The price of bagged rice dips 25 baht

[webfact]

The price of bagged rice dips 25 baht



BANGKOK, 15 May 2014, (NNT) - The price of packed rice has dipped 25 baht from a range of 110 - 120 baht per 5kg bag to 90-95 baht a bag, reports Mr. Somkiat Makkhayathorn, President of the Thai Rice Packers Association.

He noted that the price drop is in line with the global rice price which has declined to a record low. He also attributed the drop to the repeated release of stockpiled rice from government warehouses as well as the fact that new grain is still flowing into the market.

President Somkiat said some of the packed rice brands have reduced their prices to the range of 70-80 baht per pack, pointing out however that the price wouldn't drop any further as the price merely covers operational costs. He said new grain is now priced at 11-12 baht per kilogram, or 15 baht when the processing cost is included, adding that the price should stabilize during the second half of this year

Mr. Somkiat is confident that the price of Jasmine rice will remain the same for the time being. Meanwhile, the Thai Rice Exporters Association echoed Mr. Somkiat’s opinion, saying that the rice price has hit the lowest level in a decade with the prospect of dipping even lower, should India decides to unleash its stock on to the global market.

The association indicated that, after Vietnam has sold 800,000 tons of rice to the Philippines recently, the price of Vietnam grain has stabilized somewhat, with a potential to adjust itself upward. The Thai Rice Exporters Association claimed that, due to various factors, Thai rice is unable to gain better a price, despite the fact that the kingdom has secured a rice deal with the important Malaysian market.


-- NNT 2014-05-15

[khwaibah]

When you can not give it away expect it to drop lower..

[NeverSure]

A bag of rat droppings dead flies insect larvae mold mildew rice has dropped 25 baht and it still won't sell.

[xminator]

When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Edited May 15, 2014 by xminator

[Thai at Heart]

When these people bid for rice from the government don't they have to declare for export or domestic?

[marko kok prong]

When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Not if you have investments in Rice farms.

[edwinchester]

When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Falling rice prices are because the Thai Govt has totally f***ed the market. Prices offered to the dirt poor farmers have fallen to as low as 4500 bht per tonne, less than it costs to produce. Tell me how that helps the rural poor?

[PattayaPhom]

"Record Low" only a few years ago it was 80-85 Baht for 5 kg

[marko kok prong]

When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Falling rice prices are because the Thai Govt has totally f***ed the market. Prices offered to the dirt poor farmers have fallen to as low as 4500 bht per tonne, less than it costs to produce. Tell me how that helps the rural poor?

I agree,this year is not looking good price wise,it,s all very well for Xminator to waffle his marxist claptrap,but if you a farmer or have an investment in rice farms this coming year is looking bleak,and yes the govt made this mess,and a lot of farmers are bankrupt now because of it.

[belg]

i wonder if our favo supermarket will lower the price or just pocket the difference, what do you think?

[Muggi1968]

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When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Falling rice prices are because the Thai Govt has totally f***ed the market. Prices offered to the dirt poor farmers have fallen to as low as 4500 bht per tonne, less than it costs to produce. Tell me how that helps the rural poor?

I agree,this year is not looking good price wise,it,s all very well for Xminator to waffle his marxist claptrap,but if you a farmer or have an investment in rice farms this coming year is looking bleak,and yes the govt made this mess,and a lot of farmers are bankrupt now because of it.

It will get worse:

Many farmers here do not plant the paddy fields this season, because they do not expect to be able to get Mr. Taksins min. price.

And then they did not go to vote, because they wanted to show their anger

[ezzra]

My other half have a discerning taste, she now like Basmati rice at 100 baht a kilo...

[Robby nz]

The association indicated that, after Vietnam has sold 800,000 tons of rice to the Philippines recently, the price of Vietnam grain has stabilized somewhat, with a potential to adjust itself upward. The Thai Rice Exporters Association claimed that, due to various factors, Thai rice is unable to gain better a price, despite the fact that the kingdom has secured a rice deal with the important Malaysian market.

This report at 12.13 is a change from the other topic at 11.10 http://www.thaivisa.com/forum/topic/726284-17-bidders-compete-for-thai-govts-stockpiled-rice/

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.

One hour back the deal was still under negotiation and there was a rival bidder, Vietnam.

[Bluespunk]

"Thai rice is unable to gain better a price, despite the fact that the kingdom has secured a rice deal with the important Malaysian market."

Replace 'despite the fact that' with 'because' and things make more sense. How much is the Malaysian market being charged? I'll bet it's not full price.

Edited May 15, 2014 by Bluespunk

[patongphil]

When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Falling rice prices are because the Thai Govt has totally f***ed the market. Prices offered to the dirt poor farmers have fallen to as low as 4500 bht per tonne, less than it costs to produce. Tell me how that helps the rural poor?

14.2 baht per kilo here in Sarakham for paddy? Not sure where you got your number from.

[edwinchester]

When you can not give it away expect it to drop lower..

Is not falling food prices a welcome news when the last years have been all about inflating food prices? Lower rice price means easier for Thailands poor to feed themselfs, while the middle class can continue to eat their processed and imported expensive food. That the falling price is subsidised by the rich tax money is how a working society should work. Redistribution of wealth.

Falling rice prices are because the Thai Govt has totally f***ed the market. Prices offered to the dirt poor farmers have fallen to as low as 4500 bht per tonne, less than it costs to produce. Tell me how that helps the rural poor?

14.2 baht per kilo here in Sarakham for paddy? Not sure where you got your number from.

Is that for Jasmine?

Here in Kanchanaburi farmers push out 3 sometimes 4 crops of the cheapest white rice hoping to cash in on the subsidy. Now that is over they are at the mercy of the rice mills. One of our neighbours was crying in the local shop recently that they had only been offered 4500bht per tonne for their latest crop which is quite a loss for them unfortunately.

[GAZZPA]

Yes more bad news for the rice pledging scheme. I cannot see anyway out of this mess for Thailand expect long term debt.

The rice is going to rot before it is sold. The best thing they can do is sell it all at the current market price and negotiate a long term payment plan for the shortfall with the AG bank.

At least that way the country can try and start to compete effectively back in the global market and rebuild its exports (without the scheme of course).

In the meantime what on earth do the poor farmers do?

Haven't heard anything about the farmers not being paid or the level of stockpiled rice for some time now,, any news anyone?

[tim armstrong]

The price will keep falling as farmers keep producing to try and get money back for previously produced rice that they STILL have not been paid for. I wonder if anyone is monitoring the quality of the lower priced rice. Could it be coming from the stockpile ? The price will get even lower, when India releases its stockpile.

[edwinchester]

Yes more bad news for the rice pledging scheme. I cannot see anyway out of this mess for Thailand expect long term debt.

The rice is going to rot before it is sold. The best thing they can do is sell it all at the current market price and negotiate a long term payment plan for the shortfall with the AG bank.

At least that way the country can try and start to compete effectively back in the global market and rebuild its exports (without the scheme of course).

In the meantime what on earth do the poor farmers do?

Haven't heard anything about the farmers not being paid or the level of stockpiled rice for some time now,, any news anyone?

Father in law and the guy who rents wifeys paddy are still waiting since October. Have been told 'next month' ever since November.

[MRTHAIBRI]

In laws in the same position. I've tried to convince them they need to diversify but they just don't understand. Don't think we will be planting this season. Weather predictions are not looking good to get a decent crop.