Rice prices dropped to 8,000 - 8,200 baht per ton

[webfact]

Rice prices dropped to 8,000 - 8,200 baht per ton

BANGKOK, 7 Mar 2014, (NNT) - The prices of rice have dropped to the range of 8,000 - 8,200 baht per ton for grain with 15% moisture content, according to the media reports, predicting that prices may dive even further down to 7,000 baht per ton.

Rice millers are now offering the said prices only for off-season rice, as rice farmers have begun to unload their freshly harvested crops, the reports indicated, citing the 7,000 baht per ton price is the lowest level in 6 years.

Currently, rice traders are keeping their eyes on the government’s policies on the management of its stockpile of rice, as its rice pledging scheme will soon come to an end.

Analysts pointed out that the government might rush to sell the stockpiled rice to obtain the money to pay rice farmers who have yet to receive the rice pledging program money, forcing the prices to drop further.

According to the Commerce Ministry’s record, the price during the first 3 months of 2009 was quoted at 2,125 baht per a 100-kilogram sack of white rice; currently, millers offer only 1,475 for each 100-kilogram sack.


-- NNT 2014-03-07

[Rob8891]

This really is not good news for the poor, embattled farmers.

[clockman]

The Thai mantra GREED!!!!!!!!!!!!!!!!

[Costas2008]

Bad for the rice farmers and worst for the Thai economy.

Now we need a sensible government, to take Thailand out of this situation created by this government of morons and vote buying schemes.

Edited March 8, 2014 by metisdead
Font fixed again.

[fab4]

Not sure where the "media" gets its prices from, but the Global Rice Price website, Oryza shows the lowest priced Thai Rice quotes, "Thailand A1 broken", as $310-320 a ton, roughly 10,000 baht a ton

http://oryza.com/

The UN FAO site states the same price for rice exports $310 a ton

http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/

and if you want a comparison site for a company selling the rice on, "Rice Authority" who, they state, "have the lowest prices in the industry" quote Thai A1 super broken at $532 per metric tonne

http://www.riceauthority.com/prices/

Perhaps someone can tell me if I'm reading these sites wrongly?

[looping]

Bad for the rice farmers and worst for the Thai economy.

Now we need a sensible government, to take Thailand out of this situation created by this government of morons and vote buying schemes.

Agreed. There's no way PTP have the skills to dig themselves out of this one. It might involve some policies based around helping the country. They messed it up 'good and proper' this time.

Sent from my iPad using Thaivisa Connect Thailand mobile app

[dickyknee]

Not sure where the "media" gets its prices from, but the Global Rice Price website, Oryza shows the lowest priced Thai Rice quotes, "Thailand A1 broken", as $310-320 a ton, roughly 10,000 baht a ton

http://oryza.com/

The UN FAO site states the same price for rice exports $310 a ton

http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/

and if you want a comparison site for a company selling the rice on, "Rice Authority" who, they state, "have the lowest prices in the industry" quote Thai A1 super broken at $532 per metric tonne

http://www.riceauthority.com/prices/

Perhaps someone can tell me if I'm reading these sites wrongly?

nope, you've read the OP wrongly.

Rice millers are now offering the said prices

[KunMatt]

And on top of that, with every crop the mill owners steal 40% of the rice the farmers try to sell by saying it's not good quality rice, it's too humid, it's underweight and any other lies that they can, so after all the middlemen take their cut the farmer who has slogged hard to make this rice gets a tiny cut of the profit for his product. It's all disgusting but for some reason accepted here by the farmers because they have no option.

[Chao Lao Beach]

The world over it is the farmers who take the risk and get shafted by the bulk selling middle people.

[Chao Lao Beach]

Is this just getting closer to the real market price ?

[Thaddeus]

So, not only have they screwed up with the farmers who did subscribe to the scheme, they are creating a not too bright future for those that didn't.

Well done PTP.

[inzman]

Never miss an opportunity to embezzle some money.

[rubl]

And on top of that, with every crop the mill owners steal 40% of the rice the farmers try to sell by saying it's not good quality rice, it's too humid, it's underweight and any other lies that they can, so after all the middlemen take their cut the farmer who has slogged hard to make this rice gets a tiny cut of the profit for his product. It's all disgusting but for some reason accepted here by the farmers because they have no option.

Far be it from me to defend mill owners, but to be fair the paddy offered by farmers will indeed have a certain humidity level, need to be dried, cleaned, etc. That's why the price given by mill owners would always be lower than the price demanded by them for a finished products.

The question here would seem "what prices are the millers quoting for "grain with 15% moisture content" and how much of the price difference can be seen as 'reasonable' and how much as unreasonable?

[JRSoul]

If somebody complained that hitting themselves in the head with a hammer hurts, what would you suggest they do?

If the logic of that doesn't work, understand that Thaksin and his cronies have replaced the hammer with an ice pick.

[KunMatt]

And on top of that, with every crop the mill owners steal 40% of the rice the farmers try to sell by saying it's not good quality rice, it's too humid, it's underweight and any other lies that they can, so after all the middlemen take their cut the farmer who has slogged hard to make this rice gets a tiny cut of the profit for his product. It's all disgusting but for some reason accepted here by the farmers because they have no option.

Far be it from me to defend mill owners, but to be fair the paddy offered by farmers will indeed have a certain humidity level, need to be dried, cleaned, etc. That's why the price given by mill owners would always be lower than the price demanded by them for a finished products.

The question here would seem "what prices are the millers quoting for "grain with 15% moisture content" and how much of the price difference can be seen as 'reasonable' and how much as unreasonable?

Of course there has to be some quality control but when you take 5 tonnes of rice and go to get paid only to be told that we are deducting 2 tonnes of your rice but given no proof or reasoning then on top of that the 0 rice offered is also 20% below Yingluck's "price promise" it seems very obvious that the mill owners are totally scamming my partner's family. And you have no choice but to suffer because now you cannot ask for all of your rice back so there is no choice but to be shafted and be at the mercy of the corrupt system.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

[rubl]

And on top of that, with every crop the mill owners steal 40% of the rice the farmers try to sell by saying it's not good quality rice, it's too humid, it's underweight and any other lies that they can, so after all the middlemen take their cut the farmer who has slogged hard to make this rice gets a tiny cut of the profit for his product. It's all disgusting but for some reason accepted here by the farmers because they have no option.

Far be it from me to defend mill owners, but to be fair the paddy offered by farmers will indeed have a certain humidity level, need to be dried, cleaned, etc. That's why the price given by mill owners would always be lower than the price demanded by them for a finished products.

The question here would seem "what prices are the millers quoting for "grain with 15% moisture content" and how much of the price difference can be seen as 'reasonable' and how much as unreasonable?

Of course there has to be some quality control but when you take 5 tonnes of rice and go to get paid only to be told that we are deducting 2 tonnes of your rice but given no proof or reasoning then on top of that the 0 rice offered is also 20% below Yingluck's "price promise" it seems very obvious that the mill owners are totally scamming my partner's family. And you have no choice but to suffer because now you cannot ask for all of your rice back so there is no choice but to be shafted and be at the mercy of the corrupt system.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

That's why I said far be it from me to defend mill owners.

The scheme of the Democrat party with minimum price guarantee and payments directly to farmers was not ideal, but much less corruption prone. I'm not in this business but with frequent chats with taxidrivers in Bangkok I got the impression that at least as first the Pheu Thai government introduced scheme was seen as giving farmers at least a 'little bit' more. That seemed to have lessened over the last two years as prices of anything needed for rice cultivation seemed to 'explode' as well. The 'needy' landowners with only a few million rai took their part as well.

Surely a few people got rich as 700++ billion has been passed around. Personally I doubt the number of poor farmers has decreased though

[Thai at Heart]

And on top of that, with every crop the mill owners steal 40% of the rice the farmers try to sell by saying it's not good quality rice, it's too humid, it's underweight and any other lies that they can, so after all the middlemen take their cut the farmer who has slogged hard to make this rice gets a tiny cut of the profit for his product. It's all disgusting but for some reason accepted here by the farmers because they have no option.

Its a ridiculous system. The govt should set up a cooperative in every province to be the seller of.last resort. They should set an effective bottom to the market.

[Thait Spot]

Impossible. Doctor Thaksin assured us all that if we withhold Thai rice from the world that prices would rocket, farmers would get rich and Thailand would makes billions.

Surely he can't be wrong

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[alant]

Impossible. Doctor Thaksin assured us all that if we withhold Thai rice from the world that prices would rocket, farmers would get rich and Thailand would makes billions.

Surely he can't be wrong

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

At the time he said it he may well have been right. I remember shortages in both India and the Philippines and complains that Thailand was not selling enough to them. I can see the reverse happening as farmers say they cannot afford to have rice as a crop without subsidy.

[Mosha]

As someone pointed out before. A staple food for millions who can barely afford to feed the themselves, and that poor excuse for a human being wanted to make it more expensive to feed them.

[Thai at Heart]

Not sure where the "media" gets its prices from, but the Global Rice Price website, Oryza shows the lowest priced Thai Rice quotes, "Thailand A1 broken", as $310-320 a ton, roughly 10,000 baht a ton

http://oryza.com/

The UN FAO site states the same price for rice exports $310 a ton

http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/

and if you want a comparison site for a company selling the rice on, "Rice Authority" who, they state, "have the lowest prices in the industry" quote Thai A1 super broken at $532 per metric tonne

http://www.riceauthority.com/prices/

Perhaps someone can tell me if I'm reading these sites wrongly?

That is FOB Bangkok, after moisture, milling, processing and packaging losses.

Approx 30%. Thus 8000 *30% = 2,400, + 8000 = 10,400 / 32 =$ 325

There is only money to be made in the yield, and in fairness, if it is delivered at 15% there maybe only 20% loss if they do a perfect job milling it.

So not much fat there..............

[JoeThePoster]

Time to declare the standard Thai kilogram is just 500gm.

[fab4]

dickyknee, on 07 Mar 2014 - 12:29, said:dickyknee, on 07 Mar 2014 - 12:29, said:

fab4, on 07 Mar 2014 - 12:26, said:fab4, on 07 Mar 2014 - 12:26, said:

Not sure where the "media" gets its prices from, but the Global Rice Price website, Oryza shows the lowest priced Thai Rice quotes, "Thailand A1 broken", as $310-320 a ton, roughly 10,000 baht a ton

http://oryza.com/

The UN FAO site states the same price for rice exports $310 a ton

http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/

and if you want a comparison site for a company selling the rice on, "Rice Authority" who, they state, "have the lowest prices in the industry" quote Thai A1 super broken at $532 per metric tonne

http://www.riceauthority.com/prices/

Perhaps someone can tell me if I'm reading these sites wrongly?

nope, you've read the OP wrongly.

QuoteQuoteRice millers are now offering the said prices

So it's the rice miller who is at fault for profiteering, not the government. Good to have that confirmed.

Of course we only have the "medias" "reports" to base that supposition on.

Any real quotes from anybody stating what the rice millers are paying? No? Oh well, carry on with the suppositions and blame, I suppose.

Edited March 7, 2014 by fab4

[gerry123]

so i expect the next move is that the farmers who have pledged there crops and awaiting payment will only get the current market price????

[Lupatria]

Impossible. Doctor Thaksin assured us all that if we withhold Thai rice from the world that prices would rocket, farmers would get rich and Thailand would makes billions.

Surely he can't be wrong

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

The game he played with the country's former "white gold" could be understood as illegal gambling.

[SICHONSTEVE]

The world over it is the farmers who take the risk and get shafted by the bulk selling middle people.

Not under Abhisit's rice mortgage scheme it wasn't!!!!!

Have they spotted the error in their ways in electing this bunch of cheating crooks?? I would imagine some have but not all unfortunately - there are too many lemmings that will follow Thaksin whatever he does!!!

[pattayaorganic]

dickyknee, on 07 Mar 2014 - 12:29, said:dickyknee, on 07 Mar 2014 - 12:29, said:

fab4, on 07 Mar 2014 - 12:26, said:fab4, on 07 Mar 2014 - 12:26, said:

Not sure where the "media" gets its prices from, but the Global Rice Price website, Oryza shows the lowest priced Thai Rice quotes, "Thailand A1 broken", as $310-320 a ton, roughly 10,000 baht a ton

http://oryza.com/

The UN FAO site states the same price for rice exports $310 a ton

http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/

and if you want a comparison site for a company selling the rice on, "Rice Authority" who, they state, "have the lowest prices in the industry" quote Thai A1 super broken at $532 per metric tonne

http://www.riceauthority.com/prices/

Perhaps someone can tell me if I'm reading these sites wrongly?

nope, you've read the OP wrongly.

QuoteQuoteRice millers are now offering the said prices

So it's the rice miller who is at fault for profiteering, not the government. Good to have that confirmed.

Of course we only have the "medias" "reports" to base that supposition on.

Any real quotes from anybody stating what the rice millers are paying? No? Oh well, carry on with the suppositions and blame, I suppose.

Well you obviously know nothing about agricultural business and how it works. The rice millers have investment in large infrastructure for milling and they have to purchase raw material, pay for the labor, energy and capital expenses and make a reasonable profit on the their polished rice that they sell.

So you are stating that the rice scheme itself has not any problems at all on the government side it is only the evil rice millers that are at fault here? Wow...obviously you have more in the scrotum than in the skull.

Bottom line is that Dr. Taksin in all his genius thought that he could keep Thai rice off the international market and the price would skyrocket and then everybody would profit (except the poor people who depend on cheap rice) and everything would be dandy.

Well it didn't quite work out that way. This scheme has lost more money in two years than it took to build one of the most expensive science projects in history, the Large Hadron Collider. Don't you think rural Thais would have been much better off if some of that money was invested in schools and teachers and agricultural extension service to support Thai farmers who want to diversify their crops? That is how a market economy works.

This is also the reason why centrally planned economies do NOT work. Rural Thailand needs investment in education and agricultural extension but that doesn't fill the coffers of the Taksin Elite. The man who supposedly was out for the rural Thais took them to the cleaners and ran away with billions while farmers are left to kill themselves and their worthless IOU slips.

Edited March 7, 2014 by pattayaorganic

[finnomick]

Posters please note that this price is for ' off season ' rice or second crop rice. This pricing is normal, no mills offer the full ' first crop ' rice price. In this region ( Buriram ) those who do grow a second crop can only expect half the ' first crop ' price, so about 7000 baht if they are lucky. The few lucky farmers who get their first crop to the mills in the first few days of harvesting actually get the full price, then the price slides along with the already quoted words of ' wet rice, broken rice ' etc etc. If you have an abundance of water and the will to work the fields for little return then the second crop is fine. Most have enough with the first crop and turn to building etc...or the bottle.

[Old Man River]

Not sure where the "media" gets its prices from, but the Global Rice Price website, Oryza shows the lowest priced Thai Rice quotes, "Thailand A1 broken", as $310-320 a ton, roughly 10,000 baht a ton

http://oryza.com/

The UN FAO site states the same price for rice exports $310 a ton

http://www.fao.org/economic/est/publications/rice-publications/the-fao-rice-price-update/en/

and if you want a comparison site for a company selling the rice on, "Rice Authority" who, they state, "have the lowest prices in the industry" quote Thai A1 super broken at $532 per metric tonne

http://www.riceauthority.com/prices/

Perhaps someone can tell me if I'm reading these sites wrongly?

I wouldn't have a clue if you are reading them right or wrong, but the next to last paragraph of this article addresses the market:

http://oryza.com/news/rice-news/thailand-baac-urges-government-pay-subsidies-farmers-not-growing-second-rice-crop

Sent from my iPad using Thaivisa Connect Thailand

Edited March 7, 2014 by Old Man River

[SOTIRIOS]

...that would be................... 'rice fit for human consumption'..........