Thailand regaining rice crown

[webfact]

Kingdom regaining rice crown
Erich Parpart
Petchanet Pratruangkrai
The Nation



But effects of pledging scheme holding back full export potential, summit hears

BANGKOK: -- Thailand is set to regain its crown as the world's No-1 rice exporter, but the consequences of the populist pledging policy of the previous government are still hampering the recovery of the sector, the country's leading exporter of parboiled rice told a major international conference yesterday.

Vichai Sriprasert, president of Riceland International, cited a shortage of dock workers and relatively high export prices - due to too many millers competing for supply from farmers - as problems holding back the industry's return to its full export potential.

Speaking at the three-day "Global Rice Market and Trade Summit", arranged by the International Rice Research Institute (IRRI) in Bangkok, he said the rice-pledging scheme had left the country with 18 million tonnes of stockpiled rice, which must either be exported or consumed domestically before it turned rotten. However, the current shortage of stevedores, resulting from a lower volume of rice exports when the costly scheme was still in effect, has contributed to recent port delays, he told delegates.

Vichai expects the Kingdom to ship around 10 million-12 million tonnes of rice this year, which would make it the world's biggest exporter of the grain once again, but overseas shipments could be even higher - but for the shortage of dock workers.

Last month alone, shipments of around 500,000 tonnes were delayed, mainly due to this factor, he added.

"Thai rice is selling like crazy since we regained our price competitiveness, but we cannot deliver to [meet] demand because of the sins committed by the previous government in the past two to three years," he said.

"We have exported 30-40 per cent less than what we can, due to the rice-pledging scheme, and this has led to a shortage of stevedores, many of whom previously fled the industry due to a lack of jobs - and this problem has resulted in a bottleneck for the export of rice at the moment," he said.

Meanwhile, Vichai said the price of Thai rice, which was now cheaper than that of Vietnam, was still higher than what it should be due to millers increasingly competing for supply.

This has been caused by the same populist policy, as more millers entered the market during the period when the "disastrous" subsidy scheme was implemented, he explained.

He said the number of millers had increased over the past two to three years as they had been able to profit from and take advantage of the corruption that surrounded the "price-distortion scheme", and now there were three times more millers than needed for the overall supply of rice.

In other news, Samarendu Mohanty, head of the Social Sciences Division at the IRRI, told the summit that cyclone Hudhud had damaged around 500,000 hectares of rice fields in India and that this, along with other effects from drought and flood problems in the previous growing season, had lowered the country's rice production to about 100 million tonnes this year. India is also likely to export less next year, due to the expected increase in competition from Thailand, he added.

India produced 106 million tonnes of rice last year, and normally exports around 10 million tonnes per year. While the export amount is expected to be in this region this year, it could fall to around 7-8 million tonnes in 2015, since Thailand is going to find a way to offload its 18 million tonnes of overstock, said Mohanty.

Meanwhile, the effect of the Ebola epidemic in Guinea, Liberia and Sierra Leone will have damaged India's rice exports more than Thailand's, since India supplies 70 per cent of the 900,000 tonnes imported annually by the three countries,

The Commerce Ministry's third auction for 207,000 tonnes of rice attracted many traders offering good prices, encouraging the ministry to continue with the fourth bidding next month.

Source: http://www.nationmultimedia.com/business/Kingdom-regaining-rice-crown-30246442.html


-- The Nation 2014-10-29

[chooka]

Thailand announced 3 weeks ago that they had the N# title back. What happened since then did they lose it again or is this just more hot smelly air being blown in the faces of the people to maintain the 93.6% popularity for the dear leader.

[Commerce]

Thailand announced 3 weeks ago that they had the N# title back. What happened since then did they lose it again or is this just more hot smelly air being blown in the faces of the people to maintain the 93.6% popularity for the dear leader.

Steve Dores fixed it.

[leko]

It will be quite the achievement if they can reverse the loss of the crown by the bumbling, corrupt, incompetent prior administration.

[noitom]

Thailand should stand up and donate a few 100,000 tons of rice to Ebola stricken countries in Africa. Thais never help anyone in the world.

[NongKhaiKid]

Thailand announced 3 weeks ago that they had the N# title back. What happened since then did they lose it again or is this just more hot smelly air being blown in the faces of the people to maintain the 93.6% popularity for the dear leader.

More confusion as dear leader said a couple of days ago that LoS would be No. 1 again in 2015 !

[NongKhaiKid]

I confess i know nothing about the rice industry so hope someone can say where all the rice for sale is coming from ?

The BP has an article on the aftermath of the rice pledging scheme which says 90% of stocks in govt warehouses is tainted, or worse.

[Robby nz]

No need to rejoice till the reputation for the best rice is recovered after being ruined by the previous administration and the worlds top price for the best rice is achieved.

Low prices will have to be expected as long as a stockpile exists and is in competition with farmers new seasons rice.

The shortage of stevedores and the increase in the number of rice millers is yet another consequence of a disastrous pledging scheme.

[Robby nz]

I confess i know nothing about the rice industry so hope someone can say where all the rice for sale is coming from ?

The BP has an article on the aftermath of the rice pledging scheme which says 90% of stocks in govt warehouses is tainted, or worse.

They are auctioning what is salable from the stockpiles and those bidding at the auctions are given the opportunity to inspect what is put up for sale before bidding.

In other words the buyers know what they are bidding on and where it is coming from.

They then have a come back if what is delivered is not what they saw before bidding.

I would imagine that they would get the correct product delivered for if they did not they would never buy again and the story would soon get around world markets.

As it did when the previous administration sold inferior rice to Iran, Ivory Coast and the US.

[brucec64]

No need to rejoice till the reputation for the best rice is recovered after being ruined by the previous administration and the worlds top price for the best rice is achieved.

Low prices will have to be expected as long as a stockpile exists and is in competition with farmers new seasons rice.

The shortage of stevedores and the increase in the number of rice millers is yet another consequence of a disastrous pledging scheme.

And yet, the current administration has just implemented a rice mortgage scheme.

http://www.thaivisa.com/forum/index.php?/topic/771195-Mortgage-scheme-offered-to-rice-farmers-to-delay-supply-to-market#entry8580340

The scheme will store rice in government warehouses to be auctioned later. So, except for lower prices, how is this different from the previous scheme, and how is this current scheme suddenly immune from corrupt practices?

[rubl]

Some interesting aspects to the OP.

"relatively high export prices" and "regained our price competitiveness" ?

Furthermore the (almost) glee at India being more effected by the Ebola epidemic in Western Africa seems to ignore that India therefore may have more rice to compete and prices may drop.

Anyway with 18 million tonnes of rice in stock which needs to be off loaded I'm sure Thailand will regain the rice crown, in volumes even

[rubl]

No need to rejoice till the reputation for the best rice is recovered after being ruined by the previous administration and the worlds top price for the best rice is achieved.

Low prices will have to be expected as long as a stockpile exists and is in competition with farmers new seasons rice.

The shortage of stevedores and the increase in the number of rice millers is yet another consequence of a disastrous pledging scheme.

And yet, the current administration has just implemented a rice mortgage scheme.

http://www.thaivisa.com/forum/index.php?/topic/771195-Mortgage-scheme-offered-to-rice-farmers-to-delay-supply-to-market#entry8580340

The scheme will store rice in government warehouses to be auctioned later. So, except for lower prices, how is this different from the previous scheme, and how is this current scheme suddenly immune from corrupt practices?

So, except for lower prices (90% of market value instead of fixed high price of initially 140% of market value) and from the start a maximum per household in tonnes and Baht, and payable to farmers only and with measures implemented to check grains upon delivery to warehouses and with an announced coverage period, etc., etc. the schemes are really the same. To some that would seem.

[stevehaigh]

maybe limiting dock worker hires to people called Steve Dores is the problem, should allow a few Somchai's in there too

[stevehaigh]

maybe limiting dock worker hires to people called Steve Dores is the problem, should allow a few Somchai's in there too

[wabothai]

In light of the recent problems it would be a very nice gesture for Thailand to donate the stockpiles to countries in need. Rather than waiting for a nice price or rotten rice.

[bheard]

The Thai press obviously takes much delight in shouting about being world #1.

You wouldn't think that in my local supermarket in Aus. Years ago I could buy Thai rice at sensible prices but these days not only is it hard to find but it's expensive as well.

I buy Vietnam rice - good quality, plenty of it and reasonable prices.

[klauskunkel]

Thailand regaining rice crown

although it's a bit moldy

[Robby nz]

In light of the recent problems it would be a very nice gesture for Thailand to donate the stockpiles to countries in need. Rather than waiting for a nice price or rotten rice.

They already have donated rice to the Ebola hit countries.

[RustBucket]

No way.

Not until all the rice in stockpiles is gone, will the importers be confident in getting quality latest crop rice.

[Thai at Heart]

I still don't get why anyone thinks this is a good title.

The product can only be grown with a subsidy. Other than that, the farmers would starve.

[Robby nz]

I still don't get why anyone thinks this is a good title.

The product can only be grown with a subsidy. Other than that, the farmers would starve.

Not true.

The farmers were doing OK before Thaksin came along with his first pledging scheme which started a distortion in the market and a subsidy culture, this was followed by the Dems subsidy and so on to the recent pledging scheme which has broken the supply chain by the Govt trying to insert its self into the chain as buyer and storing what it bought.

Now we have a problem of reattaching the chain from farmer to plate. Traders who previously had loyal customers either lost those customers or went elsewhere for rice to supply them.

Customers became cagy about buying Thai rice after poor quality product was sold by the previous administration now these customers must be wooed back as we with see the recent efforts to sell to Iran.

The storing of Thai rice has disrupted the whole world markets and Thai farmers were encouraged to go for quantity over quality.

Getting things back on an even (profitable) keel will not be easy for the effort now must go into producing quality that will achieve a better price.

But hay, those who produce food will never starve.

[marinediscoking]

I still don't get why anyone thinks this is a good title.

The product can only be grown with a subsidy. Other than that, the farmers would starve.

Not true.

The farmers were doing OK before Thaksin came along with his first pledging scheme which started a distortion in the market and a subsidy culture, this was followed by the Dems subsidy and so on to the recent pledging scheme which has broken the supply chain by the Govt trying to insert its self into the chain as buyer and storing what it bought.

Now we have a problem of reattaching the chain from farmer to plate. Traders who previously had loyal customers either lost those customers or went elsewhere for rice to supply them.

Customers became cagy about buying Thai rice after poor quality product was sold by the previous administration now these customers must be wooed back as we with see the recent efforts to sell to Iran.

The storing of Thai rice has disrupted the whole world markets and Thai farmers were encouraged to go for quantity over quality.

Getting things back on an even (profitable) keel will not be easy for the effort now must go into producing quality that will achieve a better price.

But hay, those who produce food will never starve.

What planet are you on to say the rice farmers were doing ok? They have always been the poorest people in Thailand. They have to deal with ruined crops often by too much rain or too little and are forced to sell with little or no profit and are often taken advantage of. Try talking to some of them! About they have food and won't starve. Haven't you heard the stories about only having rice and fish sauce to eat? Guess that's OK to you.

[rickirs]

"We have exported 30-40 per cent less than what we can, due to the rice-pledging scheme, and this has led to a shortage of stevedores, many of whom previously fled the industry due to a lack of jobs"

Part of the shortage was due to delayed rice shipments during the Yingluck administration due to the high cost of shipment compared to the lower price for rice. The result was that many immigrant stevedores went elsewhere to work.

But I believe the shortage of stevedores was also due to the preceived crackdown of the Junta on immigrants, a large number of whom worked for the major stevedore companies but fled back to their countries. From a news source:

--------------------------------------------------------------------

August 29, 2014 6:41 PM

SAMUT PRAKAN, THAILAND—

"Thailand is facing delays in plans to export millions of tons of rice from state stockpiles because of a labor shortage at ports after hundreds of thousands of foreign workers fled amid fears of a military crackdown on illegal migrants."

“Only around 50 percent have come back and we still face a severe lack of labor for rice stevedoring,” said Nontawat Na-rasi, the owner of Srichang Crane & Maritime Co. Ltd., which loads rice for several Thai rice exporters."

“Around 20-30 percent of stevedoring companies are out of business due to labor shortages and that will have an impact on rice exports,” he added.

--------------------------------------------------------------------

Still after another two months the labor shortage continues. Who holds an unelected government accountable for poor decisions?

[Soutpeel]

PM: Only 10 percent of 18 million tonnes of rice in stockpiles are good

Number 1 on whose list ? unless they mean number 1 on the exporting the wonky rice list

[rubl]

"We have exported 30-40 per cent less than what we can, due to the rice-pledging scheme, and this has led to a shortage of stevedores, many of whom previously fled the industry due to a lack of jobs"

Part of the shortage was due to delayed rice shipments during the Yingluck administration due to the high cost of shipment compared to the lower price for rice. The result was that many immigrant stevedores went elsewhere to work.

But I believe the shortage of stevedores was also due to the preceived crackdown of the Junta on immigrants, a large number of whom worked for the major stevedore companies but fled back to their countries. From a news source:

--------------------------------------------------------------------

August 29, 2014 6:41 PM

SAMUT PRAKAN, THAILAND—

"Thailand is facing delays in plans to export millions of tons of rice from state stockpiles because of a labor shortage at ports after hundreds of thousands of foreign workers fled amid fears of a military crackdown on illegal migrants."

“Only around 50 percent have come back and we still face a severe lack of labor for rice stevedoring,” said Nontawat Na-rasi, the owner of Srichang Crane & Maritime Co. Ltd., which loads rice for several Thai rice exporters."

“Around 20-30 percent of stevedoring companies are out of business due to labor shortages and that will have an impact on rice exports,” he added.

--------------------------------------------------------------------

Still after another two months the labor shortage continues. Who holds an unelected government accountable for poor decisions?

Pray tell, which poor decisions? The decision by illegal immigrants to return to their country for fear of a Military Crackdown on Illegal Immigrants?

[fab4]

Pray tell, which poor decisions? The decision by illegal immigrants to return to their country for fear of a Military Crackdown on Illegal Immigrants?

No you're probably right, they were a threat, well, according to the junta anyway.

Army spokesperson Sirichan Ngathong justified the crackdown and said, “We see illegal workers as a threat because there were a lot of them and no clear measures to handle them, which could lead to social problems”. She said that anyone in the country illegally working will be arrested and deported.

These Cambodians are mostly low-skilled workers who form some of the most vulnerable members of the working class. Among the 3 million foreign workers in Thailand, there are an estimated 800,000 undocumented ones who are exploited for cheap labor.

Many believe that these workers are being made scapegoats by the Thai government who are whipping up nationalism and xenophobia to divert attention away from issues of democratic rights and living standards.

http://www.igogcc.org/200000-cambodian-workers-flee-thailand-amid-military-crackdown/

[rubl]

Pray tell, which poor decisions? The decision by illegal immigrants to return to their country for fear of a Military Crackdown on Illegal Immigrants?

No you're probably right, they were a threat, well, according to the junta anyway.

Army spokesperson Sirichan Ngathong justified the crackdown and said, “We see illegal workers as a threat because there were a lot of them and no clear measures to handle them, which could lead to social problems”. She said that anyone in the country illegally working will be arrested and deported.

These Cambodians are mostly low-skilled workers who form some of the most vulnerable members of the working class. Among the 3 million foreign workers in Thailand, there are an estimated 800,000 undocumented ones who are exploited for cheap labor.

Many believe that these workers are being made scapegoats by the Thai government who are whipping up nationalism and xenophobia to divert attention away from issues of democratic rights and living standards.

http://www.igogcc.org/200000-cambodian-workers-flee-thailand-amid-military-crackdown/

So the suggestion in the OP was incorrect. Imagine!

Mind you 800,000 undocumented, exploited foreign workers is something even 'democratic' countries try to do something about. Of course they phrase it much more friendly

"In July 2013, the Home Office introduced an advertising lorry in London with its billboard saying "In the UK illegally? — GO HOME OR FACE ARREST — Text HOME to 78070 for free advice, and help with travel documents. We can help you return home voluntarily without fear of arrest or detention.""

http://en.wikipedia.org/wiki/Illegal_immigration_in_the_United_Kingdom

[englishoak]

Being no1 for crap and rotten rice dosnt seem very prestigious to me.

[Thai at Heart]

I still don't get why anyone thinks this is a good title.

The product can only be grown with a subsidy. Other than that, the farmers would starve.

Not true.

The farmers were doing OK before Thaksin came along with his first pledging scheme which started a distortion in the market and a subsidy culture, this was followed by the Dems subsidy and so on to the recent pledging scheme which has broken the supply chain by the Govt trying to insert its self into the chain as buyer and storing what it bought.

Now we have a problem of reattaching the chain from farmer to plate. Traders who previously had loyal customers either lost those customers or went elsewhere for rice to supply them.

Customers became cagy about buying Thai rice after poor quality product was sold by the previous administration now these customers must be wooed back as we with see the recent efforts to sell to Iran.

The storing of Thai rice has disrupted the whole world markets and Thai farmers were encouraged to go for quantity over quality.

Getting things back on an even (profitable) keel will not be easy for the effort now must go into producing quality that will achieve a better price.

But hay, those who produce food will never starve.

Um. Considering that in reality, rice farming in the developed world gets one just a bare half step beyond subsistence level, I thing describing it as "doing OK" is a bit of a stretch.

How many rural villages could you honestly describe as prosperous? I've been in some that would be described as downright poor house.

So, no they haven't been doing well at this, ever. It feeda them and it allows them to make some money, but high living it isn't. And it's been that way for decades.