Thai Commerce Ministry is confident it would sell 1 million tons of rice monthly

[webfact]

Commerce Ministry is confident it would sell 1 million tons of rice monthly

BANGKOK, 25 Feb 2014, According to the Director General of the Department of Foreign Trade (DFT) Surasak Riengkrue, the Commerce Ministry is confident that it will be able to sell a million tons of rice monthly and generate enough revenue to cover the pending rice support program money owed to farmers.

Mr. Surasak claims that another batch of 800,000 tons of stockpiled rice will be sold between late February and early March. Of that 300,000 tons will be auctioned in the first two weeks to local rice mills for domestic consumption. He said another 300,000 tons would be sold to international trading partners, and the remaining 200,000 tons will be auctioned through the Agricultural Futures Exchange of Thailand (AFET).

Earlier authorities sold 600,000 tons of rice, netting a profit from the transactions in February of 20 billion baht. Mr Surasak reassured rice farmers that his department would do its best to sell the rice stockpiles so that it can obtain all the funds needed to pay out the government’s delayed rice mortgage scheme debt.


-- NNT 2014-02-25

[JesseFrank]

Earlier authorities sold 600,000 tons of rice, netting a profit from the transactions in February of 20 billion baht.

So I assume that the rice now is sold at 33.000 Baht per tonne, about 4 times the world market price.

Well, if small white lies don't work anymore, you need to get in the big artilleries

[andygunther]

It is obvious that it is possible to sell the rice, but at what loss?

[scorecard]

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Earlier authorities sold 600,000 tons of rice, netting a profit from the transactions in February of 20 billion baht.

So I assume that the rice now is sold at 33.000 Baht per tonne, about 4 times the world market price.

Well, if small white lies don't work anymore, you need to get in the big artilleries alt=coffee1.gif width=32 height=24>

20billion income a month, (figures very doubtful as per post #2), then that's about 6.5 months to generate 130Billion Baht.

I'm sure the unpaid farmers, many already unpaid for 6 months, will be really happy with this plan.

[RockyBeerbelly]

Earlier authorities sold 600,000 tons of rice, netting a profit from the transactions in February of 20 billion baht.

So I assume that the rice now is sold at 33.000 Baht per tonne, about 4 times the world market price.

Well, if small white lies don't work anymore, you need to get in the big artilleries

NO, no! the article mentions a PROFIT of 20billion, so only the profit for the govt is 33,000THB.....

[Mister Fixit]

In their dreams ...

[uty6543]

So the farmers will be back next week. Unless they are willing to wait and wait and wait............

[JesseFrank]

So the farmers will be back next week. Unless they are willing to wait and wait and wait............

Gonna get boring for those farmers.

U-turn at the airport, U-turn as soon as they arrive home en probably another U-turn when they arrive back in Bangkok.

[Bocking]

Bt20 billion PROFIT? ..

That's impressive, selling Rice for Bt48,000 per tonne, or 6 x the current open-market price.

The PTP must have been correct all along ... they clearly can manipulate the world market.

Nice work everybody .. stand up and take a bow

[tomross46]

Who bought the rice? Has the money been transferred? To which account? Therefor you have 20 billion baht profit, after all cost? There for you will have 20 billion to give the farmers this month. If you do not, you had better ensure all actions are transparent. If not your next life will be very bad.

[zaphodbeeblebrox]

"Earlier authorities sold 600,000 tons of rice, netting a profit from the transactions in February of 20 billion baht."

Assuming the numbers are correct, profit to PTP, and no payments to the farmers. Well done! Why don't they own up to the fact that the program lacks accounting controls and that huge losses will need to be made up out of the general fund so that the pledge notes are honored and the farmers paid. The deception and misrepresentations are astounding.

[seajae]

if this is a fact why has it taken them so long to do it, why havent they been selling the rice before this so that the farmers were all paid on time. The ptp come out with this bullsh*t every second day and expect people to believe their lies again and again, time for them to show everyone the books and not just their lies and innuendo, let them PROVE their figures but we all know this will never happen because they have cooked the books and will never allow anyone other than their people to know the truth.

Edited February 25, 2014 by seajae

[slapout]

The Commerce Ministery has to go to the DFT to find someone to give a press release on Commerce's intention in the rice program???? The entire cabinet has better prepare themselves to follow the caretaker PM in her quest for a safe haven to make announcements via the media.

The sought after, safe haven within the Thai border may be like looking for that 'needle in the haystack.'

[johnthompson]

This number is clearly so absurd. I find it hard to believe that they sold at 33.000 baht per tonne. Oh no in fact they even made a profit from it. So 33.000 baht + 15.000 baht for the farmers + 10.000 baht transportation, storage, paperwork.

This is just so wrong

[SamMunich]

Commerce Ministry is confident it would sell 1 million tons of rice monthly... and tomorrow is christmas eve, right?

They came up with this "headline" for months now, but they are maybe just too dumb to actually sell the rice, business people, that these civil servants are.
It might work like that in their office, but to simply declare rice to be sold, when you haven't found a buyer nor fixed a price (and not talking about cashing in the cheque!) is major BS. Offering to auction is not already sold!

In fact everybody would be glad, if - after two years or so - they managed to sell off a chunk of what they have in store. This way they would not need to use taxpayers money to pay the farmers (30%) and the millers, storage owners etc (70% of the budget)...

Edited February 25, 2014 by SamMunich

[Scamper]

I think everyone should chip in and buy the administration an abacus. These announcements sound so reassuring, but the figures don't add up in any math Einstein was at least familiar with. Needless to say, no buyers are announced. Who in the world is going to buy rice at four to six times the world market value ? Why aren't these announcements furnished with any supporting details ? Is this how the administration puts forth complex monetary proposals ? They're more like greeting cards. The administration is clearly banking on the fact that the farmers don't actually add these figures up, because at the end of the day, they're travelling back to Bangkok with a vengeance.

Edited February 25, 2014 by Scamper

[khunPer]

Do they (the government) have 10 million tons of sellable rice in stock?

Please correct me if I’m wrong, but my simple logic brain signals:

World market rice price for Thai rice 2014 is (according to web pages) 380 to 450 USD/ton ie. average 415 USD x 32 = 13,000 baht/ton.

Some news articles mentioned that the government is 130 billion baht short to pay farmers.

130 billion baht = 130,000,000,000 / 13,000 = 10 million tons rice.

Can the World market take 10 million tons rice at market price now?

If 1 million tons can be sold every month at market price (deductions, freight etc. ?) it may take 10 month (or more) to pay the farmers.

[casualbiker]

Do they (the government) have 10 million tons of sellable rice in stock?

Please correct me if I’m wrong, but my simple logic brain signals:

World market rice price for Thai rice 2014 is (according to web pages) 380 to 450 USD/ton ie. average 415 USD x 32 = 13,000 baht/ton.

Some news articles mentioned that the government is 130 billion baht short to pay farmers.

130 billion baht = 130,000,000,000 / 13,000 = 10 million tons rice.

Can the World market take 10 million tons rice at market price now?

If 1 million tons can be sold every month at market price (deductions, freight etc. ?) it may take 10 month (or more) to pay the farmers.

Bingo!

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

[HiSoLowSoNoSo]

Dear Khun Surasak, did a fortune teller tell you this or is it just another lie?

[SABloke]

Commerce Ministry is confident it would sell 1 million tons of rice monthly... and tomorrow is christmas eve, right?

They came up with this "headline" for months now, but they are maybe just too dumb to actually sell the rice, business people, that these civil servants are.

It might work like that in their office, but to simply declare rice to be sold, when you haven't found a buyer nor fixed a price (and not talking about cashing in the cheque!) is major BS. Offering to auction is not already sold!

In fact everybody would be glad, if - after two years or so - they managed to sell off a chunk of what they have in store. This way they would not need to use taxpayers money to pay the farmers (30%) and the millers, storage owners etc (70% of the budget)...

Don't spread ridiculous rumours that might get my hopes up: tomorrow is NOT Christmas! Now IF Kittirat comes out this afternoon and states that it is, I'll be rushing to Central to buy presents.

[Loles]

is today 1st of April ???

[Nickymaster]

Dear Khun Surasak, did a fortune teller tell you this or is it just another lie?

I heard there are some good fortune tellers in Dubai.

[renaissanc]

The announcement was probably made together with another promise to the farmers: "We'll pay you next week. Really!"

[rubl]

Earlier authorities sold 600,000 tons of rice, netting a profit from the transactions in February of 20 billion baht.

So I assume that the rice now is sold at 33.000 Baht per tonne, about 4 times the world market price.

Well, if small white lies don't work anymore, you need to get in the big artilleries

I would be interested in knowing what happened with the rest of the sales sum. Even assuming 'only' a 100% profit margin that would mean 20 billion to be restituted to the BAAC which has the government indebted to it fro the minor amount of only 700 billion Baht.

[Lupatria]

Looks like King Power sold a lot of souvenir-rice packages to the last leaving Bangkok tourists this month

[kotsak]

Someone dropped the abacus..

[pb1936]

Yet another blatant deception.

[bigbamboo]

If only the Commerce Ministry could peddle rice like they peddle bullshit.

[SOTIRIOS]

......this past year....the same Ministry...had 'sold' so many millions of tons already....

[inzman]

A bit early for April fools isn't it. Does anybody really believe the spittle that is put out in the news. What is sad is that the red shirts probably do.