Rice Mills underprice the Govt's stockpiled rice

BANGKOK, 12 Mar 2014 -- Rice mills have questioned the valuation of the government’s stockpiled rice, putting the price tag of 2013/2014 season 5% moisture rice at 11.10 baht/KG, down from 11.30 baht/KG in the previous auction deal.

The mills claim that the lower expected price is a direct result of the government’s attempt to sell its massive supplies of rice in order to generate funds to pay rice farmers, many of whom have yet to receive their payments under the rice pledging scheme. This circumstance has lessened the government’s bargaining power and obliges it to accept a possible loss in the process.

Many of the rice mills anticipate that only 300,000 tons from the 517,000 tons of rice being bid for at auction will be sold. and that the price will be close to that of the market price but is expected to be lower than the price obtained in the previous auction.

The government needs to generate 8 to 10 billion baht monthly in order to pay rice farmers within the time frame it has promised. The revenue from Monday’s auction would likely be 6 - 7 billion baht.

The expected price of 2011/2012 season rice is 9.50 baht/KG; 2012/2013 rice would be 9.60 - 9.70 baht/KG while the best quality rice from the 2013/2014 season should bring around 11 baht/KG. The rice millers are certain that the price will not exceed the global price tag of 12.30 baht/KG.

-- NNT 2014-03-12

It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

The expected price of 2011/2012 season rice is 9.50 baht/KG; 2012/2013 rice would be 9.60 - 9.70 baht/KG while the best quality rice from the 2013/2014 season should bring around 11 baht/KG. The rice millers are certain that the price will not exceed the global price tag of 12.30 baht/KG

An important fact regarding the quoted part is that the expense of the Rice Scheme has been around 29 Baht per kilogram. The government sold the Rice Scheme as being financed with a "revolving" fund of 500 Billion, thus no need to make it part of the government's budget; obviously when you loose up to 2 Baht for every 1 you receive the only "revolving" thing going on is the spiraling down the toilet of the money, so how was PTP planning to finance the scheme in the long run?

The answer is either that they didn't know it would turn out like this, in which case they are completely incapable of governing anything, or they were aware it will end like this in which case they knowingly set in motion a policy that was going to cause enormous damage to the country, I would call that criminal beheaviour.

The spectacle continues, as the former administration - in lieu of a parliament, and in lieu of even a caretaker status - takes the role of street barter. An unseemly descent, and one which will only be relieved by judicial ruling, and a new administration. The sooner that happens, the sooner the farmers will be paid.

So does this mean it will be cheaper in the shops,I thought not.

regards Worgeordie

the rice wars have begun

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It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

In this case for the farmers that is literally true. What a mess, what a travesty. I wonder if the Ministers and MPs of PTP actually sleep well at night or if even one or two of them quietly think 'what are we doing to our country and our people'? Obviously those thoughts don't cross the minds of any of Shinclan.

The expected price of 2011/2012 season rice is 9.50 baht/KG; 2012/2013 rice would be 9.60 - 9.70 baht/KG while the best quality rice from the 2013/2014 season should bring around 11 baht/KG. The rice millers are certain that the price will not exceed the global price tag of 12.30 baht/KG

An important fact regarding the quoted part is that the expense of the Rice Scheme has been around 29 Baht per kilogram. The government sold the Rice Scheme as being financed with a "revolving" fund of 500 Billion, thus no need to make it part of the government's budget; obviously when you loose up to 2 Baht for every 1 you receive the only "revolving" thing going on is the spiraling down the toilet of the money, so how was PTP planning to finance the scheme in the long run?

The answer is either that they didn't know it would turn out like this, in which case they are completely incapable of governing anything, or they were aware it will end like this in which case they knowingly set in motion a policy that was going to cause enormous damage to the country, I would call that criminal beheaviour.

In my opinion, they knew it was going to be a loser, probably not this bad though. The plan was to rob enough from the 2 trillion baht loan to cover the loss, that's why they stipulated that there would be no oversight.

It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

Who were these "plenty of other people"? I did know a very few rice farmers who did not sell their rice to the government buyers, but they did so because they need their money very quickly and couldn't even wait the 2 or 3 weeks it usually takes for the government to process the pledges.

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

The very reason for the rice pledging was because the government understood the mechanisms behind supply and demand. The private buyers try to buy the rice at the lowest price they can, and part of that is taking advantage of the fact that when the rice farmers harvest and are wanting to sell there is a large supply; and also they know most small farmers are mortgaged up to the hilt and cannot afford to store their rice until the supply goes down and the price rises. The government's rice pledging was an attempt to assure the rice farmers got a better-than-market price for their rice. This was done partially as a subsidy for the farmers and partially as a political plum to engender their loyalty.

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It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

In this case for the farmers that is literally true. What a mess, what a travesty. I wonder if the Ministers and MPs of PTP actually sleep well at night or if even one or two of them quietly think 'what are we doing to our country and our people'? Obviously those thoughts don't cross the minds of any of Shinclan.

IMO the government did not go into this scheme with the intention of causing all this economic turmoil amongst the rice farmers. They in fact developed the scheme to do just the opposite - to guarantee a high price for their crop so they could invest their time and money without worrying about rice prices falling at harvest time.

What the government didn't anticipate and didn't handle well was the Yellow Shirt's strategy and tactics employed to bring down the duly democratically-elected government. Looking back now what Yingluck should have done was secure and earmark the funds to cover these rice pledges before she dissolved the government. Once the government was dissolved and the Yellow Shirts refused to participate in elections she was stuck in no-man's land with a very weak caretaker government which had no power to secure such funds.

IMO it is Suthep and the Yellow Shirts that are using this issue as one of their levers in trying to pry the government out of the Red Shirts' control. And democracy be damned...

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It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

In this case for the farmers that is literally true. What a mess, what a travesty. I wonder if the Ministers and MPs of PTP actually sleep well at night or if even one or two of them quietly think 'what are we doing to our country and our people'? Obviously those thoughts don't cross the minds of any of Shinclan.

IMO the government did not go into this scheme with the intention of causing all this economic turmoil amongst the rice farmers. They in fact developed the scheme to do just the opposite - to guarantee a high price for their crop so they could invest their time and money without worrying about rice prices falling at harvest time.

What the government didn't anticipate and didn't handle well was the Yellow Shirt's strategy and tactics employed to bring down the duly democratically-elected government. Looking back now what Yingluck should have done was secure and earmark the funds to cover these rice pledges before she dissolved the government. Once the government was dissolved and the Yellow Shirts refused to participate in elections she was stuck in no-man's land with a very weak caretaker government which had no power to secure such funds.

IMO it is Suthep and the Yellow Shirts that are using this issue as one of their levers in trying to pry the government out of the Red Shirts' control. And democracy be damned...

The government resigned so they could hold an election in order to cover up their misdeeds. Now it all coming back to haunt them. If they truly felt for the farmers they would have secured that money before they resigned but seems like they were more worried about cya.

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

The very reason for the rice pledging was because the government understood the mechanisms behind supply and demand. The private buyers try to buy the rice at the lowest price they can, and part of that is taking advantage of the fact that when the rice farmers harvest and are wanting to sell there is a large supply; and also they know most small farmers are mortgaged up to the hilt and cannot afford to store their rice until the supply goes down and the price rises. The government's rice pledging was an attempt to assure the rice farmers got a better-than-market price for their rice. This was done partially as a subsidy for the farmers and partially as a political plum to engender their loyalty.

You explained the obvious. I am talking about what is happening now. The government is flooding the market with rice regardless of an oversupply in the local and international market and wonders that the big players are waiting to buy. What will happen to the price when there is no more storage for rice available? The Price will drop like a stone and everybody except the government is aware of that.

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IMO the government did not go into this scheme with the intention of causing all this economic turmoil amongst the rice farmers. They in fact developed the scheme to do just the opposite - to guarantee a high price for their crop so they could invest their time and money without worrying about rice prices falling at harvest time.

What the government didn't anticipate and didn't handle well was the Yellow Shirt's strategy and tactics employed to bring down the duly democratically-elected government. Looking back now what Yingluck should have done was secure and earmark the funds to cover these rice pledges before she dissolved the government. Once the government was dissolved and the Yellow Shirts refused to participate in elections she was stuck in no-man's land with a very weak caretaker government which had no power to secure such funds.

IMO it is Suthep and the Yellow Shirts that are using this issue as one of their levers in trying to pry the government out of the Red Shirts' control. And democracy be damned...

You realise farmers were not being paid prior to the protest movement happening, right?

Kinda blows your theory out of the water - sorry to say.

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

Thaksin Demands it, PTP supply it... thats as far as their 'Supply and Demand' understanding goes.

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It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

In this case for the farmers that is literally true. What a mess, what a travesty. I wonder if the Ministers and MPs of PTP actually sleep well at night or if even one or two of them quietly think 'what are we doing to our country and our people'? Obviously those thoughts don't cross the minds of any of Shinclan.

IMO the government did not go into this scheme with the intention of causing all this economic turmoil amongst the rice farmers. They in fact developed the scheme to do just the opposite - to guarantee a high price for their crop so they could invest their time and money without worrying about rice prices falling at harvest time.

What the government didn't anticipate and didn't handle well was the Yellow Shirt's strategy and tactics employed to bring down the duly democratically-elected government. Looking back now what Yingluck should have done was secure and earmark the funds to cover these rice pledges before she dissolved the government. Once the government was dissolved and the Yellow Shirts refused to participate in elections she was stuck in no-man's land with a very weak caretaker government which had no power to secure such funds.

IMO it is Suthep and the Yellow Shirts that are using this issue as one of their levers in trying to pry the government out of the Red Shirts' control. And democracy be damned...

Do you honestly believe that crap you wrote?

The Govt couldn't pay the farmers even BEFORE any protests took place, so please stop trying to blame anyone else for their screwups.

If they were seriously trying to help the farmers, and let's not forget the multitudes who are NOT eligible for this scam, they should have given direct subsidies, interest free loans, subsidized equipment etc.

This scam was put in place ONLY for the voting benefits AND to allow all the middlemen, owners of the land, millers, processors etc.

So, please, stop trying to deflect the blame anywhere else except where it rightly lies ... at the feet of the thieves that implemented it and then neglected to ensure the funds were available BEFORE they dissolved Parliament.

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

You can reduce this down to Thaksin doesn't understand as it is purely his baby.

Isn't there a math problem here.

They expect that 300,000 tons will be sold - for between 9.50 to 11.10 per kilo. Assuming an average price of even 11 baht per kilo, doesn't that work out to around 3 billion baht instead of 6 billion baht. What am I missing?

Isn't there a math problem here.

They expect that 300,000 tons will be sold - for between 9.50 to 11.10 per kilo. Assuming an average price of even 11 baht per kilo, doesn't that work out to around 3 billion baht instead of 6 billion baht. What am I missing?

All becomes much more clear with the right color of glasses. Try rosa-red

Who is auctioning what for sale to who?

Why do the millers need to get involved. Its neen milled?

Isn't there a math problem here.

They expect that 300,000 tons will be sold - for between 9.50 to 11.10 per kilo. Assuming an average price of even 11 baht per kilo, doesn't that work out to around 3 billion baht instead of 6 billion baht. What am I missing?

About 3 billion baht?

Isn't there a math problem here.

They expect that 300,000 tons will be sold - for between 9.50 to 11.10 per kilo. Assuming an average price of even 11 baht per kilo, doesn't that work out to around 3 billion baht instead of 6 billion baht. What am I missing?

My view exactly! Must be special PTP calculators they are using?

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It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

In this case for the farmers that is literally true. What a mess, what a travesty. I wonder if the Ministers and MPs of PTP actually sleep well at night or if even one or two of them quietly think 'what are we doing to our country and our people'? Obviously those thoughts don't cross the minds of any of Shinclan.

IMO the government did not go into this scheme with the intention of causing all this economic turmoil amongst the rice farmers. They in fact developed the scheme to do just the opposite - to guarantee a high price for their crop so they could invest their time and money without worrying about rice prices falling at harvest time.

What the government didn't anticipate and didn't handle well was the Yellow Shirt's strategy and tactics employed to bring down the duly democratically-elected government. Looking back now what Yingluck should have done was secure and earmark the funds to cover these rice pledges before she dissolved the government. Once the government was dissolved and the Yellow Shirts refused to participate in elections she was stuck in no-man's land with a very weak caretaker government which had no power to secure such funds.

IMO it is Suthep and the Yellow Shirts that are using this issue as one of their levers in trying to pry the government out of the Red Shirts' control. And democracy be damned...

I do not know how you have the kuhoona's to write stuff like that. Oh and what a coincidence all coming from yet another new kid on the block with low post count. Still, the fun part is we just need to guess which one of the recently banned members you are, and we will. There are some guys on here make Sherlock Holmes look brain damaged. They will be circulating your previous moniker in no time at all

Isn't there a math problem here.

They expect that 300,000 tons will be sold - for between 9.50 to 11.10 per kilo. Assuming an average price of even 11 baht per kilo, doesn't that work out to around 3 billion baht instead of 6 billion baht. What am I missing?

About 3 billion baht?

Well at 11 baht kg it would be about 3.3 Billion baht if they sell about 300 000 tons. Definitely close enough for Government work....in Thailand. The well made point from Gabruce being, it will be half the money they plan from the sale. Why don't they have an 11 year old average maths class student as a Government adviser I don't know, it would save them a lot of back tracking.

"...The private buyers try to buy the rice at the lowest price they can". Pssst! That is how one part of markets work. And the sellers try to sell it for as much as they can. High school econ basic stuff. Only supply and demand I see in this mess is: You supply us with votes (and give us power) in exchange for us agreeing to pay unreal world price. Later, when there is no money to pay you, then you can demand change. "If something seems too good to be true, it probably isn't."

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

The goverment ? you mean the man from Dubai

When the supply goes up and the price goes down it's not a "millers conspiracy". It's high school economics in action.

It seems obvious that even now the government didn't understand the mechanism of supply and demand.

The very reason for the rice pledging was because the government understood the mechanisms behind supply and demand. The private buyers try to buy the rice at the lowest price they can, and part of that is taking advantage of the fact that when the rice farmers harvest and are wanting to sell there is a large supply; and also they know most small farmers are mortgaged up to the hilt and cannot afford to store their rice until the supply goes down and the price rises. The government's rice pledging was an attempt to assure the rice farmers got a better-than-market price for their rice. This was done partially as a subsidy for the farmers and partially as a political plum to engender their loyalty.

sorry Bill you are a bit off base leaving out the stockpiling part to control world prices hoping for a collapse of the Indian and Vietnamese rick markets. What you believe is the simplistic belief promoted by the PTP aka government but not really the truth

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It just goes from bad to worse . . . what a complete and utter disaster this has turned into . . . and I pity the poor saps that didn't see this coming . . . cos plenty of other people saw where this was headed from day 1 and didn't buy into the lies and bullshit.

You reap what you sow.

In this case for the farmers that is literally true. What a mess, what a travesty. I wonder if the Ministers and MPs of PTP actually sleep well at night or if even one or two of them quietly think 'what are we doing to our country and our people'? Obviously those thoughts don't cross the minds of any of Shinclan.

IMO the government did not go into this scheme with the intention of causing all this economic turmoil amongst the rice farmers. They in fact developed the scheme to do just the opposite - to guarantee a high price for their crop so they could invest their time and money without worrying about rice prices falling at harvest time.

What the government didn't anticipate and didn't handle well was the Yellow Shirt's strategy and tactics employed to bring down the duly democratically-elected government. Looking back now what Yingluck should have done was secure and earmark the funds to cover these rice pledges before she dissolved the government. Once the government was dissolved and the Yellow Shirts refused to participate in elections she was stuck in no-man's land with a very weak caretaker government which had no power to secure such funds.

IMO it is Suthep and the Yellow Shirts that are using this issue as one of their levers in trying to pry the government out of the Red Shirts' control. And democracy be damned...

you are joking right and while you are at it tell us all about the benefits of this program for all of the really poor farmers unable to participate

A flame post has been removed.