will be 111 billion baht.

How is it possible the government comes on 270 billion baht loss every year.

This calculation is made on the fact that the government should guarantee all the

produced rice, but they don't do.

I believe that the rice system is the way for the corruption and fraud mill.

Always when it goes about big amounts and a failing controllsystem it goes wrong in every country.

Because money counts more than integrity.

But if somebody can explain what is wrong with my calculation.

Please explain seriously!

I don´t know about your numbers, but there´s one thing you missed. The Rice SchemeTM buys paddy rice, the rice coming directly form the fields so it includes the weight of the grain husk, humidity and whatever dirt it may have. After processing one ton of paddy rice you end up with less than a ton of polished grain, I´m not sure what the difference is, from memory it´s around 20 or 30 per cent.

So from 37 million tonnes (assuming your figure) substract 25% as an average you end up with 27.75 million tonnes of polished rice ready to be sold or to be kept to rot in a silo because nobody with two brain cells to rub together would buy such overpriced commodity when there are cheaper alternatives, as the case may be.

[Jack007]

Thanks for the explanation how paddy rice gets rice for consumption, but in that case the figures gets more bad.

The yearly production of 37 million ton paddy rice i got from an artikel on ThaiVisa.

So we get 27 million ton rice for consumption it means 405 billion baht and with a sellingprice of 12.000 baht per ton instead the marketprice of 14.000 baht (usd 470) it will bring 324 billion baht.
This means a short from 81 billion baht and not 270 billion baht.

Can somebody help me to understand the next step?

Tnx

[jbrain]

Thanks for the explanation how paddy rice gets rice for consumption, but in that case the figures gets more bad.

The yearly production of 37 million ton paddy rice i got from an artikel on ThaiVisa.

So we get 27 million ton rice for consumption it means 405 billion baht and with a sellingprice of 12.000 baht per ton instead the marketprice of 14.000 baht (usd 470) it will bring 324 billion baht.

This means a short from 81 billion baht and not 270 billion baht.

Can somebody help me to understand the next step?

Tnx

The issue is that Thailand isn't selling at 12000 Bht, because as always they feel they are superior to other countries and ask a premium for their rice.

Thing is that importers aren't from the same idea and buy their rice in neighboring countries at below 12.000 Baht

http://www.bloomberg.com/news/2013-10-14/record-thai-rice-hoard-expanding-global-supply-glut-commodities.html

Record Thai Rice Hoard Expanding Global Supply Glut: Commodities

Live Rice Index

http://livericeindex.com/

[waza]

Thanks for the explanation how paddy rice gets rice for consumption, but in that case the figures gets more bad.

The yearly production of 37 million ton paddy rice i got from an artikel on ThaiVisa.

So we get 27 million ton rice for consumption it means 405 billion baht and with a sellingprice of 12.000 baht per ton instead the marketprice of 14.000 baht (usd 470) it will bring 324 billion baht.

This means a short from 81 billion baht and not 270 billion baht.

Can somebody help me to understand the next step?

Tnx

Your also forgeting the cost of storage, pesticides, fumigation and maintainace of this rice. Plus the cost of policing the scam, the RTP recieved a special budget allocation to perform this task.........

An increasingly unpopular government sticks to its worst and most costly policy.....Storing the rice also carries administrative and logistical costs, and demands expensive new warehouses. Concern is also rising over the quality of the rice piling up in the warehouses. Rice always deteriorates, but the suspicion is growing that stocks are being contaminated with substandard rice. Criminal gangs and bent officials are said to have smuggled in thousands of tonnes of cheap grain from Cambodia and Myanmar in the hope of profiting from government largesse.http://www.economist.com/news/asia/21583281-increasingly-unpopular-government-sticks-its-worst-and-most-costly-policy-rice-mountain

The government will rent an additional 180 warehouses over the next few weeks to accommodate the grain, a commerce ministry official said. There are already 60 warehouses across the country storing the grain it has bought so far. http://www.bdlive.co.za/world/asia/2013/01/16/thailand-to-rent-additional-storage-facilities-as-rice-warehouses-fill-up

Private warehouse owners in Thailand have hiked rents by up to 15% as it becomes increasingly clear that the government will have to rely on them to store rice that will be procured from the ongoing harvest. Local sources say the average warehouse rent stands around Bt160-Bt190 (about $6) per square meter per month, but could rise higher in the coming months. - See more at: http://oryza.com/content/thailand-private-storage-companies-eye-windfall-rice-storage-problem-mounts#sthash.wDAlJqyI.dpuf

Edited October 16, 2013 by waza

[waza]

This is interesting, it gives the facts about this and previous rice deals with China...........http://www.ricenewstoday.com/?tag=rice-deal

Edited October 16, 2013 by waza

[boomerangutang]

'.....in addition, the Thai government will promise not to make a mention of problems with Tibetans losing their country.' Oops, almost forgot, the Chinese-Thai Shinawatre gov't would never do something so outrageous - so no need to include that condition in any deals with Li and his Beijing politburo. So what, if thousands of Tibetans continue to rot in prisons for 'thought crimes' - what's important is Yingluck and Li smiling together.

Putting people in prison for thought crimes - now there's an idea !

Diplomatic protocol generally avoids linking social and cultural differences to their commercial transactions. Such in the realm of United Nations Sanctions and of course the fact United States of America are big enough to force us all to comply with their unilaterally imposed sanctions as well.

When heads of state meet, they (or their deputies) do discuss social/humanitarian issues, though this happens more with western countries. Much less in Asia, because 'face' is so much more important than substance.

Example: in a western country, if there's a wife being beaten in the house next door, and screams are heard around the neighborhood each night, the neighbors will keep to themselves and think, "well, it's their problem to work out. Plus, if I employ my Buddhist teachings, I can get to where I don't hear the bad sounds."

In a western country, some tangible action would be taken: call police, or go knock on neighbor's door, etc.

Same happens in comparative diplomatic talks between heads of state. Asian thinking; it's preferable to avoid uncomfortable issues - even if people or the environment is suffering greatly. It's not worth the potential loss of face - particularly to a 'pu yai' or VIP.

[AleG]

Rice deal with China exists: PM

BANGKOK: -- Prime Minister Yingluck Shinawatra insisted that China would import 1 million tonnes of Thai rice per annum, quashing the scepticism that there was no such deal.

She said after the Cabinet meeting that China earlier agreed to buy 1 million tonnes in five years. However, China will hold an internal trade to change this deal, she said.

She said that the memorandum of understanding for the rice sale would be signed soon, pending for details to be completed by the Commerce Ministry.

So if all is as clear as day why would or why should the Prime Minister make this particular statement?

Seems as if thaksinspeak is in disarray as per usual, liars need to have extremely good memories.

Lewis Carrol could have written a book titled Yingluck in Blusterland if he was still alive.

The news today from parliament is the Commerce Minister saying that it´s an "informal deal", as in Thailand saying "would you buy 1M tonnes of our rice, pretty please" and China saying "yeah, sure, we´ll call you back on that later".

[monkeycountry]

Hahaha. Just read the news elsewhere. The responsible minister admits there is not even a MOU. They jave just discussed buying alot of rice. Seems it went something like this.

Yingluck: will you buy 1 million tonnes of rice a year?

Chinese PM: perhaps, lets see what the future brings.

Yingluck (to Thailand): China has signed a contract to buy 1 million tonnes of rice per year and buy me new shoes!

To make it clear for those of you who support PTP. Your government admits there is no contract, not even a MOU. And yes, I think you are a monkey :-)

[Daniel5]

The other paper also highlights that this latest admission that there is nothing firm about the supposed deal to buy 1 million ton of rice is the same sort of BS that the government put out last year about how China had agreed to buy 5 million tons of rice per year.

Yingluck... the center of the hub of obsfucation.

[gemini81]

China to buy Thailand (please wait a little while longer though; until Shinawatra is done pillaging and raping the country and transferring it abroad first- just a few trillion more please, before a revolution breakout......)

[Daniel5]

China to buy Thailand (please wait a little while longer though; until Shinawatra is done pillaging and raping the country and transferring it abroad first- just a few trillion more please, before a revolution breakout......)

It's only taxpayers' money so no big deal if it gets ripped off.