ITD to reclaim Thai rice reputation

[webfact]

ITD to reclaim Thai rice reputation



BANGKOK: -- The Internal Trade Department is preparing to reclaim the reputation of Thai rice as the best in the world.

In addition, it has come up with measures to ensure that the price of rice in 2014-2015 will not fall below 8,500 baht per ton.

Ms Jintana Chaiyawannakarn, the acting director-general of the Department of Internal Trade, stated that the department has been tasked with the job of recovering the reputation and prestige of Thai rice in the global market.

The aim is for Thailand to reclaim its place at the best producer of rice in the world, and is in line with the objective of the National Council for Peace and Order (NCPO) that indicates that the price of rice should not fall below 8,500 baht per ton.

In accordance with this, she said measures will be put in place to look after local rice prices and the welfare of farmers.

She said the measures involved having rice mills buy rice at 100-200 baht per ton higher than the market price when the price usually drops during the months of November to January.

The rice mills will then stockpile the grain for 3-6 months waiting for the right time to release it back to the market.

Although off season rice crops will not be allowed into the programs, they will receive the benefit of price control measures.

The plan is for these price control measures to be self sustaining and not directly burden government budgetary concerns.

The government will no longer buy rice directly from farmers, as it is not capable of maintaining the quality of the huge amount of rice in stocks as evidenced by what had happened in the past.

Wet season rice or main crops for the year 2013/2014 which is expected to enter the market by November of this year will be under the care of government price intervention policies in the event that prices fall below expectations, she said.

This will be achieved by rice millers and exporters who will have to purchase rice from farmers at market lead price or about 8,500 baht per ton.

Should prices continue fall then the government will directly intervene on the behalf of millers and exporters by providing reduction in interest rates of 3 %.

She said rice mills joining this scheme would be entitled to the compensation based on the amount paid for the rice.

The compensation would be made through the financial institutions the rice millers are currently doing business with.

Source: http://englishnews.thaipbs.or.th/itd-reclaim-thai-rice-reputation/


-- Thai PBS 2014-07-16

[clockman]

Brave words! we shall see?

[terryp]

another day another boring "we are the best claim"

[Thai at Heart]

Who told them it was the best rice in the world, or did they end up deciding this themselves?

[noitom]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Who told them it was the best rice in the world, or did they end up deciding this themselves?

They decide in their own minds - Thais always do it this way.

[noitom]

They are "reclaiming" these Thais, they are always reclaiming and stating, but never executing on the plan. But they will continually reclaim.

[Pib]

From guaranteeing 15,000 baht/ton under the rice pledging scheme to the approx market place price of 8,500 baht/ton has surely got to be a be shock to rice farmers income. Guess it was good for the few years it lasted...good for the Thai rice farmer but not good for the Thai taxpayer.

[apetley]

http://www.nationmultimedia.com/national/Cambodian-Jasmine-rice-wins-worlds-best-30220305.html

[TimCM]

Another claim of being the best in the world without any thing to back this up

Wake up Thailand, outside of prostitution, you are no where near number 1 in any industry

[Hawk]

Thailand will never regain its former title, buyers remember being sold sub standard rice, rice with stones in it, good rice mixed with bad rice etc. Now all buyers are vary of buying anything Thai, rice, shrimps, chicken, etc.

[ramrod711]

She said the measures involved having rice mills buy rice at 100-200 baht per ton higher than the market price when the price usually drops during the months of November to January.

The rice mills will then stockpile the grain for 3-6 months waiting for the right time to release it back to the market.

But, but, paying a higher price than the market price didn't work out so well last time. Would this "policy" be an admission that the rice scheme was A "GREAT IDEA", I hope not.

[Lupatria]

And Charles Manson claims he's innocent...

[Local Drunk]

So what do you do when you're sitting on twenty million metric tons of worthless rice?

You blow sunshine up everyones...

Edited to say metric.

Edited July 16, 2014 by Local Drunk

[Thai at Heart]

She said the measures involved having rice mills buy rice at 100-200 baht per ton higher than the market price when the price usually drops during the months of November to January.

The rice mills will then stockpile the grain for 3-6 months waiting for the right time to release it back to the market.

But, but, paying a higher price than the market price didn't work out so well last time. Would this "policy" be an admission that the rice scheme was A "GREAT IDEA", I hope not.

You see, what they should do, is give quotas to the farmers, and then the farmers can contract their supply to a mill at a promised minimum price ahead of the crop. the govt should tender to buy everything at that minimum if no one else buys it.

Then the mill can finance the growers through their growing season with advances, and on the final day of the contract after negotiation, the farmer delivers his product for a given market price. The minimum is set in the market, but of course, the farmer can take his stuff to the govt for minimum and the mill risks losing all the advance.

Of course what you need is competition in the market. A lot more exporters to shake it up and give some power to the farmers instead of all the risk sitting absolutely with the farmer.

[dcutman]

She said the measures involved having rice mills buy rice at 100-200 baht per ton higher than the market price when the price usually drops during the months of November to January.

The rice mills will then stockpile the grain for 3-6 months waiting for the right time to release it back to the market.

But, but, paying a higher price than the market price didn't work out so well last time. Would this "policy" be an admission that the rice scheme was A "GREAT IDEA", I hope not.

You see, what they should do, is give quotas to the farmers, and then the farmers can contract their supply to a mill at a promised minimum price ahead of the crop. the govt should tender to buy everything at that minimum if no one else buys it.

Then the mill can finance the growers through their growing season with advances, and on the final day of the contract after negotiation, the farmer delivers his product for a given market price. The minimum is set in the market, but of course, the farmer can take his stuff to the govt for minimum and the mill risks losing all the advance.

Of course what you need is competition in the market. A lot more exporters to shake it up and give some power to the farmers instead of all the risk sitting absolutely with the farmer.

Or better yet, other than subsistence farmers, get out of the rice growing biz and get on growing something that makes some money.

Rice seems to be the least profitable crop grown in Thailand by a long way. According to the article in one of the papers today.

I was also reading an article in yahoo news about the new 2014 U.S. farm bill now allow farmers to grow Hemp. Many farmers doing back flips as profit margins are now double that over wheat and soy beans. I think hemp would grow just fine in Thailand.

[Thai at Heart]

She said the measures involved having rice mills buy rice at 100-200 baht per ton higher than the market price when the price usually drops during the months of November to January.

The rice mills will then stockpile the grain for 3-6 months waiting for the right time to release it back to the market.

But, but, paying a higher price than the market price didn't work out so well last time. Would this "policy" be an admission that the rice scheme was A "GREAT IDEA", I hope not.

You see, what they should do, is give quotas to the farmers, and then the farmers can contract their supply to a mill at a promised minimum price ahead of the crop. the govt should tender to buy everything at that minimum if no one else buys it.

Then the mill can finance the growers through their growing season with advances, and on the final day of the contract after negotiation, the farmer delivers his product for a given market price. The minimum is set in the market, but of course, the farmer can take his stuff to the govt for minimum and the mill risks losing all the advance.

Of course what you need is competition in the market. A lot more exporters to shake it up and give some power to the farmers instead of all the risk sitting absolutely with the farmer.

Or better yet, other than subsistence farmers, get out of the rice growing biz and get on growing something that makes some money.

Rice seems to be the least profitable crop grown in Thailand by a long way. According to the article in one of the papers today.

I was also reading an article in yahoo news about the new 2014 U.S. farm bill now allow farmers to grow Hemp. Many farmers doing back flips as profit margins are now double that over wheat and soy beans. I think hemp would grow just fine in Thailand.

Absolutely, but what to do with all the bazillionaire rice exporters who need their 10mn tonnes of extra rice every year and have paid off successive governments of all colour to keep them chasing this crop?

[dcutman]

She said the measures involved having rice mills buy rice at 100-200 baht per ton higher than the market price when the price usually drops during the months of November to January.

The rice mills will then stockpile the grain for 3-6 months waiting for the right time to release it back to the market.

But, but, paying a higher price than the market price didn't work out so well last time. Would this "policy" be an admission that the rice scheme was A "GREAT IDEA", I hope not.

You see, what they should do, is give quotas to the farmers, and then the farmers can contract their supply to a mill at a promised minimum price ahead of the crop. the govt should tender to buy everything at that minimum if no one else buys it.

Then the mill can finance the growers through their growing season with advances, and on the final day of the contract after negotiation, the farmer delivers his product for a given market price. The minimum is set in the market, but of course, the farmer can take his stuff to the govt for minimum and the mill risks losing all the advance.

Of course what you need is competition in the market. A lot more exporters to shake it up and give some power to the farmers instead of all the risk sitting absolutely with the farmer.

Or better yet, other than subsistence farmers, get out of the rice growing biz and get on growing something that makes some money.

Rice seems to be the least profitable crop grown in Thailand by a long way. According to the article in one of the papers today.

I was also reading an article in yahoo news about the new 2014 U.S. farm bill now allow farmers to grow Hemp. Many farmers doing back flips as profit margins are now double that over wheat and soy beans. I think hemp would grow just fine in Thailand.

Absolutely, but what to do with all the bazillionaire rice exporters who need their 10mn tonnes of extra rice every year and have paid off successive governments of all colour to keep them chasing this crop?

Thats an excellent point T@H. But something needs to change, and I am sure the exporters will figure out how to stay bazillionares one way or another.