Thailand to reclaim world's leading rice exporter role next year

[webfact]

Thailand to reclaim world's leading rice exporter role next year
By English News



BANGKOK, Nov 20 – Thailand is maintaining its original projection to export seven million tonnes of rice this year and is set to reclaim its previous role as world’s top rice exporter next year, according to the Commerce Ministry.

Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan will today sign an agreement to sell rice and tapioca to representatives of the Chinese government following an earlier expressed intention by China to buy 1.2 million tonnes of rice from Thailand.

Surasak Riangkrul, director general of the Foreign Trade Department, said 400,000 tonnes of rice in stocks countrywide will in addition be sold to more than 30 exporters.

He said the Commerce Ministry has repaid Bt140 billion from rice sales in the pledging scheme and another batch of Bt24 billion will be returned (to the Finance Ministry) next month.

A total of Bt164 billion will be paid this year and the ministry plans to return Bt130 billion next year, at an average Bt12 billion per month, he said.

Mr Surasak said the Commerce Ministry was negotiating to sell rice on government-to-government basis to China, and countries in Southeast Asia, the Middle East and Africa.

He predicted a positive trend for Thai rice sales next year as several countries including India and Vietnam will possibly export less after their crops were hit by natural disasters.

The Commerce Ministry is coordinating with the Foreign Ministry to deliver rice to help typhoon-ravaged Philippines, he added.

Mr Surasak said four private companies joined an auction yesterday to buy 452,000 tonnes of rice from the Commerce Ministry.

Bid results will be announced today after which price negotiations will be held.

Meanwhile, the Bank of Agriculture and Agricultural Cooperatives (BAAC) is offering Bt75 billion worth of bonds with a three-year maturity to generate extra funds for the rice subsidy plan, said Suvich Rojanavanich, deputy director of the Public Debt Management Office.

Total bonds issued by 13 Thai state enterprises are currently valued at Bt706.978 billion with the BAAC offered the highest value of Bt205 billion mainly to subsidise the rice pledging scheme. (MCOT online news)


-- TNA 2013-11-20

[PaullyW]

"Thailand to reclaim world's leading rice exporter role next year"

Well, we'll see, won't we? Check back next year.

I wish Thai Visa had a feature whereby we could set reminders to follow up on these many claims by Thai experts.

Edited November 20, 2013 by PaullyW

[NeverSure]

"Thailand to reclaim world's leading rice exporter role next year"

Well, we'll see, won't we? Check back next year.

I wish Thai Visa had a feature whereby we could set reminders to follow up on these many claims by Thai experts.

Microsoft Outlook does and I just set it to pop up in a year with link to this thread.

Where's my BS flag? They can't stuff rice into warehouses at 40% over market price and then refuse to sell it and take a loss, and regain squat.

[NeverSure]

Oh I forgot. Thailand is the Hub of rice exports warehouses.

[whybother]

Thailand to reclaim world's leading rice exporter dumper role next year

[MaxLee]

So sell it to the supposed Third or fourth world countries, in Thai-Chinese terms, sell it to the foruth world scum, let the poor people there eat the rotten expired rice until they die from diarrhea, just in order to appeal so International, but screw the Western countries, who are too smart and cause the Pheu Thai to lose face...

[DLock]

This cannot happen under the current circumstance.

So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping.

Or they dump the rice pledging scheme to compete globally and raise the ire of the farmers that git them elected.

...or potentially, the Govt to Govt swap deals for Chinese high speed railway components disguise the deals as they pay over the odds for railway stuff.

Regardless, something's gotta give.

[jaltsc]

"He predicted a positive trend for Thai rice sales next year as several countries including India and Vietnam will possibly export less after their crops were hit by natural disasters."

However, people with knowledge of the situation identify the rice pledging scheme as the biggest "disaster" in the region.

[Robby nz]

Mr Surasak said four private companies joined an auction yesterday to buy 452,000 tonnes of rice from the Commerce Ministry.

Bid results will be announced today after which price negotiations will be held.

Report elsewhere said that ONLY four companies bid on the auction.

Included in the auction were 300k tons of jasmine rice which would have been new seasons as it is normally in demand and it is unlikely there would be any in storage.

The other 150k tons was normal 5% white rice, probably also new seasons.

Sure I read that in the last auction only 40% was sold as some companies were not prepared to pay what the Govt was asking.

We wait to see what the 4 companies bid on, but will probably never know what they are prepared to pay.

[rfukata]

highly unlikely. Thailand has already damaged its reputation, competitiveness, and quality of rice.

[gl555]

1) The good minister is full of crap.

2) Thailand should never have lost its status as leading rice exporter in the first place. But hey, thanks to Thaksin, the idiot PTP and their rice corruption schemes.

At least their cronies got rich(er).

[55Jay]

Should of just given farmers some extra cash or a subsidy and been done with it, rather than have this massive, shameful waste of a food resource.

At least the Thai Navy took a shed load to the Philippines on the relief mission. If the Filipinos in such a desperate state don't want to eat it, maybe can use the sacks of rice like sand bags or walls for temporary shelters. At least get something worthwhile out of it.

[JRSoul]

OK, let's assume there are natural disasters in the other rice producing countries. If they were to double their sales of their best rice, they would still make a huge financial loss and be stuck with the older rice in storage, rapidly declining in value.

Or, they could force the price up to somewhere near what they paid, and be lucky to sell all of the current crop with farmer's producing manically. And still be stuck with the older rice in storage, rapidly declining in value.

Edited November 20, 2013 by JRSoul

[Fiddlesticks]

They will likely lose money on every ton they sell but they will make up for it in volume!

[fab4]

This cannot happen under the current circumstance.

So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping.

Or they dump the rice pledging scheme to compete globally and raise the ire of the farmers that git them elected.

...or potentially, the Govt to Govt swap deals for Chinese high speed railway components disguise the deals as they pay over the odds for railway stuff.

Regardless, something's gotta give.

"So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping."

Why would that raise the ire of the Global Rice community? The rice will be sold at a loss(of what the Thai Government paid) but sold at the global price rate (what everybody else pays). It's a form of what's called an agricultural subsidy. Most countries have agricultural subsidies.

[Neilly]

Posted Today, 10:38

Thailand to reclaim world's leading rice exporter role next year

I see that it says 'exporter'...no mention of the word 'profit' or even 'break-even' in the article

[chainarong]

If this was a horse race i'd rather keep my money, than have a bet, this horse is heavily over weight and needs a good trainer.

[givenall]

Thailand HUB of claims and reclaims

[JRSoul]

"So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping."

Why would that raise the ire of the Global Rice community? The rice will be sold at a loss(of what the Thai Government paid) but sold at the global price rate (what everybody else pays). It's a form of what's called an agricultural subsidy. Most countries have agricultural subsidies.

Not having time to teach you Economics 101, I will simplify it. To sell more than anyone else, you have to have the lowest price. When that price is some 40+% below what you paid for that commodity, it will be called 'dumping'. Not to be confused with 'dumplings', which are different.

[Artisi]

Just another day in the life of Thai politics. All p_iss and wind like a drovers mangy dog.

[casindonet]

How? By selling their almost rotten rice stocks at a very-very low price?

[spirit47]

How? By selling their almost rotten rice stocks at a very-very low price?

Easy, they sell to normal prices to the Chinese, and for the Highspeed railway the pay double price. And in the newspapers you find only:"Chinese buy 2 million tons of rice to worldmarket price"

[chooka]

yea right the world on the brink of war in an effort to buy all that rotting contaminated rice from Thailand. It has been sitting in wharehouses for 2 yrs without buyers.

[smutcakes]

This is probably all bluster, but people on TVF would be sick as dogs if this transpired to actually happen.

[JRSoul]

This is probably all bluster, but people on TVF would be sick as dogs if this transpired to actually happen.

Only if they ate some of that 'matured' rice.

[fab4]

"So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping."

Why would that raise the ire of the Global Rice community? The rice will be sold at a loss(of what the Thai Government paid) but sold at the global price rate (what everybody else pays). It's a form of what's called an agricultural subsidy. Most countries have agricultural subsidies.

Not having time to teach you Economics 101, I will simplify it. To sell more than anyone else, you have to have the lowest price. When that price is some 40+% below what you paid for that commodity, it will be called 'dumping'. Not to be confused with 'dumplings', which are different.

But if you're providing rice in a market where there is a shortage of rice from the usual providers because of natural disasters and draught or as is the case from India who are coming to the end of their massive stockpiling, you're not dumping, you're making up the shortfall.

These countries that want rice are not going to buy it off of you because you have paid 40% more to your own rice farmers but you're selling it to them cheap? Sorry, even with my limited economics 2 + 2, I really don't think they are going to care a jot what you paid for it to be produced or how.

[JRSoul]

"So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping."

Why would that raise the ire of the Global Rice community? The rice will be sold at a loss(of what the Thai Government paid) but sold at the global price rate (what everybody else pays). It's a form of what's called an agricultural subsidy. Most countries have agricultural subsidies.

Not having time to teach you Economics 101, I will simplify it. To sell more than anyone else, you have to have the lowest price. When that price is some 40+% below what you paid for that commodity, it will be called 'dumping'. Not to be confused with 'dumplings', which are different.

But if you're providing rice in a market where there is a shortage of rice from the usual providers because of natural disasters and draught or as is the case from India who are coming to the end of their massive stockpiling, you're not dumping, you're making up the shortfall.

These countries that want rice are not going to buy it off of you because you have paid 40% more to your own rice farmers but you're selling it to them cheap? Sorry, even with my limited economics 2 + 2, I really don't think they are going to care a jot what you paid for it to be produced or how.

Dumping is a claim made by other sellers, not by the buyers. If it is upheld, sanctions will be applied by the WTO (you know, not my father).

How does the world go from a glut to a shortfall? Has somebody's fortune teller told him what he wants to hear?

[rubl]

"So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping."

Why would that raise the ire of the Global Rice community? The rice will be sold at a loss(of what the Thai Government paid) but sold at the global price rate (what everybody else pays). It's a form of what's called an agricultural subsidy. Most countries have agricultural subsidies.

Not having time to teach you Economics 101, I will simplify it. To sell more than anyone else, you have to have the lowest price. When that price is some 40+% below what you paid for that commodity, it will be called 'dumping'. Not to be confused with 'dumplings', which are different.

But if you're providing rice in a market where there is a shortage of rice from the usual providers because of natural disasters and draught or as is the case from India who are coming to the end of their massive stockpiling, you're not dumping, you're making up the shortfall.

These countries that want rice are not going to buy it off of you because you have paid 40% more to your own rice farmers but you're selling it to them cheap? Sorry, even with my limited economics 2 + 2, I really don't think they are going to care a jot what you paid for it to be produced or how.

The rice price pledging scheme was set up to let (some) Thai profit. With the MoC saying

"A total of Bt164 billion will be paid this year and the ministry plans to return Bt130 billion next year, at an average Bt12 billion per month."

it means most of the 660 billion Baht spent in two year is lost.

As for selling at market prices, the government has been very reluctant and very quiet in providing details.

[GAZZPA]

"So, either they dump the rice at less than they paid and cost Thai taxpayers money and raise the ire of the Global rice community for price dumping."

Why would that raise the ire of the Global Rice community? The rice will be sold at a loss(of what the Thai Government paid) but sold at the global price rate (what everybody else pays). It's a form of what's called an agricultural subsidy. Most countries have agricultural subsidies.

Not having time to teach you Economics 101, I will simplify it. To sell more than anyone else, you have to have the lowest price. When that price is some 40+% below what you paid for that commodity, it will be called 'dumping'. Not to be confused with 'dumplings', which are different.

Erm, no that's not right. IF the rice is sold at the market rate then it can not be called "dumping". Dumping is when they push a commodity product into the market trashing current rates and damaging the market. It doesn't matter how much money Thailand lose to the International community but the fear is because the stock pile is so huge sooner or later they will need to massively increase their exports and that they may "dump" the rice to do exactly that.

[eddie61]

How sweet! What a lovely little dick-head.

I am JUST dying to get my hands on those bonds, as I lub PTP too mut!

I hope Mr T him lub bonds him too mut, and lub Thailan him buy 75 billion baht bond

Or maybe Mr. T him short rite future, cos him lub monee more dan him lub Thailan

Edited November 20, 2013 by eddie61