17 Bidders compete for Thai govt's stockpiled rice

[webfact]

17 Bidders compete for gov't stockpiled rice



BANGKOK, 15 May 2014 (NNT) - Seventeen bidders participated in the Department of Foreign Trade (DFT)’s rice auction yesterday, competing to buy 450,000 tons of stockpiled rice, according to a Commerce Ministry report. Out of all the bidders, 14 expressed interest in purchasing grain from the 2012 stockpile, while the other three were eyeing lower-quality rice.

Bid opening will be conducted today, and negotiations will be made before the winning price is forwarded to Mr. Niwatthamrong Boonsongpaisan, the caretaker Prime Minister and Commerce Minister, for approval within this week.

The Ministry said that principally, it would still base the auction price on the global rice price and would also deliver the grain at an earliest date possible. It also speculated that more than 200,000 tons of the rice on offer would be sold this time.

Regarding the Government-to-Government deal to sell 800,000 tons of rice to Malaysia, the report said it was still under negotiation as the Thai price is about 10 USD different from the global price tag.

The Ministry believed that Thai rice still has an upper hand at sealing the deal as the rival bidder, Vietnam, has raised its price close to the Thai rice and still has the problem of delivering rice to the Philippines under an auction it won earlier.


-- NNT 2014-05-15

[khwaibah]

Did anyone buy or is this just more BS ?

[Scamper]

" Regarding the Government-to-Government deal to sell 800,000 tons of rice to Malaysia, the report said it was still under negotiation as the Thai price is about 10 USD different from the global price tag. "

" Different " ? Could that be the Pheu Thai euphemism for " higher " ?

[Robby nz]

The Ministry said that principally, it would still base the auction price on the global rice price and would also deliver the grain at an earliest date possible. It also speculated that more than 200,000 tons of the rice on offer would be sold this time

So out of the 600,000 + tons we were told last week that would be on offer they expect to sell less than a third.

That is if the bids come up to an acceptable level.

Considering that at a previous auction of 450,000 tons that attracted 34 bidders none was eventually sold because the bids were to low.... well.

Regarding the Government-to-Government deal to sell 800,000 tons of rice to Malaysia, the report said it was still under negotiation as the Thai price is about 10 USD different from the global price tag

Would that be $10 up or down ?

The Ministry believed that Thai rice still has an upper hand at sealing the deal as the rival bidder, Vietnam, has raised its price close to the Thai rice and still has the problem of delivering rice to the Philippines under an auction it won earlier

As stated Vietnam beat them out of the PP auction so there is every possibility it could do the same again.

Lets hope the money from any that is sold gets to the farmers without to much being extracted in commissions.

[Elmer Gantry]

" Regarding the Government-to-Government deal to sell 800,000 tons of rice to Malaysia, the report said it was still under negotiation as the Thai price is about 10 USD different from the global price tag. "

" Different " ? Could that be the Pheu Thai euphemism for " higher " ?

Allow me to consult the oracle,oops.Sorry the oracle is down at the moment because the set top box for digital has not arrived.Have faith my son,the truth is out there.

[Thai at Heart]

There is lower quality than the 2012,crop they have on hand?

[Torrens54]

Maybe there will be the odd dead rat in every bag...died from overeating.

So now the rice has been "Value-Added" with free MEAT.Surely everyone can understand that the rice has become More Valuable....

Simple lesson from the Good-Luck, No-Luck, Stiff-Luck, Bad-Luck, DING-Luck, School of Economics.

[Jack007]

Maybe i don't understand, but try to follow this calculation:

The government buys every year from the farmers 25 million ton rice

I should think that you have to sell every month at least 2,000,000 ton.

So if you sell 450,000 to 17 parties and 800,000 (maybe) to Malaysia. You have to do this month 750,000 ton more

But the 17 handlers want a bargain.........and Thailand has no position to negotiate.

I guess Vietnam will buy the rice from Thailand to deliver to the Philippines against a discount price.

Thailand has to do, because they have no storage place anymore.

Why they don't sell to Cuba. Their government gives their population (11 million) every month 3 kilo rice for free.

Don't wait too long

Rice is money

[rubl]

There is lower quality than the 2012,crop they have on hand?

A year or more ago they were talking about trying to sell as animal fodder the remainder from 2006, 2007, 2008 and 2009 I think. Never heard what the result was.

[joebrown]

PTP has huge stocks of rapidly deteriorating rice. State owned Thai Airways has a stock of ageing aircraft for sale at highly inflated prices, Both enterprises are in the s--t because of mal-administration and neither are prepared to own up to their mistakes, ie. sell at market/lower prices. Will they admit their mistakes...NEVER.... TIT!!!

[dcutman]

So is the 20 billion baht (central fund) loan gonna be re-payed by May 31? Starting to sound iffy if that is going to happen.

[belg]

with all the rice in stocks, why this secrecy? why "big" companies can not just buy openly at a set price ? now one will get the whole lot at, best price or not ...

[ratcatcher]

PTP has huge stocks of rapidly deteriorating rice. State owned Thai Airways has a stock of ageing aircraft for sale at highly inflated prices, Both enterprises are in the s--t because of mal-administration and neither are prepared to own up to their mistakes, ie. sell at market/lower prices. Will they admit their mistakes...NEVER.... TIT!!!

As long as PTP remain in control, the truth will never be known, just speculated upon. Much needs to be hidden or maybe shredded.

With a forensic audit of everything re the rice, 1st time car buyers, tablets, flood control, Thai Airways, SRT and all the other boondoggles, maybe a little light may be shed on this mess........ but then, maybe not.

[Robby nz]

So is the 20 billion baht (central fund) loan gonna be re-payed by May 31? Starting to sound iffy if that is going to happen.

The 20 billion was never given to the farmers, it was kept to be paid back with the 2 months interest it accumulated pocketed along with the commissions.

As I posted elsewhere the caretaker minister of commerce said on April 24th, almost a month after the money was borrowed, that it would be paid to the farmers "Soon"

Any money that has been paid to the farmers in the mean time has been from the 3 funds set up by the BAAC and any rice that been sold.

How much rice has been sold in that time and for how much for is any ones guess for there are conflicting reports.

We do however have an idea of how much was not sold, for we know that at one auction of 450,000 tons none was sold because the bids from 34 bidders were to low.

We also know that Vietnam beat Thailand in the bidding to sell 800,000 tons to the Philippines.

[a99az]

It feels morally wrong to sell the rice when you have not paid the poor farmer for it.

[ggt]

I want to know the corrupt "under the table" bidding war going on...some Thai officials are in a position to get wealthy...once again at the expense of the Thai rice farmer...this disgrace will live on for years to come...the farmers will not forgive and forget...

[Lupatria]

The Ministry said that principally, it would still base the auction price on the global rice price and would also deliver the grain at an earliest date possible. It also speculated that more than 200,000 tons of the rice on offer would be sold this time

So out of the 600,000 + tons we were told last week that would be on offer they expect to sell less than a third.

That is if the bids come up to an acceptable level.

Considering that at a previous auction of 450,000 tons that attracted 34 bidders none was eventually sold because the bids were to low.... well.

Regarding the Government-to-Government deal to sell 800,000 tons of rice to Malaysia, the report said it was still under negotiation as the Thai price is about 10 USD different from the global price tag

Would that be $10 up or down ?

The Ministry believed that Thai rice still has an upper hand at sealing the deal as the rival bidder, Vietnam, has raised its price close to the Thai rice and still has the problem of delivering rice to the Philippines under an auction it won earlier

As stated Vietnam beat them out of the PP auction so there is every possibility it could do the same again.

Lets hope the money from any that is sold gets to the farmers without to much being extracted in commissions.

I like the term "commissions" isn't that a lovely periphrasis for corruption?

[JesseFrank]

I want to know the corrupt "under the table" bidding war going on...some Thai officials are in a position to get wealthy...once again at the expense of the Thai rice farmer...this disgrace will live on for years to come...the farmers will not forgive and forget...

You're joking yeah ?

The average farmer is too dumb to know he's used, and those few who are will forget history as soon as they get their next election promise blown in their ear.

Why you think Thaksin stays in power all those years ?

[pattayasnowman]

The problem is getting the "real" numbers from the goverment.

In 2012 there was apparently 17 million tons in storage which the government said it had sold about 7 million tons of rice to foreign governments. This would be be a little below the normal level of Thai exports and in keeping with USDA estimates

Thailand prior to the Rice Pledging scheme sold between 8 to 10 million tons per year. So was this 7 million tons in addition to this ? Sounds doubtful. USDA data shows only 7 million tons sold for each of the years 2011/2012 and 2012/2013.

So my guess is there is still 17 million tons in storage and what is more the rice subsidy program, running between October 2013 and September 2014, is expected to need around $4 billion, to buy 11 million tons of rice.

So they are buying and storing more !!

The Thai price of Rice (5 percent broken milled white rice) is currently approx $435 per ton. But the price chart looks very negative and this price is likely to drop $100 / ton over the next year

So when taken along with the Thailands 6th year of budget deficit, Rise in Household /private debt the Real Estate Bubble and of course political turmoil - its adds up to an economic cluster F*****k

Edited May 15, 2014 by pattayasnowman

[Trouble]

I guess the bottom line is what was the price paid for the rice vs. the selling price. Before you all go on the attack and say the government has not paid the farmers for the rice so they paid nothing, I am hopeful that the money collected from selling the rice will pay the farmers for their rice. Does not really matter what todays global price is other than determining the market value for selling now. I am just hopeful that in the big scheme of things there will not be a loss which is too difficult for the Thai government to recover from. Unfortunately the newspaper article does not indicate what the price was for purchasing the rice from the farmers, cost to store, etc. That's why it is so easy for everyone to speculate about something they no nothing about as there is no information out there to begin with.

[anteater]

I want to know the corrupt "under the table" bidding war going on...some Thai officials are in a position to get wealthy...once again at the expense of the Thai rice farmer...this disgrace will live on for years to come...the farmers will not forgive and forget...

You're joking yeah ?

The average farmer is too dumb to know he's used, and those few who are will forget history as soon as they get their next election promise blown in their ear.

Why you think Thaksin stays in power all those years ?

Please spare us your contemptible insults about Thai farmers. Comments like these put you on about the same level as the average buffalo.

Thaksin stayed in power all those years because people realised he helped improve their lives.

[ggold]

I guess the bottom line is what was the price paid for the rice vs. the selling price. Before you all go on the attack and say the government has not paid the farmers for the rice so they paid nothing, I am hopeful that the money collected from selling the rice will pay the farmers for their rice. Does not really matter what todays global price is other than determining the market value for selling now. I am just hopeful that in the big scheme of things there will not be a loss which is too difficult for the Thai government to recover from. Unfortunately the newspaper article does not indicate what the price was for purchasing the rice from the farmers, cost to store, etc. That's why it is so easy for everyone to speculate about something they no nothing about as there is no information out there to begin with.

That's why it is so easy for everyone to speculate about something they no nothing about as there is no information out there to begin with.

Seek and ye shall find! All the facts are out there and very well know about! You might then want to revise your post?

[MJP]

Could be waste firms bidding for garbage contract.

Sent from my SM-N9005 using Thaivisa Connect Thailand mobile app

[kerrysum]

It feels morally wrong to sell the rice when you have not paid the poor farmer for it.

I call that the world today..... Keep them in slavery...... Numbers never lie......

Kerry

[sumtingwong]

Are the "Blue Flag" stalls the bidders?

http://www.thaivisa.com/forum/topic/725727-thai-govt-to-put-cheap-food-stalls-inside-supermarkets/page-3

[sumtingwong]

"Angry and unpaid, Thai farmers poised for airport protest"

http://www.businessinsider.com/r-angry-and-unpaid-thai-farmers-poised-for-airport-protest-2014-20

[ The rice program was among the populist policies pioneered by Yingluck's billionaire brother ]

[billd766]

I guess the bottom line is what was the price paid for the rice vs. the selling price. Before you all go on the attack and say the government has not paid the farmers for the rice so they paid nothing, I am hopeful that the money collected from selling the rice will pay the farmers for their rice. Does not really matter what todays global price is other than determining the market value for selling now. I am just hopeful that in the big scheme of things there will not be a loss which is too difficult for the Thai government to recover from. Unfortunately the newspaper article does not indicate what the price was for purchasing the rice from the farmers, cost to store, etc. That's why it is so easy for everyone to speculate about something they no nothing about as there is no information out there to begin with.

There is another thread I have seen today stating that 720,000 rice farmers are owed about 82 Bn baht by the PTP caretaker government, so yes there is information out there IF it can be found.

It was here that I read it.

http://www.thaivisa.com/forum/topic/726558-thai-rice-growers-turn-to-side-jobs-for-income-while-waiting-for-their-money/