PWO seals a rice deal with China

BANGKOK, 28 April 2014 (NNT) - The Public Warehouse Organization (PWO) revealed that the agency has inked a rice deal with China, under which it will export 20,000 tons of Hom Mali fragrant rice to that country this year at the average price tag of 30,000 baht per ton.

Mr. Chanutpakorn Wongsrinil, President of the PWO, said that the rice would be sold to the Chinese government backed company ‘Jin Tai Yu’, adding that the first lots in 5, 15 and 50 kg packs of jasmine rice will be delivered to the afore-mentioned trading partner within next month. The PWO President however did not disclose how much rice would be shipped in the first batch of delivery.

Mr. Chanutpakorn said that Thailand had been negotiating with China for the past 7 months, not only on the rice deal but also on elimination of adulteration of rice which has tarnished the reputation of Thai rice exports.

He expressed his hope that the Jin Tai Yu packed rice would bring back the good name of Thai rice among Chinese consumers, adding that the brand marks the return of PWO’s products in the Chinese market after a 5-year pause.


-- NNT 2014-04-28

Fed up, reading about all these rice deals with different countries and a few days later reading again that the deal was cancelled.

They better tell us, how much rice they did export and not what they would export or wish to export.

What an achievement to sell rice at 25% below market price,

Market price 3 days ago was 38.000 Baht per tonne

http://www.thairiceexporters.or.th/price_eng.html

What an achievement to sell rice at 25% below market price,

Market price 3 days ago was 38.000 Baht per tonne

http://www.thairiceexporters.or.th/price_eng.html

Plus some of it is pre packaged & surely they are not making a hue & cry over 20,000 tons which is but a snowflake in the rice mountain.

Well done, but . . .

1. It's only 20,000 tonnes out of god knows how many left over still unsold
2. It's way underpriced
3. It's taken 7 months to sort this out????

When do we get to see some "real" facts and figures from this Government on what the actual current status is of this rice scam, what's been sold, what's rotting, how much longer can it be stored, what shipments have been made, how much money have they actually generated and where did it go to, etc etc

Fair enough,

But it will all be new seasons rice and most probably bought from farmers outside the pledging scheme. Hence the cheap price.

This of course will make no impact on the rice mountain, could even make it more difficult to shift as customers will have got most of what they want.

Nor does it do anything to give confidence in anything but new seasons crops, the stored stuff is still suspect.

You also have to look at the quantities, a couple of weeks back it was 800K tons but Vietnam beat them on that one.

Then last week it was 1.4 million tons to China.

Now we are down to 20,000 ton lots making news.

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Well done, but . . .

1. It's only 20,000 tonnes out of god knows how many left over still unsold
2. It's way underpriced
3. It's taken 7 months to sort this out????

When do we get to see some "real" facts and figures from this Government on what the actual current status is of this rice scam, what's been sold, what's rotting, how much longer can it be stored, what shipments have been made, how much money have they actually generated and where did it go to, etc etc

Lots of Questions that will go un - answered.

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What an achievement to sell rice at 25% below market price,

Market price 3 days ago was 38.000 Baht per tonne

http://www.thairiceexporters.or.th/price_eng.html

Must be seen to be doing something , even if they are doing SFA.

I'm a bit puzzled. Is the Public Warehouse Organization a public company in the sense that the rice they hold is not part of the government rice mountain and therefore they can just sell it? Is it rice auctioned by the government for sales outside Thailand?

Anyone with more info?

I'm a bit puzzled. Is the Public Warehouse Organization a public company in the sense that the rice they hold is not part of the government rice mountain and therefore they can just sell it? Is it rice auctioned by the government for sales outside Thailand?

Anyone with more info?

Indeed.

If this is the limit of the good news on rice sales, no news would be better news.

Fair enough,

But it will all be new seasons rice and most probably bought from farmers outside the pledging scheme. Hence the cheap price.

This of course will make no impact on the rice mountain, could even make it more difficult to shift as customers will have got most of what they want.

Nor does it do anything to give confidence in anything but new seasons crops, the stored stuff is still suspect.

You also have to look at the quantities, a couple of weeks back it was 800K tons but Vietnam beat them on that one.

Then last week it was 1.4 million tons to China.

Now we are down to 20,000 ton lots making news.

and next weeks breaking news....chinese tourists look at a bag of rice at tesco.....deal imminent....

I plan to take a few kgs to Europe next month, as presents for friends, should I look forward to the announcement from the government, or just get-on-with-it ?

I plan to take a few kgs to Europe next month, as presents for friends, should I look forward to the announcement from the government, or just get-on-with-it ?

You should negotiate a discount - with quantities like that you could be a preferred customer. Ask them to throw in a couple of elite cards too.

I plan to take a few kgs to Europe next month, as presents for friends, should I look forward to the announcement from the government, or just get-on-with-it ?

You should negotiate a discount - with quantities like that you could be a preferred customer. Ask them to throw in a couple of elite cards too.

Regrettably I wouldn't want a Thailand Taxin-Elite Card, even if they gave them away, which I recall the first few hundred mostly were !

I'm a bit puzzled. Is the Public Warehouse Organization a public company in the sense that the rice they hold is not part of the government rice mountain and therefore they can just sell it? Is it rice auctioned by the government for sales outside Thailand?

Anyone with more info?

Seems that it is under the ministry of commerce. http://www.pwo.co.th/ewtadmin/ewt/pwo_eng/ewt_news.php?nid=226

Excerpt from history :

The Warehouse Division became "the Public Warehouse Organization", as the state enterprise under the authority of Ministry of Commerce, with the purpose of more flexibility in operations and efficiency as private sector. The objectives of the organization was set as; "to carry out all activities related to rice, agricultural and other products to ensure that their quantity, quality, and price are appropriate to the public" which was agreed by the government.

the deal will be in effect until another country under cuts the price

Inked a deal which likely means a Memo Of Understanding, which usually means jack squat.

the deal will be in effect until another country under cuts the price

Probably not, for it looks from the OP that the rice will be pre-packaged with the purchasing companies brand and shipped in 5, 10, and 50 KG bags ready for market.

Suspect this could be a test lot and if it works out for the buyer, quality, timely delivery, profit, then there could be follow up orders.

Hope so for the farmers, and at a better price,

the deal will be in effect until another country under cuts the price

Why would another country want to sell at an even greater loss?

the deal will be in effect until another country under cuts the price

Why would another country want to sell at an even greater loss?

If they had paid their own farmers the market-rate, rather than an inflated over-optimistic price for short-term domestic political-advantage, then the other country wouldn't be selling at "an even greater loss", would they ?

And if it were Cambodia, they might be doubly-blessed, for selling their rice at the going-rate while also having exported part of their crop to Thailand at a higher-price, and at the expense of Thai tax-payers !

Isn't 'eternal friendship' a wonderful thing !