US among countries eyeing 1.6m tonnes of G2G rice deals

[webfact]

US among countries eyeing 1.6m tonnes of G2G rice deals
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- THE UNITED STATES and other countries are interested in purchasing rice from Thailand under government-to-government contracts, for a combined volume of more than 1.6 million tonnes, says the Foreign Trade Department.

Moreover, the Commerce Ministry reported yesterday that eight local rice traders had joined the ministry's general auction in Suphan Buri province for 169,000 tonnes, while 15 traders also joined bidding through the Agricultural Futures Exchange of Thailand (Afet).

Surasak Riangkrul, director-general of the ministry's Foreign Trade Department, said it was negotiating with the US on a G2G rice contract.

"If the negotiations succeed, Thailand may be able to sell about a million tonnes of rice to the US, one of the world's biggest rice-trading markets. Also, many other countries have negotiated with Thailand for purchase of about 600,000 tonnes of rice from the government," he said.

He did not say which kind of rice the US was interested in purchasing. Last year, it imported 382,300 tonnes of rice from Thailand. In January this year, it imported 35,060 tonnes, down by 8.79 per cent year on year. According to the Thai Rice Traders Association, the price of 100-per-cent Thai white rice is currently quoted at US$403 a tonne, while the US rice is traded at $605 a tonne.

Surasak said that with many potential contracts for sale of rice from the government stocks, it should be able to reduce its stockpiles while earning money to return to the Finance Ministry under the pledging scheme on time.

Rice exports to Iraq 'soon'

Thailand should soon be able to resume exports of rice to Iraq after that country banned imports of Thai rice three years ago. Thai exporters should also be able to join the upcoming bidding for 800,000 tonnes of rice opened by the Philippine government and win some contracts, he added.

As of the end of March, the ministry reported that it could return Bt216 billion from rice sales to the Finance Ministry.

Moreover, as of last Friday, the ministry was able to return Bt10.7 billion of the Bt20 billion that had been allocated from the central budget to pay farmers under the rice-pledging scheme. Caretaker Deputy Commerce Minister Yanyong Phuangrach said the ministry should be able to return the whole Bt20 billion by the end of May.

To ensure rice quality, the ministry yesterday opened warehouses in Suphan Buri for the media's inspection. A representative from China's state-owned enterprise COFCO also observed the warehouses.

Somchart Soithong, director-general of the Internal Trade Department, said more rice buyers had joined the Afet auction of 260,000 tonnes of rice. The proposed price was better than at previous auctions, showing that market demand is up amid a lower supply from the second harvest season.

Somchart said that after the end of the main harvest season in February, less rice had entered the market, while the second crop is expected to produce less than 8 million tonnes of paddy rice. With the lower supply amid rising demand in the world market, coinciding with a lower price for Thai rice, the country should be able to sell its stocks for reasonable sums, he said.

Meanwhile, Yanyong testified yesterday to the National Anti-Corruption Commission (NACC) that caretaker Prime Minister Yingluck Shinawatra had not been negligent in preventing corruption in the rice-pledging programme but had found it necessary to keep the Pheu Thai Party's election promise of setting the pledging price at Bt15,000 a tonne to increase farmers' incomes.

The NACC is prosecuting Yingluck over her role in large losses that the programme has allegedly caused.

Yanyong was one of 11 witnesses that Yingluck had named, but was one of only three ministers that the NACC allowed to testify on her behalf. The others are caretaker Commerce Minister Niwatthumrong Boonsongpaisan, who will testify today, and caretaker Finance Minister Kittiratt Na-Ranong, who has postponed his testimony as he is attending a World Bank meeting in Washington, DC. Yanyong told the NACC that the rice-pledging scheme had been implemented under the Constitution Act. After the programme was established, the price of Thai rice had increased continuously compared with 10 years ago.

He said Yingluck could not suspend or cancel the project after it had been declared to Parliament.

Also, he claimed that despite the allegations of corruption and huge losses under the project, there was no clear evidence of such malfeasance as no authorised agencies had finalised the project's budget yet.


-- The Nation 2014-04-10

[NongKhaiKid]

Forget ' show us the money ' rather ' show us the PROOF '.

[Pimay1]

Also, he claimed that despite the allegations of corruption and huge losses under the project, there was no clear evidence of such malfeasance as no authorised agencies had finalised the project's budget yet.

This was presented as a zero-sum game scheme. The fact that there are not any financial reports detailing rice sale income versus monies paid out from the beginning of the scheme substantiates negligence on the part of Yingluck. It also substantiates malfeasance which is described as any of the following. The performance by a public official of an act that is legally unjustified, harmful, or contrary to law; wrongdoing (used especially of an act in violation of a public trust).

[winstonc]

Forget ' show us the money ' rather ' show us the PROOF '.

thats the bottom line kid spot on...

[slapout]

More, what ifs, maybe rice deals, and then the controdictions of fact in this news release, throw in the accounting details, decrease in rice volume from farmers, rice price vs 10 year ago, etc, I just give up on trying to make out the message being relayed to the people.

Then I noted this appears to be a Commerce Ministry release and things became somewhat more clear, They still lack monies for the payment of rice farmers commited to the program, this years harvest are not being contracted to the program by farmers, the quality of stored rice is suspect to potential bidders, local (Thais) are our best chance to sell rice to, at lower but reasonable price. And finnaly we are trying to save the PM's arse but we are not telling where the monies went, are, or will be. And on top of that no current Ministry has people who can give answers to questions under threat of loss of employment.

[zydeco]

I'm writing my local congressman and senator to protest this action and try and make sure this toxic, rat infested, moldy rice does not get into the U.S. food chain.

Edited April 10, 2014 by zydeco

[sae57]

Is anybody tracking the 20 bln? Nobody in my neighborhood has been paid, the local economy's bottomed out.

--S

[looping]

How about they tell us when they actually sell some rice, along with details of the type of rice, year of production as well as the price. This would be news; actual deals involving money which can then be used to pay the farmers before any more of them commit suicide.

Let's also keep our fingers crossed that the rice is in good condition or the entire industry in Thailand will be doomed for a very long time. Let common sense win over greed, for once.

Sent from my iPad using Thaivisa Connect Thailand mobile app

[Ricardo]

It's always 'jam tomorrow, never today', with these rice-sales & bids, isn't it ?

The Phillipines' auction has been trumpeted by PTP for almost a year now, for example.

Meanwhile "the Commerce Ministry reported yesterday that eight local rice traders had joined the ministry's general auction in Suphan Buri province for 169,000 tonnes, while 15 traders also joined bidding through the Agricultural Futures Exchange of Thailand (Afet)."

So domestic-traders continue to purchase relatively-small amounts, as Thai consumers eat it, no great surprise there, but also no major solution to the caretaker-government's major problem.

Oh, and the new irrigated-crop of rice is growing well, up here in the North-West ... wonder if Yingluck plans to buy it again, and if so, at what price exactly ?

[Publicus]

Advance units of the cavalry have arrived and they rode straight to the Constitution Court with the news about new rice sales. The oncoming main relief force is only several days away. Uncle Sam has dumped out a sack of rice on the floor of the Ammart.

The fascists here are gonna go bonkers.

[khwaibah]

Forget ' show us the money ' rather ' show us the PROOF '.

Can't spend proof.

[KIWIBATCH]

I'm writing my local congressman and senator to protest this action and try and make sure this toxic, rat infested, moldy rice does not get into the U.S. food chain.

Good on you.........I suggest all Americans living in Thailand do the same

[bluebluewater]

There are no G2G rice sales. It's all done through brokers. All of the stories like this one are just make-believe for the benefit of whomever is saying it and those that want to believe.

[jalansanitwong]

They wont tell us what price they're getting for the rice. Obviously theyre dumping it for whatever they can get.

The USA wont be buying old stock only current harvests ,if any.

[bigbamboo]

I bet they are. The Americans know how to make a buck and they also know the Thais are desperate to sell at any price.

[Scamper]

" He did not say which kind of rice the US was interested in purchasing. "

Let's hope they're not too picky.

[rubl]

"As of the end of March, the ministry reported that it could return Bt216 billion from rice sales to the Finance Ministry."

Does this mean that the government is no longer in need to borrow 130 bililon to pay outstanding bills? Does this mean that the government might even return some money to the BAAC to fill that 700++ billion Baht hole?

[rubl]

"Also, he claimed that despite the allegations of corruption and huge losses under the project, there was no clear evidence of such malfeasance as no authorised agencies had finalised the project's budget yet."

So, with 700++ billion spent and a need to borrow 130 billion more, could we have at least a temporary project budget estimate written with a grease pen on the side of a matchbox ?

Doesn't Caretaker Deputy Commerce Minister Yanyong Phuangrach actually testify that Ms. Yingluck has been negligent in following up on her scheme and procedure?

[Thai at Heart]

Advance units of the cavalry have arrived and they rode straight to the Constitution Court with the news about new rice sales. The oncoming main relief force is only several days away. Uncle Sam has dumped out a sack of rice on the floor of the Ammart.

The fascists here are gonna go bonkers.

Oh lord, I hadn't considered this.

The USA gets dragged into this by emptying the rice warehouses. Oh dear...what a possibility.

[Valentine]

Advance units of the cavalry have arrived and they rode straight to the Constitution Court with the news about new rice sales. The oncoming main relief force is only several days away. Uncle Sam has dumped out a sack of rice on the floor of the Ammart.

The fascists here are gonna go bonkers.

Can you clearly define what Ammart means, in fact do you even know as it appears there are no specific definitions as descriptions of Ammart can apply to either side in this political conflict. Bogeyman perhaps.

The OP is really non news as it is only designed to give some faint glimmer of hope to those struggling farmers who have not been paid yet. G2G rice deals should be published once they are made & the cheque has been cleared along with full disclosure about volumes sold & price received. Part of this whole rice scheme has been the complete lack of transparency related to volumes, sales, storage (including cost of storage) & most of all exactly who did receive all the money.

[Roadman]

"Also, he claimed that despite the allegations of corruption and huge losses under the project, there was no clear evidence of such malfeasance as no authorised agencies had finalised the project's budget yet."

So, with 700++ billion spent and a need to borrow 130 billion more, could we have at least a temporary project budget estimate written with a grease pen on the side of a matchbox ?

Doesn't Caretaker Deputy Commerce Minister Yanyong Phuangrach actually testify that Ms. Yingluck has been negligent in following up on her scheme and procedure?

Unbelievable is it not. The "no authorised agency has finalised the project's budget yet." The lot of them involved with the scheme should be hung out to dry - incompetence being used to hide corruption...The 2 plus trillion Baht spend that these thieves were trying to get their scumbag hands on would have been side stepped past in several years time as well in the incompetent and corrupt same way. Edited April 10, 2014 by Roadman

[city]

I'm writing my local congressman and senator to protest this action and try and make sure this toxic, rat infested, moldy rice does not get into the U.S. food chain.

Any links for this. Maybe just another propaganda spin, that some on here believe

[city]

......Yanyong was one of 11 witnesses that Yingluck had named, but was one of only three ministers that the NACC allowed to testify on her behalf.

The NACC trying to rush this one through. No agenda, thinks not. "Come on Yingluck, we are on the clock, we have to deliver Sutheps verdict to ignite his peoples revolution" We will listen to him, him and him. If it smells like sh1t it is sh1t.

Edited April 10, 2014 by city

[Valentine]

I'm writing my local congressman and senator to protest this action and try and make sure this toxic, rat infested, moldy rice does not get into the U.S. food chain.

Any links for this. Maybe just another propaganda spin, that some on here believe

As you are new (or perhaps an old one reincarnated) you should understand that there has already been news items & photos showing mouldy rice not to mention the bad lot which was sold to Ivory Coast so you should take your own propaganda spin elsewhere.

[belg]

are they importing as a favor to thailand? does USA really need low grade chemical laden rotten rice ???

[Jonmarleesco]

'... He [surasak] did not say which kind of rice the US was interested in purchasing ...'. Presumably the kind that isn't mouldy, covered in pigeon shit, tainted by rodent droppings, or simply rotten. In short, any rice that has survived long term storage in less than ideal conditions.

[smileydude]

I never thought that after this rice-pledging scam fiasco that any developed country in their right mind would consider buying Thai rice. I won't believe it until I see the rice actually delivered since politicians are fantastic spin makers.

[Publicus]

" He did not say which kind of rice the US was interested in purchasing. "

Let's hope they're not too picky.

They're not so you can relax. Read on however.

The US grows rice, primarily in the wet and swampy lower Mississippi River Valley where the temps are hot and steamy most of the year. The people of every country in East and SE Asia presume we've never eaten or tried rice, that rice is only an Asian food. Asians are not known for their general knowledge.

SecState Kerry's letter must have said something about a rice deal, among several other things very pleasing to the legitimately elected democratic government of the Kingdom, things I can only try to figure as being likely. But I'll stay with only that one for a while. I want to say Gen Prayuth likely knows of at least one other item of mention in Sec Kerry's letter, but then I would only be extrapolating.

So lo and behold, now suddenly come the Phils, which same as Thailand are a security treaty ally of the United States, to become active in the rice markets of recent days. And now all of a sudden Iraq, which the past three years prohibited purchase of Thai rice, are now suddenly back in the Thai market. Beijing, which above all else wants stability in Thailand either way, has re-entered the fray by looking to buy 1 million tons, as have other governments of the region.

At this point, something approaching a sum of 3 million tons are being discussed, some of it eyeball examined in the warehouse, priced etc. I'd say IMHO some additional deals are presently being formulated that when sought in specific terms, might well take that figure up to 4 million or more tons.

CC action against Yingluck in the rice subsidy program remains 2 - 3 weeks away, as you note in your posts. (You also duly noted in a post the government got the letter from Washington that it had so very much wanted, and, I would add, for months had been trying to get.) Two to three weeks however is enough time to make the deals for real and for the money to be committed. So looking from the other side of the globe at a CC ruling based on rice when the rice subsidy program appears to the distant eye to be doing so well might cast some doubts on such a ruling.

Also for sober consideration is the reality that no one in the world is going to accept the removal of a prime minister by a court for having transferred one government employee.

Sometimes the cavalry arrive on elephants, so it just takes a bit more time to get here, and while they don't come galloping in at the charge, they do arrive.

Edited April 10, 2014 by Publicus

[dcutman]

Surasak Riangkrul, director-general of the ministry's Foreign Trade Department, said it was negotiating with the US on a G2G rice contract.

Since when did the US Govt get into the rice buying business? Just another BS statement made by the PTP govt?

[rubl]

" He did not say which kind of rice the US was interested in purchasing. "

Let's hope they're not too picky.

They're not so you can relax. Read on however.

The US grows rice, primarily in the wet and swampy lower Mississippi River Valley where the temps are hot and steamy most of the year. The people of every country in East and SE Asia presume we've never eaten or tried rice, that rice is only an Asian food. Asians are not known for their general knowledge.

SecState Kerry's letter must have said something about a rice deal, among several other things very pleasing to the legitimately elected democratic government of the Kingdom, things I can only try to figure as being likely. But I'll stay with only that one for a while. I want to say Gen Prayuth likely knows of at least one other item of mention in Sec Kerry's letter, but then I would only be extrapolating.

So lo and behold, now suddenly come the Phils, which same as Thailand are a security treaty ally of the United States, to become active in the rice markets of recent days. And now all of a sudden Iraq, which the past three years prohibited purchase of Thai rice, are now suddenly back in the Thai market. Beijing, which above all else wants stability in Thailand either way, has re-entered the fray by looking to buy 1 million tons, as have other governments of the region.

At this point, something approaching a sum of 3 million tons are being discussed, some of it eyeball examined in the warehouse, priced etc. I'd say IMHO some additional deals are presently being formulated that when sought in specific terms, might well take that figure up to 4 million or more tons.

CC action against Yingluck in the rice subsidy program remains 2 - 3 weeks away, as you note in your posts. (You also duly noted in a post the government got the letter from Washington that it had so very much wanted, and, I would add, for months had been trying to get.) Two to three weeks however is enough time to make the deals for real and for the money to be committed. So looking from the other side of the globe at a CC ruling based on rice when the rice subsidy program appears to the distant eye to be doing so well might cast some doubts on such a ruling.

Also for sober consideration is the reality that no one in the world is going to accept the removal of a prime minister by a court for having transferred one government employee.

Sometimes the cavalry arrive on elephants, so it just takes a bit more time to get here, and while they don't come galloping in at the charge, they do arrive.

I like your wishful thinking approach.

In the mean time this undemocratic government is still not able to produce even a clear consistent A4 sheet with preliminary figures on how 700++ billion Baht has been spent and why 130 billion more needs to be borrowed to pay off additonal farmers, millers, warehouse owners and so.

Even with all miraculously appearing possible deals the figures are varying, sales results guarded like national secrets, etc., etc.

As for the sober realisation, you should probably read some more. The 'no one in the world' may include Thaksin, Pheu Thai, UDD and a few posters here. ASEAN will stand around just watching, USA will make a statement, UK and EC will deplore and caretaker MoFA Surapong will need to do more explaining why this court decision would be wrong. All assuming of course that the Constitutional Court will rule negative for Ms. Yingluck who complained 'be fair, fellow re-instated, next please' as if crimes can be corrected that easily.

So, the elephants can rest at home, the rice can be transported with trucks if need be, if still present.