Thai govt told to urgently sell stockpiled rice

[Mudcrab]

Besides the idea to sell the rice before it rots, it would be a good idea to try to get back the money (or parts thereof),

which are lost only by corruption and nepotism.

In addition I guess between 200 - 300 Billion Baht corruption has cost.

I'm sure if they would trace the flow of money they could win more than 130 Billion Baht back,

but this government does not disclose the facts, the figures and the receivers.

Why?

I know many know the answer.

The money is there to pay the farmers, but it is now in dubious pockets!

Furthermore, why are the production costs increased so dramatically?

Simple,

many farmers have to rent their farmland.

The large land owners (they are elite too) have until now, every year increased the land rents, always to the threshold of pain.

Many many farmers sitting now in the debt trap.

The damage from this senseless scheme is so gigantic that Thailand has lost its competitiveness for years to come.

If all these landless farmers come with their pitchforks to Bangkok, then good night Thailand.

Any links to the large landowners, elite? Around these parts it's family farms. Where are the large land owners operating?

http://farmlandgrab.org/post/view/20882

A survey conducted in the Central region by The Nation showed that most of the farmland was owned by Thai landlords who leased plots of up to 10 rai (1.6 hectares) to small-scale farmers. Yet over the past few years, those in the rice business have been claiming that foreigners, particularly investors from the Middle East, have been buying up farmland via nominees.

As per The Nation survey, Thailand has 60 million rai devoted to rice farming and 60 per cent of this is owned by farmers, while the rest is handled by landlords and businesspeople, and some foreigners.

- See more at: http://farmlandgrab.org/post/view/20882#sthash.28cNX7iV.dpuf

Thanks for that. Seems foreigners might not be able to own land...but can certainly control it.

[worgeordie]

But the big boss said we will set the market price. What went wrong???

If Thai farmers are only 45% efficient as there Vietnamese opposition in the rice trade, then A Government neefs to look at that problem.

Maybe adopting farlang farming methods may help!!!!

5555555 but we know that will happen !!!!! Soon !!!!!!!

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He must not have realized that Thailand does not have a monopoly

on rice, unlike the businesses he ran. big mistake.

regards Worgeordie

[jimbeam1]

200 million bt from the sale of rice is nowhere near enough for the government to pay the farmers the 130 million bt they are owed.They need their cut.

jb1

[pmugghc]

Thats like Thai Airways economics, it´s better to keep your old rotting A340 planes in the books with your own estimated fantasy value, so you can call it an asset and say: Hey we don´t have losses from it.

I think you hit the nail on the head! The obvious solution is to sell the rice but then the government would have to go public on the enormous losses, due to 1) lower price 2) lost/stolen stockpiles and 3) unacceptable quality due to insects, rotten etc.

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[tomacht8]

200 million bt from the sale of rice is nowhere near enough for the government to pay the farmers the 130 million bt they are owed.They need their cut.

jb1

Billion not Million Baht!

[mikemac]

And the government sells the stockpiled rice at a price undercutting the international rice prices, and 10 - 1 on, the dems would complain and file a court case for malfeasance or similar............

Typical idiotic post from fabio, change your bait if you want to get some real good bites, your bait is getting old and stale.

[Robby nz]

All that is assuming;

A, that there is 18 million tons there.

B that it all in saleable condition

C, that someone would be willing to buy it.

The dumping question aside, there is at present a global glut with new exporters like Brazil and Argentina coming into the market.

The quality would certainly be in question as Ivory Coast and Iran will no longer buy Thai rice and the US returned a shipment, then there is the supposed deal with China that would raise other questions with prospective buyers.

They haven't had much joy with selling by the last auctions with less than half being sold.

Add to that the new seasons crop which is coming on (some being harvested now) would be in direct competition and would be much more desirable than stored crop.

The traders will now have the opportunity to buy the new crop directly from the farmers as they wont trust the Govt anymore, this means the traders can get the rice even cheaper than that from the Govt as the farmers have been forced into a debt situation by non payment and will be desperate for money.

The farmers will still have the interest on the loans they have been forced to take out to pay off and with being forced to accept low prices will be screwed from all directions.

Go Yingluck champion of the poor farmers.

Add to that the new seasons crop which is coming on (some being harvested now) would be in direct competition and would be much more desirable than stored crop.

It's all ok. They can mix it. Nobody will ever know.

All the rice was harvested around here in November/December? Where do you live?

I live on the central plain and I took this photo on the 5th of this month, three days ago.

As you can see that paddy is getting close to harvest, most here is less mature, not yet at the seed head stage while a few others have already been harvested.

This month and next will be the main harvest time here for this crop and if they do as they have done in the past the paddy will be worked up immediately and a new crop planted.

However I would imagine that will depend on whether they get paid or not.

[noahvail]

Just wonderin... what are our Brothers and Sisters in ASEAN doing to help Thailand in its time of need?

[Basil B]

Have they calculated for "shrinkage"???

Them warehouses that they have been hiring and not paid have back doors...

[espinoza]

Govt told to urgently sell stockpiled rice

By Digital Content

BANGKOK, Feb 8 – The caretaker government was recommended to urgently release 18 million tonnes of rice from the state stockpiles to secure money to pay farmers.

Att Pisanwanit, Director of the Center for International Trade Studies (ITS) of the University of the Thai Chamber of Commerce (UTCC), said the government should accept losses by selling rice at US$350-400 per tonnes, lower than the price currently offered by Vietnam, to earn about Bt200 billion which should be more than sufficient to pay the current Bt130 billion overdue payments.

The government can spend the remaining Bt70 billion raised to help farmers in other agricultural products such as rubber and tapioca, he said.

Mr Att, dean of the UTCC Faculty of Economics, said that in the last decade since the Thaksin Shinawatra government in 2001, the Thai government has allocated a total of Bt1.5 trillion to help farmers and the Yingluck Shinawatra government has become the biggest spender at Bt700 billion, or more than half of budget expenses.

Production costs for Thai farmers between 2006 and 2012 have increased 60 per cent, from Bt4,000/rai to Bt9,000/rai but the yield per rai has not been higher.

Thailand’s yield per rai for rice production is only one-third of the Vietnamese, he said, adding that Thai farmers produce 450 kg of rice per rai while the Vietnam’s rice production is one tonne per rai.

Mr Att said the government should adjust its long-term assistance policy for farmers by refraining from rice trading intervention and offering appropriate assistance options for farmers. (MCOT online news)

-- TNA 2014-02-08

Sorry, but I think the government has bright enough brains to figure out this at their own. They are not totally embissiles.

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[espinoza]

200 million bt from the sale of rice is nowhere near enough for the government to pay the farmers the 130 million bt they are owed.They need their cut.

jb1

Billion not Million Baht!

Are you sober :-)

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[Basil B]

Just wonderin... what are our Brothers and Sisters in ASEAN doing to help Thailand in its time of need?

Probably nothing as Thailand's problems are self inflicted...

Of course Thailand has some leverage, if it were to consult with other rice producing countries and the IMF about it's need to raise capitol and it's only option was to dump 18m tonnes of rice on the open market I am sure a solution would be found in the way of a loan and and subsidy for it to be sold off as animal feed.

[trogers]

Production costs for Thai farmers between 2006 and 2012 have increased 60 per cent, from Bt4,000/rai to Bt9,000/rai but the yield per rai has not been higher.

This is the double whammy, compliments of this govt - increase in production cost due mainly to raising the minimum wage and increase in cost of fertilizers. and a fall in market price for rice.

The next harvest of jasmine rice is a loss making affair - Bt9,000 cost to produce 450kg = Bt20,000/tonne cost.

And selling at a market price of Bt16,000/tonne?

[BSJ]

"If Thai farmers are only 45% efficient as there Vietnamese" Coming from a different angle: If the Thai farmers were as efficient as the Vietnamese, wouldn't the 18 million ton stockpile be a 40 million ton stockpile. That's really scary when you think about it! Thank goodness Thai farmers are less efficient!

[BSJ]

"If Thai farmers are only 45% efficient as there Vietnamese" Coming from a different angle: If the Thai farmers were as efficient as the Vietnamese, wouldn't the 18 million ton stockpile be a 40 million ton stockpile. That's really scary when you think about it! Thank goodness Thai farmers are less efficient!

[speedtripler]

"If Thai farmers are only 45% efficient as there Vietnamese" Coming from a different angle: If the Thai farmers were as efficient as the Vietnamese, wouldn't the 18 million ton stockpile be a 40 million ton stockpile. That's really scary when you think about it! Thank goodness Thai farmers are less efficient!

what size are these storage places ? 18 million tonnes of rice sounds like enough to build a new mountain .......

[tobf16]

But the big boss said we will set the market price. What went wrong???

If Thai farmers are only 45% efficient as there Vietnamese opposition in the rice trade, then A Government neefs to look at that problem.

Maybe adopting farlang farming methods may help!!!!

5555555 but we know that will happen !!!!! Soon !!!!!!!

Sent from my GT-I8160 using Thaivisa Connect Thailand mobile app

Fariang farming methods can only be used on large corporate farms. Planting rice with a machine would put the average rice farmer into a cost they can not afford. The ROI would not justify the expense. Spreading fertilizer pesticides and herbicides with an air plane, how much does that cost.

The present rice pledging could cause the average farmer to lose his land because of non performing loans. There by corrupt politicians could take the land and set up large corporate farms. They would need some help from their friends in the UAE.

Some farmers where I live have recently started using rice planting machines on just a few rai of paddy. If it weren't profitable they wouldn't be doing it.

I have actually asked some family farmers about that. They would hire in machines together with others for their rice fields, since each parts lands were to small to carry the machines. The problem is everybody needs it at the same time so the price goes up.

I asked them how much they spent a year/per harvest for machines from outside, fertilizer, outside hands working per day, electricity for water pumps etc.

The whole family (quite big) had no idea. Nobody ever made the math to see if rice was the right thing to grow. They had done it for generations, so they still did it and as they said, they ate their own rice as well and then had rice for all the dogs running around also.

When I did the math with the prices I got from them, they worked for free and probably lost money, and would be better off, growing something else with some cash flow like vegetables.

This happened in Ubon area and they only have one harvest a year, so other places the numbers might add up better.

My point however is more, they just do as they always did, but didn't do the math, so about what they do is being profitable or not, I am not so sure, that is clear to all of them.

When I tried to bring it up in a gentle and humble way, nobody really cared. This was 4 years ago and they still grow rice once every year.

[tomyummer]

This is exactly what the other rice countries were afraid of for over a year since when Thailand dropped to number three in export of rice. They knew Thailand was going to need to dump their overstocked rice into the market. It wasn't a secret that this was to come.

[speedtripler]

But the big boss said we will set the market price. What went wrong???

If Thai farmers are only 45% efficient as there Vietnamese opposition in the rice trade, then A Government neefs to look at that problem.

Maybe adopting farlang farming methods may help!!!!

5555555 but we know that will happen !!!!! Soon !!!!!!!

Sent from my GT-I8160 using Thaivisa Connect Thailand mobile app

Fariang farming methods can only be used on large corporate farms. Planting rice with a machine would put the average rice farmer into a cost they can not afford. The ROI would not justify the expense. Spreading fertilizer pesticides and herbicides with an air plane, how much does that cost.

The present rice pledging could cause the average farmer to lose his land because of non performing loans. There by corrupt politicians could take the land and set up large corporate farms. They would need some help from their friends in the UAE.

Some farmers where I live have recently started using rice planting machines on just a few rai of paddy. If it weren't profitable they wouldn't be doing it.

I have actually asked some family farmers about that. They would hire in machines together with others for their rice fields, since each parts lands were to small to carry the machines. The problem is everybody needs it at the same time so the price goes up.

I asked them how much they spent a year/per harvest for machines from outside, fertilizer, outside hands working per day, electricity for water pumps etc.

The whole family (quite big) had no idea. Nobody ever made the math to see if rice was the right thing to grow. They had done it for generations, so they still did it and as they said, they ate their own rice as well and then had rice for all the dogs running around also.

When I did the math with the prices I got from them, they worked for free and probably lost money, and would be better off, growing something else with some cash flow like vegetables.

This happened in Ubon area and they only have one harvest a year, so other places the numbers might add up better.

My point however is more, they just do as they always did, but didn't do the math, so about what they do is being profitable or not, I am not so sure, that is clear to all of them.

When I tried to bring it up in a gentle and humble way, nobody really cared. This was 4 years ago and they still grow rice once every year.

maybe they dont know how to grow anything else ,its rice or nothing as far as their thinking goes

[jimbeam1]

200 million bt from the sale of rice is nowhere near enough for the government to pay the farmers the 130 million bt they are owed.They need their cut.

jb1

Billion not Million Baht!

Are you sober :-)

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OMG Can I ever be forgiven.

Million, Billion the figures are the same.

Just a slight hiccup? Lol

Jb1

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[bunnydrops]

quote

Some farmers where I live have recently started using rice planting machines on just a few rai of paddy. If it weren't profitable they wouldn't be doing it.

I have actually asked some family farmers about that. They would hire in machines together with others for their rice fields, since each parts lands were to small to carry the machines. The problem is everybody needs it at the same time so the price goes up.

I asked them how much they spent a year/per harvest for machines from outside, fertilizer, outside hands working per day, electricity for water pumps etc.

The whole family (quite big) had no idea. Nobody ever made the math to see if rice was the right thing to grow. They had done it for generations, so they still did it and as they said, they ate their own rice as well and then had rice for all the dogs running around also.

When I did the math with the prices I got from them, they worked for free and probably lost money, and would be better off, growing something else with some cash flow like vegetables.

This happened in Ubon area and they only have one harvest a year, so other places the numbers might add up better.

My point however is more, they just do as they always did, but didn't do the math, so about what they do is being profitable or not, I am not so sure, that is clear to all of them.

When I tried to bring it up in a gentle and humble way, nobody really cared. This was 4 years ago and they still grow rice once every year.---End of quote

I have done the math for my family's farm. If they counted the many hrs they put in----They are losing money, but they don't count that in. It is what they eat, what they give to the extended family living in the city. Here it is one crop a year. Some have tried to grow something else but water and insects are a problem.

Edited February 8, 2014 by bunnydrops

[Crushdepth]

Even if this can be done, how would such a policy be viewed by the World Trade Organization (never mind Vietnam and India)? Wouldn't it be classified as "dumping"? And if it was dumping, how would this affect the Thai government under international law?

Quite likely, and it could result in some countries applying punitive tariffs to Thai rice exports. Happened with shrimp in the past (I'm not sure that one was deserved, but this one would be). US government has already threatened WTO action.

[BigRick]

I think this will be great living in Thailand. Now we are all enjoy the highest qualities of rice for rock bottom prices(No joke). It would be great to try all the really rare rice strains even they will be discounted with the flood of rice coming.

[i claudius]

Thailand ,the hub of rice corruption ,sorry.i meant production.

[pmugghc]

The whole family (quite big) had no idea. Nobody ever made the math to see if rice was the right thing to grow.

My point however is more, they just do as they always did, but didn't do the math, so about what they do is being profitable or not, I am not so sure, that is clear to all of them.

I had the same experience in the Philippines 10 days ago, down in Samar. Tried to teach the daughter of my deceased friend some simple business planning, this time about coconuts. Turned out she would get less than 5% ROI in the best case. With typhoons and other disasters less. Many just think of income vs cost, don't bother about capital invested.

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[Lucie]

someone didnt study much mathmathics before writing this crap ,since when was 450kg / from 1000kg a third ?

Also: "Production costs for Thai farmers between 2006 and 2012 have increased 60 per cent, from Bt4,000/rai to Bt9,000/rai"...

[Chao Lao Beach]

Ladies and Gentleman, rice for sale:

tulsathit ‏@tulsathit14h

This may sum rice scheme up. RT @PatricLand: Govt rice warehouse in Lopburi

Bags of cooked Thai rice ?

How much ?

[Trouble]

There was already a reported fear of Thailand dumping the stockpile onto the world market. I'm not sure how that would go over with the other rice growing countries. But I am sure they could sell some at a low price.

Agree. Dumping would not be seen favorably and while I am not familiar with the different kinds of rice and the prices, it seems that if there is an oversupply whether from the farmers or the government it will cause the price to drop worldwide for that particular kind of rice. If there are too many farmers selling rice then the world price is going to drop anyway. Think the Thai government needs to start selling off the rice in stages so as not to be seen as literally dumping the whole load at once. But they need to get started. There is going to be a loss anyway and when the farmers have a new crop the government cannot continue to just buy everything at inflated prices. The situation will only get worse the longer this goes on.

[Docno]

But the big boss said we will set the market price. What went wrong???

If Thai farmers are only 45% efficient as there Vietnamese opposition in the rice trade, then A Government neefs to look at that problem.

Maybe adopting farlang farming methods may help!!!!

5555555 but we know that will happen !!!!! Soon !!!!!!!

Sent from my GT-I8160 using Thaivisa Connect Thailand mobile app

Is this an efficiency problem or a climate issue? I'm not expert on rice farming, but I believe much of Isaan is limited to one harvest per year due to climatic conditions. Having been up and down Vietnam, I would assume that the situation is better there ... much lusher environment. Not sure how feasible / cost-effective irrigation is for Isaan....

[surangw]

the whole show is getting stale with no new plot or story line.