More than 200,000 tons of Thai rice sold in the latest round of auction

[webfact]

More than 200,000 tons of rice sold in the latest round of auction

BANGKOK, 23 Dec 2014 (NNT) - A total of 246,000 tons out of the 400,000 tons of rice were sold in the 4th round of auction this year with 21 companies able to clinch the deal, out of the 34 participants.

The Department of Foreign Trade would officially announce the auction result at a later date after receiving the approval from the National Rice Policy Committee which is expected to meet after the New Year’s holiday.

The Government would seek to strike a deal with the private sector on the remaining 150,000 tons, whose prices in the last round of auction were still lower than the minimum prices.

Meanwhile, Director-General of the Department of Foreign Trade Duangporn Rodphaya stated that this year’s rice exports should be as high as 10.7 million tons worth about 5 billion US dollars. She predicted that next year’s volume would be slightly lower, but the value would increase to 5.2 - 5.3 billion US dollars, due to lower global output affected by natural disasters and drought, contrary to the rising demand.


-- NNT 2014-12-23

[worgeordie]

Wonder how much loss was made on the sale,guess

we will never know it will be a state secret.only a few

more million tons to go.

regards Worgeordie

[rasmus5150]

I would like to know who bought the rice, so I can avoid buying it when it has been repacked. But I guess it will be better eating Vietnamese rice for a couple of years just to be safe.

[JOC]

>>The Department of Foreign Trade would officially announce the auction result at a later date after receiving the approval from the National Rice Policy Committee which is expected to meet after the New Year’s holiday.<<

They are up to their eyeballs in rice, manage to sell some of it, and still have to wait for NRPC to meet some time after the New Years holiday, to approve the sale??

Ever heard of: ACTION??

A video conference and the sale could have been approved yesterday!!

[NeverSure]

>>The Department of Foreign Trade would officially announce the auction result at a later date after receiving the approval from the National Rice Policy Committee which is expected to meet after the New Year’s holiday.<<

They are up to their eyeballs in rice, manage to sell some of it, and still have to wait for NRPC to meet some time after the New Years holiday, to approve the sale??

Ever heard of: ACTION??

A video conference and the sale could have been approved yesterday!!

They all have the tin cans but their strings aren't long enough.

[billd766]

Wonder how much loss was made on the sale,guess

we will never know it will be a state secret.only a few

more million tons to go.

regards Worgeordie

You must be thinking of the former PTP government who NEVER gave any details at all to the public.

[surangw]

get the money before the smell the rice

[whybother]

Only 16,800,000 tons to go.

[tomacht8]

Around 17.000.000 (17 million) tons is stock.

sold 200.000 tons.

is 1,18%.

hurray.

98,82% still to go.

storage costs: 2 Billion Bahts per month.
I do not like to extrapolate that.

Edited December 23, 2014 by tomacht8

[DeepInTheForest]

I would like to know who bought the rice, so I can avoid buying it when it has been repacked. But I guess it will be better eating Vietnamese rice for a couple of years just to be safe.

The Vietnamese government will welcome your patronage. Vietnam is having problems unloading its rice in the lucrative government-to-government (G2G) deals that form a big part of the market. China, a big customer in previous years, has supposedly agreed to buy 2 million tons from Thailand and a million from Burma in 2015. Vietnam's usual customers in these deals-- China, Malaysia, Indonesia, and the Philippines-- have so far not signed contracts for next year. This may in part be because of the glut of rice on the market, due in part to Thailand's stockpiles and India's increased exports.

Spare a thought for the Vietnamese rice farmer. His plot averages half a hectare. Vietnamese rice strains are seen as being of low or middling quality, as opposed to, yes, Thailand's. Production costs-- fuel, fertilizer, pesticides-- are rising. The government's rice officials are notoriously corrupt, skimming profits. (Corruption in the rice sector? Knock me over with a feather!!) In An Giang province in the delta, a farmer's income averages $100 per month from rice, compared with five times that for coffee growers in the Central Highlands. That is, for the moment, at least-- world commodity markets are extremely fickle. Vietnam itself destabilized world coffee prices when they entered the market with a huge increase in coffee cultivation. This also was an environmental and social disaster, as deforestation and displacement removed the hill people from their traditional lands. Maddeningly, Vietnamese rice exports face a hurdle because of their diversity-- at least ten different strains are grown for export. Buyers apparently favor buying huge quantities of a single variety, which is perhaps good from a marketing standpoint but horrific in terms of biodiversity.

Indonesia and the Philippines are increasing their production, meaning a possible decrease in markets. In Vietnam, rice is providing a smaller percentage of dietary intake, as rising prosperity means people turn to meat and wheat. The Mekong Delta is under environmental stress, since the dikes that control floods also eliminate the annual floods that brought nutrients to the soil. Farm income is propped up, as elsewhere in the world, by young people who go to the cities for contruction or hotel jobs. And the damming of the Mekong will be another supreme challenge to farming in the delta.

Finally, there are the ever-present rats, which collar about 20% of the rice crop. So yes, patronize the Vietnamese rice industry. But think too, about the world trading system which, for all its advantages, is often volatile and has considerable downsides.

http://www.economist.com/news/asia/21594338-vietnams-farmers-are-growing-crop-no-longer-pays-its-way-against-grain

http://www.channelnewsasia.com/news/asiapacific/vietnam-rat-king-helps/1539036.html

http://oryza.com/huge-demand-vietnam%E2%80%99s-g2g-markets-may-not-translate-sales-2015

http://www.ibtimes.com/vietnamese-rice-farmers-battle-vietnam-rat-infestation-snakes-cats-become-more-1763419

http://www.irinnews.org/report/94552/vietnam-from-rice-to-shrimps-and-ginger-adapting-to-saltwater-intrusion

Edited December 23, 2014 by DeepInTheForest

[djjamie]

I award this to the PTP. They are the muppets!

[tonbridgebrit]

I would like to know who bought the rice, so I can avoid buying it when it has been repacked. But I guess it will be better eating Vietnamese rice for a couple of years just to be safe.

The Vietnamese government will welcome your patronage. Vietnam is having problems unloading its rice in the lucrative government-to-government (G2G) deals that form a big part of the market. China, a big customer in previous years, has supposedly agreed to buy 2 million tons from Thailand and a million from Burma in 2015. Vietnam's usual customers in these deals-- China, Malaysia, Indonesia, and the Philippines-- have so far not signed contracts for next year. This may in part be because of the glut of rice on the market, due in part to Thailand's stockpiles and India's increased exports.

Spare a thought for the Vietnamese rice farmer. His plot averages half a hectare. Vietnamese rice strains are seen as being of low or middling quality, as opposed to, yes, Thailand's. Production costs-- fuel, fertilizer, pesticides-- are rising. The government's rice officials are notoriously corrupt, skimming profits. (Corruption in the rice sector? Knock me over with a feather!!) In An Giang province in the delta, a farmer's income averages $100 per month from rice, compared with five times that for coffee growers in the Central Highlands. That is, for the moment, at least-- world commodity markets are extremely fickle. Vietnam itself destabilized world coffee prices when they entered the market with a huge increase in coffee cultivation. This also was an environmental and social disaster, as deforestation and displacement removed the hill people from their traditional lands. Maddeningly, Vietnamese rice exports face a hurdle because of their diversity-- at least ten different strains are grown for export. Buyers apparently favor buying huge quantities of a single variety, which is perhaps good from a marketing standpoint but horrific in terms of biodiversity.

Indonesia and the Philippines are increasing their production, meaning a possible decrease in markets. In Vietnam, rice is providing a smaller percentage of dietary intake, as rising prosperity means people turn to meat and wheat. The Mekong Delta is under environmental stress, since the dikes that control floods also eliminate the annual floods that brought nutrients to the soil. Farm income is propped up, as elsewhere in the world, by young people who go to the cities for contruction or hotel jobs. And the damming of the Mekong will be another supreme challenge to farming in the delta.

Finally, there are the ever-present rats, which collar about 20% of the rice crop. So yes, patronize the Vietnamese rice industry. But think too, about the world trading system which, for all its advantages, is often volatile and has considerable downsides.

http://www.economist.com/news/asia/21594338-vietnams-farmers-are-growing-crop-no-longer-pays-its-way-against-grain

http://www.channelnewsasia.com/news/asiapacific/vietnam-rat-king-helps/1539036.html

http://oryza.com/huge-demand-vietnam%E2%80%99s-g2g-markets-may-not-translate-sales-2015

http://www.ibtimes.com/vietnamese-rice-farmers-battle-vietnam-rat-infestation-snakes-cats-become-more-1763419

http://www.irinnews.org/report/94552/vietnam-from-rice-to-shrimps-and-ginger-adapting-to-saltwater-intrusion

And here's us on Thai Visa, thinking that only Thai rice farmers have a problem !!

[Thai at Heart]

I would like to know who bought the rice, so I can avoid buying it when it has been repacked. But I guess it will be better eating Vietnamese rice for a couple of years just to be safe.

The Vietnamese government will welcome your patronage. Vietnam is having problems unloading its rice in the lucrative government-to-government (G2G) deals that form a big part of the market. China, a big customer in previous years, has supposedly agreed to buy 2 million tons from Thailand and a million from Burma in 2015. Vietnam's usual customers in these deals-- China, Malaysia, Indonesia, and the Philippines-- have so far not signed contracts for next year. This may in part be because of the glut of rice on the market, due in part to Thailand's stockpiles and India's increased exports.

Spare a thought for the Vietnamese rice farmer. His plot averages half a hectare. Vietnamese rice strains are seen as being of low or middling quality, as opposed to, yes, Thailand's. Production costs-- fuel, fertilizer, pesticides-- are rising. The government's rice officials are notoriously corrupt, skimming profits. (Corruption in the rice sector? Knock me over with a feather!!) In An Giang province in the delta, a farmer's income averages $100 per month from rice, compared with five times that for coffee growers in the Central Highlands. That is, for the moment, at least-- world commodity markets are extremely fickle. Vietnam itself destabilized world coffee prices when they entered the market with a huge increase in coffee cultivation. This also was an environmental and social disaster, as deforestation and displacement removed the hill people from their traditional lands. Maddeningly, Vietnamese rice exports face a hurdle because of their diversity-- at least ten different strains are grown for export. Buyers apparently favor buying huge quantities of a single variety, which is perhaps good from a marketing standpoint but horrific in terms of biodiversity.

Indonesia and the Philippines are increasing their production, meaning a possible decrease in markets. In Vietnam, rice is providing a smaller percentage of dietary intake, as rising prosperity means people turn to meat and wheat. The Mekong Delta is under environmental stress, since the dikes that control floods also eliminate the annual floods that brought nutrients to the soil. Farm income is propped up, as elsewhere in the world, by young people who go to the cities for contruction or hotel jobs. And the damming of the Mekong will be another supreme challenge to farming in the delta.

Finally, there are the ever-present rats, which collar about 20% of the rice crop. So yes, patronize the Vietnamese rice industry. But think too, about the world trading system which, for all its advantages, is often volatile and has considerable downsides.

http://www.economist.com/news/asia/21594338-vietnams-farmers-are-growing-crop-no-longer-pays-its-way-against-grain

http://www.channelnewsasia.com/news/asiapacific/vietnam-rat-king-helps/1539036.html

http://oryza.com/huge-demand-vietnam%E2%80%99s-g2g-markets-may-not-translate-sales-2015

http://www.ibtimes.com/vietnamese-rice-farmers-battle-vietnam-rat-infestation-snakes-cats-become-more-1763419

http://www.irinnews.org/report/94552/vietnam-from-rice-to-shrimps-and-ginger-adapting-to-saltwater-intrusion

Reality is, much of the Thai production is completely unprofitable to grow, and by persisting with it, it pushes pain onto neighbouring countries and domestic tax payers.

Whilst feeling sorry for a vietnamese farmer, I feel very sorry for many Thai rice farmers too.

[Robby nz]

>>The Department of Foreign Trade would officially announce the auction result at a later date after receiving the approval from the National Rice Policy Committee which is expected to meet after the New Year’s holiday.<<

They are up to their eyeballs in rice, manage to sell some of it, and still have to wait for NRPC to meet some time after the New Years holiday, to approve the sale??

Ever heard of: ACTION??

A video conference and the sale could have been approved yesterday!!

Your backsliding there JOC, remember think positive.

Over half of the offering at auction was sold at expected price or above with 21 buyers all wanting a share.

That's good news as it shows that many want the rice and that they are willing to pay reasonable prices for it.

That there were 34 bidders shows that even more want it but some wanted to pay less, they will now be given the chance to revise their bids on the remaining 150k tons and if they really want their share, which at least some will as they must have had customers in mind to have bid in the first place, then there is a good chance that a fair bit more of the offering can be sold.

That there is the usual red tape involved before some official gets there chance to make an announcement doesn't change things.

[rickirs]

Congradulations Thailand

# 1 world seller in rice volume, but also # 1 in highest cost to produce rice with the lowest profit margin in the ASEAN countries.