Thailand fails to achieve rice export target

[webfact]

Thailand fails to achieve rice export target
By Digital Content



BANGKOK, Jan 2 – Thailand's Commerce Ministry has projected this year’s rice exports at no less than eight million tonnes despite a failure to achieve the export target at 8-8.5 million tonnes last year.

Surasak Riangkrul, director general of the Foreign Trade Department, said the department will penetrate present and new markets especially in South Africa, Russia and several more potential countries and hoped to achieve rice export growth of 19.8 per cent, or a total value of US$4.8 billion, this year.

The department will propose a new rice marketing plan to the next government before pushing forward with rice sales in the global market.

He admitted lower-than-projected rice exports between January and December 16 when 6.4 million tonnes were shipped out to foreign buyers, at a value of $4.208 billion or an average $657 per tonne.

The total export volume was short of the projected 8-8.5 billion tonnes owing to the high price of Thai rice compared to competitors and fierce competition in the global market, he said. (MCOT online news)


-- TNA 2014-01-02

[Costas2008]

That's a surprise!

[Tatsujin]

What a bunch of complete and utter morons . . . stupid policy, stupid people that came up with it . . . unless of course they got their cut out of it and sod everyone else . . . oh they did!

[Local Drunk]

It'd be worth getting this government out just to get the real numbers on this rice pledging scheme.

[Old Man River]

It had been announced that Thailand would use some of the rice stocks as barter in exchange for China's expertise in building the new high speed train which has now been put on hold.

In addition, while I am sure the sales price of the rice was denominated in USD's, what is not known is whether the Thai government had hedged the exchange rate (locking in the sales price in USD's at the time of the contract).

[LuckyLew]

Great scam Thaksin ... you are a genious ... ooops sorry ... great scheme Thaksin ....

PTP the Please Thaksin Party

[soi41]

"or an average of $ 657 per tonne"

Yeah sure the world is lining up to buy Thai rotten and rat-infested rice at $ 657, when both India and Vietnam are selling prime-grade at below $ 500!!

The truth (goggle it Mr Surasak!) is probably closer to $ 300 in bartertrades, with the payment in worthless Chinese junk!!

The good news Mr Surasak! I found just the right job for you. TAT is looking to recruit a new prognosismaker!

[Scamper]

The sinking of the Thai economy really begins here. Well done, Surasak !

[aguy30]

"6.4 million tonnes were shipped" "short of the projected 8-8.5 billion tonnes" So about 20% short for this year and still so much in warehouses from the old crops.

"hoped to achieve rice export growth of 19.8 per cent" That would still be how much short of what is being purchased by the rice scam? Will they pay more the market value?

That report is a poorly written with (intentional?) little usable info. Just a few numbers thrown out to see if they stick. Exactly how many tons of each kind of rice where sold to who, from which crop and at what average purchase and sales prices for each kind, would have been proper reporting and news release.

Sounds like mismanagement to me. Only idiots or a corrupt government with hidden and deceptive motives would KNOWINGLY pay far too much for a commodity without expecting to sell at a loss. The problem is the old "face saving" Thainess and that they won't even sell at a loss. Better to let it rot.

How many tons are still sitting in the warehouses and from which crop? What's the plan to get rid of it? Is there even a plan?

The government could at least send a large quantity to the Philippine typhoon sufferers and write it off the books at full valve. There are also hungry people in other countries that really need food. Give it to them! Give it to poor hungry Thais. That would be a good Buddhist thing to do.

How much of the stored rice is inedible/unsalable for whatever reasons and also how much of it has already been disposed of?

What is the cost of storage and handling per ton?

I can hardly wait to see what will happen to the 2.3 trillion baht "high speed train" (not Euro style bullet trains) project. Probable will have solid gold feeding troughs and very high priced cars with solid gold trim for politicians and their friends.

[aguy30]

What a bunch of complete and utter morons . . . stupid policy, stupid people that came up with it . . . unless of course they got their cut out of it and sod everyone else . . . oh they did!

Or is it genius for PTP to BUY the election with the government and tax payers money and not spending their own money? The voters-stupid for sure but they got some reward for their votes.

[culicine]

The high price of Thai rice...whose fault is that then? Bloody idiots...of course the competition is fierce when its priced more than all their competitors! Expect more of the same in the future.

[theslime]

"or an average of $ 657 per tonne"

Yeah sure the world is lining up to buy Thai rotten and rat-infested rice at $ 657, when both India and Vietnam are selling prime-grade at below $ 500!!

The truth (goggle it Mr Surasak!) is probably closer to $ 300 in bartertrades, with the payment in worthless Chinese junk!!

The good news Mr Surasak! I found just the right job for you. TAT is looking to recruit a new prognosismaker!

Darts_in_a_dartboard.jpg

I read the other day that Australian Rice was $280 a tonne, import into Thailand as part of freetrade, and bobs ya uncle.

[ggold]

It had been announced that Thailand would use some of the rice stocks as barter in exchange for China's expertise in building the new high speed train which has now been put on hold.

In addition, while I am sure the sales price of the rice was denominated in USD's, what is not known is whether the Thai government had hedged the exchange rate (locking in the sales price in USD's at the time of the contract).

That's funny You think these people care about hedging exchange rates when it's going into their own pockets. I doubt any of them could even think that far ahead even if it was a legitimate scheme and not the scam it's turned into.

[ggold]

If Bullsh*t was a commodity, I'm sure that Thailand could sell it at a high price, It would probably be quoted in Baht, being the hub and all that!

[Old Man River]

It had been announced that Thailand would use some of the rice stocks as barter in exchange for China's expertise in building the new high speed train which has now been put on hold.

In addition, while I am sure the sales price of the rice was denominated in USD's, what is not known is whether the Thai government had hedged the exchange rate (locking in the sales price in USD's at the time of the contract).

That's funny You think these people care about hedging exchange rates when it's going into their own pockets. I doubt any of them could even think that far ahead even if it was a legitimate scheme and not the scam it's turned into.

I was being nice, although actually I was thinking if they sold any during the slide in the THB, the gain would offset some of the loss that will show up do to their accounting game as they try to show a higher asset value. Of course this kind of stuff is small potatoes next to the major loss of buying high and selling low.

[Old Man River]

"or an average of $ 657 per tonne"

Yeah sure the world is lining up to buy Thai rotten and rat-infested rice at $ 657, when both India and Vietnam are selling prime-grade at below $ 500!!

The truth (goggle it Mr Surasak!) is probably closer to $ 300 in bartertrades, with the payment in worthless Chinese junk!!

The good news Mr Surasak! I found just the right job for you. TAT is looking to recruit a new prognosismaker!

Darts_in_a_dartboard.jpg

I read the other day that Australian Rice was $280 a tonne, import into Thailand as part of freetrade, and bobs ya uncle.

This website shows the global prices:

http://oryza.com/news/thailand-exports-59-million-tons-rice-january-%25E2%2580%2593-november-2013

[Robby nz]

Someone asked about handling costs.

They were reported elsewhere today at 90 billion B which brought the total spent by the Govt to 780 billion B with 200 Billion returned from sales.

[Ulic]

Missed your target, really? Any TV reader could have told you you would miss your target 2 seconds

after you announced said target. And most of us aren't that bright.

[BudRight]

I've never understood the wisdom of settings targets for someone else's behavior.

[hellodolly]

Great scam Thaksin ... you are a genious ... ooops sorry ... great scheme Thaksin ....

PTP the Please Thaksin Party

I like that.

[JoeThePoster]

........department will propose a new rice marketing plan.......

It's gonna be something brilliant like selling by counting grains instead of by weight.

[DLock]

When the farmers wake up and realize that PTP artificially paid them for their votes, while at the same time destroyed the Thai rice market, so that when the scamheme ends they have no market for their rice, and have to return that new Vigo and lend money from the loan sharks, the better.

But they are living for today.

[tomacht8]

Yes this is matching with my calulations:

This is only the prelude for a financial disaster.

I guess the loss on 680 Billion + 180 Billion

minus rotten Stockpile – 12 Billion Cash in BAAC – outstanding 80 Billion loans
= around 800 Billion Baht loss. (The BAAC is going bankruptcy)

+ unknown Flood fund money 350 Billion (ti nai?)

+ Car scheme (more and more can no longer finance their loans)

+ the future rice harvest, which must then be sold to a large extent on the world market.

Many farmers will then make losses because their production costs are higher than the world market price.
Many farmers will lose then their land.

If that is published among the farmers, then good night.

With this money they could modernize all schools and public hospitals in Thailand.

Could?

Sorry this money is already gone, burned in idiocy.

[allan michaud]

The government could at least send a large quantity to the Philippine typhoon sufferers and write it off the books at full valve. There are also hungry people in other countries that really need food. Give it to them! Give it to poor hungry Thais. That would be a good Buddhist thing to do.

Yes, nice idea. Except Thaksin actually said in an interview that he was expecting global catastrophes that would drive the price of rice up and they could then sell it at a premium to desperate countries... I'm paraphrasing but that was the jist of it. What I nice chap?

[Chao Lao Beach]

And thiw is news? It WOULD be news if they did hit the target

[aimbc]

Yes this is matching with my calulations:

This is only the prelude for a financial disaster.

I guess the loss on 680 Billion + 180 Billion

minus rotten Stockpile – 12 Billion Cash in BAAC – outstanding 80 Billion loans

= around 800 Billion Baht loss. (The BAAC is going bankruptcy)

+ unknown Flood fund money 350 Billion (ti nai?)

+ Car scheme (more and more can no longer finance their loans)

+ the future rice harvest, which must then be sold to a large extent on the world market.

Many farmers will then make losses because their production costs are higher than the world market price.

Many farmers will lose then their land.

If that is published among the farmers, then good night.

With this money they could modernize all schools and public hospitals in Thailand.

Could?

Sorry this money is already gone, burned in idiocy.

I will bet anything that the spoil rice are actually rice that they sold out the back door for themselves. This way it's very hard to audit the missing rice. They will just claim it as "Spoiled Rice" that they removed. That is why they are so reluctant to come up with any solid figures. The longer they can keep the rice in the warehouse, the higher the percentage of spoiled rice will become. Great alibi. If most can remember, the first year they had missing rice, and the Minister of Commerce had no clue. Of course he had no clue in the first place, as he was placed there as his deal for helping Thaksin.

[Jay Sata]

Who cares about these scams. Let's just enjoy the gravy train as the Shin's led by Khun Thaksin take the baht to lows where '97 will look like a boom.

[PeVee1st]

The PTP could not hit a target as big as a barn with a handful of rice.

It is time for the New Year "fire sale". Sell, sell at whatever price U can get, but we know the man in Dubai is too smart for that to occur, he is still masterminding control of the rice market!!!

Other writers are correct the Thai rice industry and the poor farmer are DOOMED!!

[aimbc]

What a bunch of complete and utter morons . . . stupid policy, stupid people that came up with it . . . unless of course they got their cut out of it and sod everyone else . . . oh they did!

Or is it genius for PTP to BUY the election with the government and tax payers money and not spending their own money? The voters-stupid for sure but they got some reward for their votes.

Sad....but true.

[aimbc]

The PTP could not hit a target as big as a barn with a handful of rice.

It is time for the New Year "fire sale". Sell, sell at whatever price U can get, but we know the man in Dubai is too smart for that to occur, he is still masterminding control of the rice market!!!

Other writers are correct the Thai rice industry and the poor farmer are DOOMED!!

They are Doomed. One of the many reason they can't sell the rice is because a lot of the rice are bad quality. When the government proposed a high buying price, quantity and not quality was on the farmer's mind. They would spray extra pesticide to make sure they had the highest yield. This caused a lot of low confidence by the buyers. And then you add old rice into the mix. But also the buyer knows that Thailand has excess stock of rice, so they are going to try and get the lowest price possible because Thailand is desperate to raise funds. These are just the short term issue.

The long term of course is that the money that was allocated to this program will cause other program to be placed on hold. But the industry will suffer the most and the farmer as well. The program caused the price of supplies to go up, because suppliers knew the farmers were making more now, so they will raise the prices. But once the program is over and they go back to the world price, the cost for supplies are not going to reduce. According to estimate(true number are not known as the government refuses to disclose data) About 1.8 million of the 4 million rice farmers took advantage of the program. The other 2.2 million farmers do not qualify because they simply do not grow enough. This are the group that will get hurt the most. And Thai rice will take several years to recover.

BBC News

http://www.youtube.com/watch?v=Vwa_kzOMb6s

Thai Economist on the Rice Scheme

http://www.youtube.com/watch?v=hNgHkJKCr3E

As a forewarning, if anyone want has a rebuttal, please contact YS or the government and have them disclose the data to the public so they can be better inform.