Thai Commerce Ministry to rekindle rice deal with Iraq

[webfact]

Commerce Ministry to rekindle rice deal with Iraq

BANGKOK, 25 Mar 2014, (NNT) - The Department of Foreign Trade has announced that a team of trade representatives is visiting Iraq, in the department’s bid to revive a stalled rice deal with the Middle East nation.

According to Mr. Surasak Riengkrue, the department’s Director General, the negotiation team’s visit, from Monday to Friday of this week, would seek to make a rice deal while regaining the country’s confidence in the kingdom’s product. He lauded Iraq’s market as one with great potential and predicted Thailand would be able to sell a lot of rice there if the negotiation is successful.

According to Mr. Paiboon Kuansongtham, CEO of the Kawchaiporn Co. Ltd., some of Thailand’s private rice exporters previously failed to deliver to Iraq, promised rice of top-notch quality and in appropriate quantities, causing the middle eastern nation to lose interest in purchasing further rice from the kingdom.

He voiced his opinion that these particular companies should explain themselves and issue formal apologies to the Iraqi authorities, thereby taking responsibility for their actions. Mr. Paiboon also suggested that the Department of Foreign Trade move quickly to help change the impression that Iraqi authorities now have about Thailand’s rice quality, in order to regain the nation’s trust.


-- NNT 2014-03-25

[AleG]

Commerce Ministry to rekindle rice deal with Iraq

AKA time for Brown Envelope Diplomacy.

[Rob8891]

Take responsibility???....but but but it not my fault. CANNOT!

[Costas2008]

"some of Thailand’s private rice exporters previously failed to deliver to Iraq, promised rice of top-notch quality and in appropriate quantities, causing the middle eastern nation to lose interest in purchasing further rice from the kingdom."

Nothing new here.........usual practice

[NamKAheng]

So they f... Iraq with a bad rice deal and now they should explain themselves and Iraq would never think they will f... them for a second time.

[Tatsujin]

Apologize and take responsibility? That'll be the day lol

[Robby nz]

Where is the red supporter now who was saying there was no evidence of any bad rice being sold ?

Blame the exporters, yea right.

There has only been one bulk buyer of rice in Thailand for the last almost 3 years and therefor only one place an exporter could have got Thai rice to sell.

The exporter would never have touched the rice, it would have gone direct from a Govt warehouse onboard ship.

Even if an exporter took every precaution by inspecting what he was supposed to be buying from the Govt he had no guarantee what he saw was what was shipped.

That is if there was an exporter involved and it wasn't one of the much heralded G 2 G deals.

[Morch]

I bet TAT could come up with a plan to lure them back into buying Thai rice.

[Local Drunk]

1. Can Iraq actually afford to purchase top quality rice from Thailand at fair market prices? I doubt it, and why should they? They can buy rice anywhere.

2. Will the government sell top quality rice at fire sale prices for a few headlines in the press? I"m sure Iraq will want some serious concessions on the deal. So yes, the government will beg them to buy it. Which also indirectly in an almost sideways fashion answers the first question.

3. Is there any top quality rice in the warehouses left to export? If there is, there isn't a great demand for it world wide at the moment. A fire sale might mean a bit of chump change for a few farmers and an aspirin to a dying government that blames everyone but themselves for their failed policy.

Iraq beware!

[Fat Haggis]

The irony is that you have a corrupt Government dealing with another one that's even more corrupt!!

I've personally witnessed theft of grain in the hundreds of tonnes from Umm Qasr, as well as other expensive items, I was based down in the Port for a few months, and for the right price, they could get you anything you wanted.

There used to bulk carriers from North Korea arriving full of Grain/Rice and they'd be pumping the stuff out if it was loose, there's always a certain percentage that gets spoilt during transit and from off loading, from deliberately dropping the cargo nets with the stuff that's bagged, to blatant smaller Tipper trucks arriving and driving off for the loose stuff and out through the back gates, bypassing the weigh bridge.

Any deal that shifts Thailand's massive store right now has to be seen as a little bit positive, it's better to have it out and being sold, than rotting away in warehouses and unable to sell it.

[Nickymaster]

Perfect countries to make second deals with.

[Fat Haggis]

1. Can Iraq actually afford to purchase top quality rice from Thailand at fair market prices? I doubt it, and why should they? They can buy rice anywhere.

2. Will the government sell top quality rice at fire sale prices for a few headlines in the press? I"m sure Iraq will want some serious concessions on the deal. So yes, the government will beg them to buy it. Which also indirectly in an almost sideways fashion answers the first question.

3. Is there any top quality rice in the warehouses left to export? If there is, there isn't a great demand for it world wide at the moment. A fire sale might mean a bit of chump change for a few farmers and an aspirin to a dying government that blames everyone but themselves for their failed policy.

Iraq beware!

Good post, but if this is indeed the case, how will the powers to be, whoever they are now and in the next few months going to shift the backlog without selling it off at a lower rate, and how will they be able to pay the farmers the fully agreed price according to the rice pledging scheme?

If you're not going to be able to get more than the outstanding amount due to the farmers, and have to accept significant loses, where will the revenue come from to make up what could be anywhere from 25-50% deficit?

[ginjag]

The irony is that you have a corrupt Government dealing with another one that's even more corrupt!!

I've personally witnessed theft of grain in the hundreds of tonnes from Umm Qasr, as well as other expensive items, I was based down in the Port for a few months, and for the right price, they could get you anything you wanted.

There used to bulk carriers from North Korea arriving full of Grain/Rice and they'd be pumping the stuff out if it was loose, there's always a certain percentage that gets spoilt during transit and from off loading, from deliberately dropping the cargo nets with the stuff that's bagged, to blatant smaller Tipper trucks arriving and driving off for the loose stuff and out through the back gates, bypassing the weigh bridge.

Any deal that shifts Thailand's massive store right now has to be seen as a little bit positive, it's better to have it out and being sold, than rotting away in warehouses and unable to sell it.

Is it the problem that new rice is being sold WHILE the old is rotting away, I liked the " re kindled " in the topic heading so it was fired once it is being fired again as in KINDLED.

[Local Drunk]

1. Can Iraq actually afford to purchase top quality rice from Thailand at fair market prices? I doubt it, and why should they? They can buy rice anywhere.

2. Will the government sell top quality rice at fire sale prices for a few headlines in the press? I"m sure Iraq will want some serious concessions on the deal. So yes, the government will beg them to buy it. Which also indirectly in an almost sideways fashion answers the first question.

3. Is there any top quality rice in the warehouses left to export? If there is, there isn't a great demand for it world wide at the moment. A fire sale might mean a bit of chump change for a few farmers and an aspirin to a dying government that blames everyone but themselves for their failed policy.

Iraq beware!

Good post, but if this is indeed the case, how will the powers to be, whoever they are now and in the next few months going to shift the backlog without selling it off at a lower rate, and how will they be able to pay the farmers the fully agreed price according to the rice pledging scheme?

If you're not going to be able to get more than the outstanding amount due to the farmers, and have to accept significant loses, where will the revenue come from to make up what could be anywhere from 25-50% deficit?

No they can't make it up can they. I hate to say the word "Thainess" but they'd rather let it rot than take a loss of face. As long as none one can see the books they don't care what the losses are as long as it doesn't fall back on them. That's most troubling to me because all of these so called business and policy experts can't accept the simple concept of "sunk costs". Denial in the political world is the fastest way to ruin. Open the books and be honest with the people is the best advice I could give this government if it really wants to survive.

[Why ask]

Any civilised Asian country wanting to complete business with Iraq obviously has no idea about worldwide cultures.

That, in itself, explains why Thai authorities (re- active government of the PTP) are desperate to sell rotting rice piles to any country in the world, despite reputational quality.

Go ahead PTP leaders. Keep destroying the Kingdom of Thailand to coffer your own bank accounts, with no intention of paying any of the farmers.

It gets sicker and sicker. "Please sir, may I have some more, sir?" : Thaksin, "Go ahead, get me what you can. I'll give you 10%."

[Scamper]

Until the rice silos are ever opened to the public - which will likely take a judicial order - the public's only way of determining the quality of the rice in them is through the foreign buyers themselves. So far, the reaction doesn't support Pheu Thai's narrative. Not surprisingly.

Edited March 25, 2014 by Scamper

[Fat Haggis]

When you talk about the public, you mean the no Government affiliated Millers etc ? If you mean the general public, I doubt most people would be able to tell the difference between the different qualities, you'd really need to be an expert, it's kind of like me filling up my car with diesel and then asking to see the refinery that made it..

Even if it were an interim Government or peoples council who were in power and a deal with Iraq was struck, right from the off, they'd fall right down on their own anti corruption stance as NOTHING gets through that Port of Umm Qasr without kickbacks. Customs will hold it till they are adequately "compensated"

Prior to 2008 the Port was run by the Militia, and now it's run by Generals and High powered Iraqi Ministers..some oil and gas companies had to wait 5-7 months before their stuff was "cleared" through customs, and that was only through pressure to the Ministry of Oil, and the Iraqi Ministry of Interior.

Thailand has NOTHING on corruption compared to Iraq.. so yeah, perfect business partner then

[Thai at Heart]

Something missing here

How does offering top notch rice at an appropriate quantity lose you business?

[antimedia]

What a load of croc, some of Thailand’s private rice exporters previously failed to deliver. The Thai Government tried flog them crap rice and they (Iraq) told them to shove it where the sun don't shine. The problem will repeat itself if they are successful in dealing again as these moronic thais just don't learn and keep their snouts out of the trough.

[Local Drunk]

Something missing here

How does offering top notch rice at an appropriate quantity lose you business?

Ok, it loses you money because you're selling it at a loss. You can have all the business in the world and still lose money. Granted that this program was designed to lose money from the get go as a government subsidy. We all understand subsidies; however, the billions of bhat lost have not gone into the pockets of the people that the policy was designed to help.

[worgeordie]

Once you loose a customer it is very difficult to regain their

trust,especially after the way the exporters treated Iraq,that

was the good times when Thailand could export all its rice,

and when Thai rice had a good reputation,now they are coming

cap in hand looking for buyers,saying sorry for the past might

not be enough.

regards Worgeordie

[notmyself]

Government said Iran was going to buy 250,000 tonnes a while back. Did it happen?

[rubl]

Some of the history:

2013-05-05

http://www.thaivisa.com/forum/topic/637303-thaksin-meets-iraqi-p-m-amid-row-on-status/

2013-08-09

"Deputy Prime Minister/Foreign Minister Surapong Tovichakchaikul said he received the report on Iraqs decision from former prime minister Thaksin Shinawatra a move which would have an adverse impact on Thailand since Iraq buys one million tonnes of rice from the country each year."

http://www.thaivisa.com/forum/topic/659661-thai-foreign-minister-surapong-iraq-suspends-thai-rice-imports/

Edited March 25, 2014 by rubl

[rickirs]

Getting the stalled sales back on track with Iraq is worth doing whatever is necessary to generate needed revenues for the Thai rice farmers. If apologoes are needed to the Iraqi's, that's a cheap proce to pay for the trade. You can be vindictive towards the government but let's not lose site of the people who best benefit from rice sales and that's the farmers, both rich and poor.

[rubl]

Getting the stalled sales back on track with Iraq is worth doing whatever is necessary to generate needed revenues for the Thai rice farmers. If apologoes are needed to the Iraqi's, that's a cheap proce to pay for the trade. You can be vindictive towards the government but let's not lose site of the people who best benefit from rice sales and that's the farmers, both rich and poor.

Not sure what this has to do with generating revenue to pay Thai rice farmers.

BTW how much of the 20 billion Baht borrowed from the Emergency Fund and allegedly turned over to the BAAC to pay some farmers, has already been paid out? I know I"m somewhat impatient, it's only the 25th of March and so. Mind you the government wanted to borrow 130 billion to settle outstanding bills and around 100 billion would still be outstanding to farmers, millers, warehouse owners. Also the 20 bllion needs to be added as it has to be returned before the end of May, this year that is.

[Morch]

You can be vindictive towards the government but let's not lose site of the people who best benefit from rice sales and that's the farmers, both rich and poor.

The rich and poor farmers got their 30% too?!

[Thai at Heart]

Something missing here

How does offering top notch rice at an appropriate quantity lose you business?

Ok, it loses you money because you're selling it at a loss. You can have all the business in the world and still lose money. Granted that this program was designed to lose money from the get go as a government subsidy. We all understand subsidies; however, the billions of bhat lost have not gone into the pockets of the people that the policy was designed to help.

It doesn't say lost money, it said lost business.

[Ricardo]

Didn't the quality-problem with Iraq arise last year, wasn't the FM reported to be working then to find a solution to the problem, and Thaksin reported to be involved ?

http://www.thaivisa.com/forum/topic/659661-thai-foreign-minister-surapong-iraq-suspends-thai-rice-imports/

And if Iraq was importing a million tons per-annum from Thailand, then surely that sort of quantity has to have been via the Thai government, not solely through private exporters ?

[bigbamboo]

It's not only the companies who should be groveling to the Iraqis and suffering a loss of face.

The government ministers involved should also be there, especially the boss of the Rice Committee, Yingluck Shinawat.

She loves a foreign jaunt and a dose of humility will be good for her soul.

[surangw]

I bet TAT could come up with a plan to lure them back into buying Thai rice.

the usual booze and hookers lure?