Release of in-stock Thai rice will not affect market price, says Minister

[webfact]

Release of in-stock rice will not affect market price, says Minister

BANGKOK, 19 January 2015 (NNT) – The Minister of Commerce has assured releasing the first batch of the government’s in-stock rice in late January will not affect the price of rice due to the market’s high demand.

According to the Minister of Commerce Gen. Chatchai Sarikulya, the government has been managing the rice auctioning with fair principles. All procedures are transparent and there have not been reports of misconduct.

He mentioned that the first whole-stock and by pile rice auction, approximately at 1 million tonnes, will take place by the end of January. This selling will not have any effects to the regular price of rice in the market even though the amount of rice released is quite large.

He has said that the demand in the market is still high, and the timing in each round of rice release has been designed to meet the market’s demand and cause minimal effects to the current pricing.

Meanwhile, the Director-General of the Department of Foreign Trade Duangporn Rodphaya has revealed that the department has been preparing the Terms of Reference (TOR) for the rice auction. The TOR is expected to be announced within this week.

She has said that there are about 200 rice warehouses participating in this auction, while the department is considering the pricing margins formula and the floor price for the auction.

Price proposers who have proposed prices above the floor price will be eligible for the auction, while the rice will be sold to the proposer with the highest price. Payment in instalments will be accepted.


-- NNT 2015-01-19

[Tatsujin]

Sounds eerily familiar to what was said at the start of the previous rice scheme ...

[Fiddlesticks]

The Minister thinks that since the rice (which has been festering in government warehouses) is such poor quality that they do not expect to get more than 50 satang per ton hence the sale will have a negligible impact on the price of real rice.

[Bluespunk]

"He mentioned that the first whole-stock and by pile rice auction, approximately at 1 million tonnes, will take place by the end of January. This selling will not have any effects to the regular price of rice in the market even though the amount of rice released is quite large."

Think what you like.

Theorize if you will

However, ultimately, the market will decide, not you.

[Jonmarleesco]

If it's of the poor quality claimed, it hardly would have an impact on standard quality rice.

[asdecas]

If it's of the poor quality claimed, it hardly would have an impact on standard quality rice.

Why would you say that? If for example, an unscrupulous importer of Thai rice bought all he required at a tenth of the market price, don't you think that, multiplied many times over, would affect the market?

It's very basic market economics.

[tomacht8]

Release of in-stock Thai rice will not affect market price, says Minister

Thailand exported altogether 10.8 million tonnes of milled rice worth US$ 5.37 billion last year which was regarded as the highest amount in recent history, said Commerce Minister General Chatchai Sarigalaya on Monday.

The 2014 rice export represented an increase of 64 percent in term of quantity and 22 percent in term of value compared to 6.6 million tonnes worth US$ 4.42 billion export in 2013.

x ton $ Year Baht ($*30)

10.800.000 5.370.000.000 2014 161.100.000.000

6.600.000 4.420.000.000 2013 132.600.000.000

2014 dollar/ton = 497,22

2013 dollar/ton = 669,69

price loss per ton = 172,47 dollar/ton -5.174

in % = -25,75%

loss based on the amount =

4.200.000 * -172,47 = -724.393.939$ -21.731.818.182 Baht

Sorry to say, but for the year 2013 to 2014 there was a sale price decline: -25,75%

[surangw]

cheep at twice the price when its free