Thai Commerce Ministry confident price of rice to top 15,000 baht

[webfact]

Commerce Ministry confident price of rice to top 15,000 baht

BANGKOK: -- The Minister of Commerce, with the cooperation of large producers, has launched a low-priced products initiative and predicted that the next crop of rice will fetch farmers no less that 15,000 Baht/ton

General Chatchai Sarikalaya, the Minister of Commerce, has held a meeting with other top officials within the minister on the progress of projects deemed highly beneficial to the nation and the people. According to him, he has been coordinating with large producers in launching the “Popular Brand” initiative to sell quality products below market-price as a New Years gift to the people in line with the Prime Minister’s wishes.

Furthermore, General Chatchai disclosed that the Ministry has reached out to rice traders and exporters on securing a guaranteed price for the 2014-15 crop yields. Assessments of both domestic and foreign markets have indicated that jasmine rice with a moisture content of under 15% should fetch an acceptable medium price of between 15,000 - 16,000 Baht.

-- NNT 2014-10-16

[JOC]

Please someone tell me, how a general now turned politician, can predict the worldmarket price of rice??

Another ricepledging in the making??

[Costas2008]

Please someone tell me, how a general now turned politician, can predict the worldmarket price of rice??

Another ricepledging in the making??

He didn't......the others told him so.

And for your information, when the Thais predict something, it always come true.

Sorry, forgot to say, Me and the Thais

[khwaibah]

BULL SHYT. Even if it did the the issan farmer will be lucky to see 11 to 13 baht per kilo.

[JOC]

Please someone tell me, how a general now turned politician, can predict the worldmarket price of rice??

Another ricepledging in the making??

He didn't......the others told him so.

And for your information, when the Thais predict something, it always come true.

Sorry, forgot to say, Me and the Thais

A Thai-Greek cocktail !! Lord have mercy!

[fab4]

According to him, he has been coordinating with large producers in launching the “Popular Brand” initiative to sell quality products below market-price as a New Years gift to the people in line with the Prime Minister’s wishes.

A slight mistake there, I believe the idea of selling quality products below market-price as a gift to the masses is actually known as the "Populist Brand" initiative

[seajae]

well if this is like every other prediction made by the thai govt officials we all know it is a load of bullsh*t, also have to query how i the hell they can even guess at a future price of rice that is twice what it is selling for now. Time for this one to sack his advisers, sounds they were involved with the last govt too with these claims

[mike324]

I believe what the Minister of Commence is saying is asking large producers of rice to shift their profits to the farmers. After all it is the large producers that are profiting the most throughout the entire rice chain.

If you look at price of Jasmin Rice at tesco lotus, price ranges from 185 to 240 for 5kg bag. 1 kg packs will cost more since you are not purchasing in bulk.

Lets take 5kg bag for example and divide by 185 baht. That equals 37 baht per kilo, multiply that by 1000 which gives you 37000 baht. That's the price per ton on the lower end.

Given that rice producers needs all that fancy machines to process the rice and pack it, they should have a fair margin too, but its all an automated process. Their margins are already pretty high compare to the hard manual labors that rice farmers do.

What the government is getting wrong is that rice producers will never shift their profits, and consumer can only eat so much rice, lower rice price won't make end market consumers eat more rice.

[Ricardo]

And the key phase is "a guaranteed price for the 2014-15 crop yields", wonder what price the older rice will be selling for ?

[bruceybonus]

Jesus wept, if YS's govt had said this, there would be 25 pages already! Transvestite Gerry at al frothing at the mouth like rabid cattle

[Ulic]

Must be the same economists that advised Yingluck.

[MobileContent]

BULL SHYT. Even if it did the the issan farmer will be lucky to see 11 to 13 baht per kilo.

Isaan farmers don't plant much Jasmine rice but you are right the Isaan rice sells for just 11-13 Baht per kilo (uncut).

[bassman]

Everyone needs to remember that they are talking about Jasmine / Hom Mali rice, not the crap often described as 5%broken white rice. White rice is standard crap, American farmers who are the most efficient will not grow it as it is not cost viable. Most of the crap in Thai storage is "white rice".

Thai Jasmine rice on the other hand is a premier crop and is sought world wide. I would agree with the article and I expect close to this price as harvest nears.

Please remember that paddy rice is not store rice, it has to be dried, milled, shipped, processed, graded and packaged to get on your store shelf and at a loss of 25-30% of weight in the process.

[gabruce]

Just checked the quotes from Oryza:

Currently Thai Hommali 92% is quoted at USD$1,015-1,025/ton

Vietnamese Jasmine USD$580-590/ton

It's seems to me quite likely that Hommali producers would make their 15,000thb/ton target. I'm not so confident for other farmers.

Good luck!

[Sydebolle]

Good luck

[Bluespunk]

"Assessments of both domestic and foreign markets have indicated that jasmine rice with a moisture content of under 15% should fetch an acceptable medium price of between 15,000 - 16,000 Baht."

So not offering to buy it at insane prices in some lunatic scheme attempting to control the market price. Soothing words but no pledges.

Still at least this time round no one takes the farmer's rice and then refuses to pay for it.

Edited October 16, 2014 by Bluespunk

[khwaibah]

BULL SHYT. Even if it did the the issan farmer will be lucky to see 11 to 13 baht per kilo.

Isaan farmers don't plant much Jasmine rice but you are right the Isaan rice sells for just 11-13 Baht per kilo (uncut).

Everything in Surin and Buriram is Jasmine. Don't tell me they don't plant much Jasmine rice. B.S.

[bassman]

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

BULL SHYT. Even if it did the the issan farmer will be lucky to see 11 to 13 baht per kilo.

Isaan farmers don't plant much Jasmine rice but you are right the Isaan rice sells for just 11-13 Baht per kilo (uncut).

Everything in Surin and Buriram is Jasmine. Don't tell me they don't plant much Jasmine rice. B.S.

For me and everyone else that lives in this Sakon Nakhon river valley would have to second the B.S., that is our specialty and we do it the best in the world! They line up yearly to buy this product.

[khwaibah]

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

BULL SHYT. Even if it did the the issan farmer will be lucky to see 11 to 13 baht per kilo.

Isaan farmers don't plant much Jasmine rice but you are right the Isaan rice sells for just 11-13 Baht per kilo (uncut).

Everything in Surin and Buriram is Jasmine. Don't tell me they don't plant much Jasmine rice. B.S.

For me and everyone else that lives in this Sakon Nakhon river valley would have to second the B.S., that is our specialty and we do it the best in the world! They line up yearly to buy this product.

I just love those that put mouth in motion before engaging brain.

The best quality Thai Jasmine Rice are grown mainly in the north eastern provinces such as Roi Et, Ubon Ratchathani, Burirum, Sisaket, Surin and Yasothon. Due to the most suitable environment factors, such as the ample amount sunlight throughout the year, amount of rainfall, the best taste of Thai Fragrance Rice can only be grown in these provinces."

http://www.ccicthai.com/index.php?langtype=en&pageid=en_24

[Jip99]

Everyone needs to remember that they are talking about Jasmine / Hom Mali rice, not the crap often described as 5%broken white rice. White rice is standard crap, American farmers who are the most efficient will not grow it as it is not cost viable. Most of the crap in Thai storage is "white rice".

Thai Jasmine rice on the other hand is a premier crop and is sought world wide. I would agree with the article and I expect close to this price as harvest nears.

Please remember that paddy rice is not store rice, it has to be dried, milled, shipped, processed, graded and packaged to get on your store shelf and at a loss of 25-30% of weight in the process.

Types and Grades of rice are listed here. The best website for more information is here:- http://www.thairiceexporters.or.th/Thai%20rice%20standards.htm

32. Types of rice are divided into 4 types as follows:

32.1 White rice

32.2 Cargo rice (Loonzain rice, Brown rice, Husked rice)

32.3 White glutinous rice

32.4 Parboiled rice

33. Grades of White rice are divided into 13 grades as follows:

33.1 White rice 100% Grade A

33.2 White rice 100% Grade B

33.3 White rice 100% Grade C

33.4 White rice 5%

33.5 White rice 10%

33.6 White rice 15%

33.7 White rice 25% Super

33.8 White rice 25%

33.9 White rice 35%

33.10 White rice 45%

33.11 White broken rice A1 Extra Super

33.12 White broken rice A1 Super

33.13 White broken rice A1 Special

[bassman]

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

Everyone needs to remember that they are talking about Jasmine / Hom Mali rice, not the crap often described as 5%broken white rice. White rice is standard crap, American farmers who are the most efficient will not grow it as it is not cost viable. Most of the crap in Thai storage is "white rice".

Thai Jasmine rice on the other hand is a premier crop and is sought world wide. I would agree with the article and I expect close to this price as harvest nears.

Please remember that paddy rice is not store rice, it has to be dried, milled, shipped, processed, graded and packaged to get on your store shelf and at a loss of 25-30% of weight in the process.

Types and Grades of rice are listed here. The best website for more information is here:- http://www.thairiceexporters.or.th/Thai%20rice%20standards.htm

32. Types of rice are divided into 4 types as follows:
32.1 White rice
32.2 Cargo rice (Loonzain rice, Brown rice, Husked rice)
32.3 White glutinous rice
32.4 Parboiled rice
33. Grades of White rice are divided into 13 grades as follows:
33.1 White rice 100% Grade A
33.2 White rice 100% Grade B
33.3 White rice 100% Grade C
33.4 White rice 5%
33.5 White rice 10%
33.6 White rice 15%
33.7 White rice 25% Super
33.8 White rice 25%
33.9 White rice 35%
33.10 White rice 45%
33.11 White broken rice A1 Extra Super
33.12 White broken rice A1 Super
33.13 White broken rice A1 Special

But see this is all "white rice" which basically means rice that has been polished...unspecified. Top quality Jasmine is sold separate from these broad markets.

[bassman]

Just checked the quotes from Oryza:

Currently Thai Hommali 92% is quoted at USD$1,015-1,025/ton

Vietnamese Jasmine USD$580-590/ton

It's seems to me quite likely that Hommali producers would make their 15,000thb/ton target. I'm not so confident for other farmers.

Good luck!

Good to see members with research capability! ...Thanks, I'm just a farmer, with local knowledge and advice from a couple of nearby mills. But with Thai Jasmine almost doubling the price of Viet Jasmine sure says a lot.

[englishoak]

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

Everyone needs to remember that they are talking about Jasmine / Hom Mali rice, not the crap often described as 5%broken white rice. White rice is standard crap, American farmers who are the most efficient will not grow it as it is not cost viable. Most of the crap in Thai storage is "white rice".

Thai Jasmine rice on the other hand is a premier crop and is sought world wide. I would agree with the article and I expect close to this price as harvest nears.

Please remember that paddy rice is not store rice, it has to be dried, milled, shipped, processed, graded and packaged to get on your store shelf and at a loss of 25-30% of weight in the process.

Types and Grades of rice are listed here. The best website for more information is here:- http://www.thairiceexporters.or.th/Thai%20rice%20standards.htm

32. Types of rice are divided into 4 types as follows:

32.1 White rice

32.2 Cargo rice (Loonzain rice, Brown rice, Husked rice)

32.3 White glutinous rice

32.4 Parboiled rice

33. Grades of White rice are divided into 13 grades as follows:

33.1 White rice 100% Grade A

33.2 White rice 100% Grade B

33.3 White rice 100% Grade C

33.4 White rice 5%

33.5 White rice 10%

33.6 White rice 15%

33.7 White rice 25% Super

33.8 White rice 25%

33.9 White rice 35%

33.10 White rice 45%

33.11 White broken rice A1 Extra Super

33.12 White broken rice A1 Super

33.13 White broken rice A1 Special

But see this is all "white rice" which basically means rice that has been polished...unspecified. Top quality Jasmine is sold separate from these broad markets.

Problem with hom mali is its not special but just another white rice.

Its actually no better than any other polished white rice and just a marketing gimmick driven by Thai business.

As far as using it, its great with Thai food but not much use with other world food where other rice works and compliments far better than Jasmine.

Since the rice debarcle most Thais I know outside Thailand arnt even buying produce of Thailand Hom Mali for fear of it being both old and inferior quality. There are other producers with less risk of contamination. Even tescos have stopped stocking much Hom Mali from Thailand, where they used to have 5 Hom Mali options they now have just one.

Deflation is taking a hold on world markets for the immediate future, I dont see rice going up much in the next few years

[rickirs]

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

"Assessments of both domestic and foreign markets have indicated that jasmine rice with a moisture content of under 15% should fetch an acceptable medium price of between 15,000 - 16,000 Baht."

So not offering to buy it at insane prices in some lunatic scheme attempting to control the market price. Soothing words but no pledges.

Still at least this time round no one takes the farmer's rice and then refuses to pay for it.

No one refused to pay farmers for their rice - you know better.

Yingluck was not allowed as an interim government to borrow the funds to pay farmers as per the EC and Constitutional Court. The GSB also refused to loan funds as well as 3rd party banks under pressure from the PDRC. Fortunately for the rice farmers, the military coup abolished the constitution and so was able to borrow the funds to make a payoff.

[bassman]

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

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

Everyone needs to remember that they are talking about Jasmine / Hom Mali rice, not the crap often described as 5%broken white rice. White rice is standard crap, American farmers who are the most efficient will not grow it as it is not cost viable. Most of the crap in Thai storage is "white rice".

Thai Jasmine rice on the other hand is a premier crop and is sought world wide. I would agree with the article and I expect close to this price as harvest nears.

Please remember that paddy rice is not store rice, it has to be dried, milled, shipped, processed, graded and packaged to get on your store shelf and at a loss of 25-30% of weight in the process.

Types and Grades of rice are listed here. The best website for more information is here:- http://www.thairiceexporters.or.th/Thai%20rice%20standards.htm

32. Types of rice are divided into 4 types as follows:
32.1 White rice
32.2 Cargo rice (Loonzain rice, Brown rice, Husked rice)
32.3 White glutinous rice
32.4 Parboiled rice
33. Grades of White rice are divided into 13 grades as follows:
33.1 White rice 100% Grade A
33.2 White rice 100% Grade B
33.3 White rice 100% Grade C
33.4 White rice 5%
33.5 White rice 10%
33.6 White rice 15%
33.7 White rice 25% Super
33.8 White rice 25%
33.9 White rice 35%
33.10 White rice 45%
33.11 White broken rice A1 Extra Super
33.12 White broken rice A1 Super
33.13 White broken rice A1 Special

But see this is all "white rice" which basically means rice that has been polished...unspecified. Top quality Jasmine is sold separate from these broad markets.

Problem with hom mali is its not special but just another white rice.

Its actually no better than any other polished white rice and just a marketing gimmick driven by Thai business.

As far as using it, its great with Thai food but not much use with other world food where other rice works and compliments far better than Jasmine.

Since the rice debarcle most Thais I know outside Thailand arnt even buying produce of Thailand Hom Mali for fear of it being both old and inferior quality. There are other producers with less risk of contamination. Even tescos have stopped stocking much Hom Mali from Thailand, where they used to have 5 Hom Mali options they now have just one.

Deflation is taking a hold on world markets for the immediate future, I dont see rice going up much in the next few years

I must differ from your opinion of Hom Mali being a gimmick. What other rice are you referring to as superior? I will give you Paki Basmati as the undisputed champ, but who next? Jasmine is far superior to "white rice", on what do you base this statement that Jasmine is the same as white rice? The problem with the whole Yingluck program was the guarantee that white rice would bring 15,000 bht a kilo is what clogged the warehouses. Jasmine never set...and is most probably been substituted over the time by white rice. I must disagree with you totally as your post is without basis.

[Thai at Heart]

I believe what the Minister of Commence is saying is asking large producers of rice to shift their profits to the farmers. After all it is the large producers that are profiting the most throughout the entire rice chain.

If you look at price of Jasmin Rice at tesco lotus, price ranges from 185 to 240 for 5kg bag. 1 kg packs will cost more since you are not purchasing in bulk.

Lets take 5kg bag for example and divide by 185 baht. That equals 37 baht per kilo, multiply that by 1000 which gives you 37000 baht. That's the price per ton on the lower end.

Given that rice producers needs all that fancy machines to process the rice and pack it, they should have a fair margin too, but its all an automated process. Their margins are already pretty high compare to the hard manual labors that rice farmers do.

What the government is getting wrong is that rice producers will never shift their profits, and consumer can only eat so much rice, lower rice price won't make end market consumers eat more rice.

One number you missed is the milling and moisture loss.

It has to be dried to 12% from delivery moisture which can be 5% and then the processing loss can be up to 50%

15000 to the farmer can easily 30,000 when shipping and packaging is rolled in before anyone makes a baht profit.

[Thai at Heart]

I believe what the Minister of Commence is saying is asking large producers of rice to shift their profits to the farmers. After all it is the large producers that are profiting the most throughout the entire rice chain.

If you look at price of Jasmin Rice at tesco lotus, price ranges from 185 to 240 for 5kg bag. 1 kg packs will cost more since you are not purchasing in bulk.

Lets take 5kg bag for example and divide by 185 baht. That equals 37 baht per kilo, multiply that by 1000 which gives you 37000 baht. That's the price per ton on the lower end.

Given that rice producers needs all that fancy machines to process the rice and pack it, they should have a fair margin too, but its all an automated process. Their margins are already pretty high compare to the hard manual labors that rice farmers do.

What the government is getting wrong is that rice producers will never shift their profits, and consumer can only eat so much rice, lower rice price won't make end market consumers eat more rice.

One number you missed is the milling and moisture loss.

It has to be dried to 12% from delivery moisture which can be 5% and then the processing loss can be up to 50%

15000 to the farmer can easily 30,000 when shipping and packaging is rolled in before anyone makes a baht profit.

[Thai at Heart]

I believe what the Minister of Commence is saying is asking large producers of rice to shift their profits to the farmers. After all it is the large producers that are profiting the most throughout the entire rice chain.

If you look at price of Jasmin Rice at tesco lotus, price ranges from 185 to 240 for 5kg bag. 1 kg packs will cost more since you are not purchasing in bulk.

Lets take 5kg bag for example and divide by 185 baht. That equals 37 baht per kilo, multiply that by 1000 which gives you 37000 baht. That's the price per ton on the lower end.

Given that rice producers needs all that fancy machines to process the rice and pack it, they should have a fair margin too, but its all an automated process. Their margins are already pretty high compare to the hard manual labors that rice farmers do.

What the government is getting wrong is that rice producers will never shift their profits, and consumer can only eat so much rice, lower rice price won't make end market consumers eat more rice.

One number you missed is the milling and moisture loss.

It has to be dried to 12% from delivery moisture which can be 5% and then the processing loss can be up to 50%

15000 to the farmer can easily 30,000 when shipping and packaging is rolled in before anyone makes a baht profit.

[Thai at Heart]

I believe what the Minister of Commence is saying is asking large producers of rice to shift their profits to the farmers. After all it is the large producers that are profiting the most throughout the entire rice chain.

If you look at price of Jasmin Rice at tesco lotus, price ranges from 185 to 240 for 5kg bag. 1 kg packs will cost more since you are not purchasing in bulk.

Lets take 5kg bag for example and divide by 185 baht. That equals 37 baht per kilo, multiply that by 1000 which gives you 37000 baht. That's the price per ton on the lower end.

Given that rice producers needs all that fancy machines to process the rice and pack it, they should have a fair margin too, but its all an automated process. Their margins are already pretty high compare to the hard manual labors that rice farmers do.

What the government is getting wrong is that rice producers will never shift their profits, and consumer can only eat so much rice, lower rice price won't make end market consumers eat more rice.

One number you missed is the milling and moisture loss.

It has to be dried to 12% from delivery moisture which can be 5% and then the processing loss can be up to 50%

15000 to the farmer can easily 30,000 when shipping and packaging is rolled in before anyone makes a baht profit.

[Strangebrew]

Breaking news: Thailand invented new rice they crossed bred genes of soi dog with rice genes now Rice can fetch Cambodia and Vietnam Sitting and begging for new rice. New rice named Jasmine Soi dog Super rice. Right you will get 15,000 baht price for your rice when Pigs fly. You do better saying your rice cures Ebola. Oh sorry you already have cure for Ebola.

Edited October 16, 2014 by Strangebrew