Thai Commerce Min: Latest round of rice auction fetches good prices

[webfact]

Commerce Min: Latest round of rice auction fetches good prices

BANGKOK, 29 October 2014 (NNT) – The Ministry of Commerce has expressed satisfaction with the outcome of the third round of bidding for over 200,000 tons of rice from the government’s stockpile.

After receiving approval from the Rice Policy and Management Committee, the Commerce Ministry has opened the third rice auction of the year, with a total of 207,000 tons put up for grabs. The lot comprised 76,000 tons of white rice with 5 percent moisture content and 131,000 tons of broken rice.

At the end of the bidding process, 18 out of 37 bidders were declared winners, securing a combined 203,000 tons of the rice. The prices offered for the white rice ranged from 10,700-12,180 baht a ton while the broken rice sold for 7,000-8,660 baht a ton.

Director-General of the Department of Foreign Trade Duangporn Rodphaya said the results were satisfactory, given the high turnout of participants and the high prices offered. The department will continue to seek permission from the Rice Policy and Management Committee to arrange more auctions in the future.


-- NNT 2014-10-29

[Robby nz]

Good that they are getting rid of some of the stockpile but the prices are still very low considering they are for the finished product and the purchase price of 15,000 per ton was for paddy.

Once the processing costs and losses, storage, cartage, sales costs and other costs are factored in the loss is huge.

I only hope that these sales will not have a detrimental effect on the prices offered for new seasons rice.

However there is no doubt that what is salable from the stockpiles must be sold to prevent farther spoilage and cut down ongoing storage costs for the longer it is held the greater the loss will be.

[phantomfiddler]

And how much are we bidding for this fine array of decomposing , bird dropping contaminated, bug infested rice ? Come on, bidders, who,ll make the first bid ? Yabada yabada yabada yak, yes we have a thousand baht from the gentleman in the dark glasses !

[RustBucket]

Good that they are getting rid of some of the stockpile but the prices are still very low considering they are for the finished product and the purchase price of 15,000 per ton was for paddy.

Once the processing costs and losses, storage, cartage, sales costs and other costs are factored in the loss is huge.

I only hope that these sales will not have a detrimental effect on the prices offered for new seasons rice.

However there is no doubt that what is salable from the stockpiles must be sold to prevent farther spoilage and cut down ongoing storage costs for the longer it is held the greater the loss will be.

At those prices I can guarantee that this is latest crop rice.

There will be nothing from 2012-2013 stock in any of that. The markets won't take it. They only buy latest crop, that is across the board in all agro produce markets.

If they find it mixed with old stock, they will blacklist Thailand. Simple as that. They WILL test it to make sure. These rice exporters know what is what with this country and its rice situation.

The old rice will never be sold as rice, it will be sold off as animal feed or for ethanol or something other than eating rice.

[RustBucket]

And how much are we bidding for this fine array of decomposing , bird dropping contaminated, bug infested rice ? Come on, bidders, who,ll make the first bid ? Yabada yabada yabada yak, yes we have a thousand baht from the gentleman in the dark glasses !

It won't be sold at open auction.

The commerce ministry will have a secret reserve price per tonne on it, and the bidders give sealed bids in an envelope, and once all the bids are in the rice goes to all those who offered above the reserve price, the rest of the bids below the secret reserve will be rejected.

Hence, 18 bids out of 37 were accepted and were between 10,700-12,180 per tonne. I expect the commerce ministry's reserve was set at 10,000 baht.

[rickirs]

The "good" prices are not enough. But it is maybe a "good" thing that none of the current government officials can be charged with possible criminal negligence for another failed pledge program as they are not subject to any rule of law.

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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

[peterdarby]

Excellent, considering the world rice prices are pretty low at the moment. The big problem is that only 10% of the rice bought under the pledging scheme is any good.

[Toknarok]

How many members of this forum are experts on the quality of rice? Do you know if it is sub standard or not? Who sets the standard. Do we know whether the statement that 90% of the rice is rotten is true or not, or is it a ploy to discredit the previous government?. Quite frankly I don't trust ANY pronouncement from authorities (of whatever political persuasion) as far as I could throw them.

[dcutman]

How many members of this forum are experts on the quality of rice? Do you know if it is sub standard or not? Who sets the standard. Do we know whether the statement that 90% of the rice is rotten is true or not, or is it a ploy to discredit the previous government?. Quite frankly I don't trust ANY pronouncement from authorities (of whatever political persuasion) as far as I could throw them.

Panties twisted up, are they?

I dont believe anybody needs a ploy to discredit the YS govt.