999,000 tonnes of rice are put on sale by auction on Jan 29

[webfact]

999,000 tonnes of rice are put on sale by auction on Jan 29



BANGKOK: -- The Foreign Trade Department will open an auction on January 29 for 999,000 tonnes of 54% white rice and Hom Mali fragrant rice worth at least 1.16 billion baht.

The rice to be auctioned off include 850,000 tonnes of white rice and 150,000 tonnes of Hom Mali rice. The grains are kept at 168 warehouses of the Public Warehouse Organisation and the Marketing Organisation for Farmers in 36 provinces.

Potential bidders who are interested can attend a briefing about the terms of condition of the bidding which has been changed somewhat. They will be allowed to examine the quality of rice stored at each warehouse and the floor price for rice at each warehouse will be announced.

Bidders will have to buy the entire lot of rice at each warehouse and bids which are lower than the floor prices announced will be rejected.

Source: http://englishnews.thaipbs.or.th/999000-tonnes-rice-put-sale-auction-jan-29


-- Thai PBS 2015-01-23

[Ricardo]

"Bidders will have to buy the entire lot of rice at each warehouse and bids which are lower than the floor prices announced will be rejected."

The Thai Law of Supply & Demand ... we will Demand a minimum-price, and refuse to Supply, if the market-price is lower, than we want it to be ! Yay !

[jalansanitwong]

I went to a rice wholesaler this week to buy a sack. Alot of the cheaper rice grades look dirty. Probably been sitting around in warehouses for a number of years.

Indians will buy the cheapest rice and dump it in their restaurants.

Is the government going to tell us how much theyre selling the rice for per tonne? 7000 b maybe

[rubl]

With this lot expected to bring 1.16 billion at least, extrapolating I get the whole lot of 17.whatever million tonnes in store valued at 20 billion Baht. Very rough guestimate, probably wrong, but even double and it's still not helping much to fill in the 700 billion Baht hole at BAAC

[binjalin]

subsidy for farmers is common (i.e. buying at higher prices) so I see it as a 'budget offset' not a 'loss' but I try not to be too pedantic as the sun is shining and it's a lovely day and politics will be politics (a nasty business where truth is the first casualty)

[Songhua]

They were going to sell one million tonnes ... but the other thousand was missing.

[rubl]

subsidy for farmers is common (i.e. buying at higher prices) so I see it as a 'budget offset' not a 'loss' but I try not to be too pedantic as the sun is shining and it's a lovely day and politics will be politics (a nasty business where truth is the first casualty)

The RPPS was not a subsidy which had a reserved budget within the National Budget and there being part of the deficit. NO, Ms. Yingluck c.s. positioned their RPPS as 'self-financing' scheme and still managed to make it lose 700 billion Baht.

You're right, truth is the first casualty. Don't fear though, you won't be charged, just displayed as the .... you are.

[binjalin]

subsidy for farmers is common (i.e. buying at higher prices) so I see it as a 'budget offset' not a 'loss' but I try not to be too pedantic as the sun is shining and it's a lovely day and politics will be politics (a nasty business where truth is the first casualty)

The RPPS was not a subsidy which had a reserved budget within the National Budget and there being part of the deficit. NO, Ms. Yingluck c.s. positioned their RPPS as 'self-financing' scheme and still managed to make it lose 700 billion Baht.

You're right, truth is the first casualty. Don't fear though, you won't be charged, just displayed as the .... you are.

as the.... what? is that called for?

[Sviss Geez]

I went to a rice wholesaler this week to buy a sack. Alot of the cheaper rice grades look dirty. Probably been sitting around in warehouses for a number of years.

Indians will buy the cheapest rice and dump it in their restaurants.

Is the government going to tell us how much theyre selling the rice for per tonne? 7000 b maybe

It's an auction, they sell to the highest bidder. Enter the auction if you're interested in the price and they'll tell you the reserve.

[Ulic]

All I know is I was at Costco yesterday and an 8 kg bag of house brand (Kirkland) Thai rice was $13.99 Canadian dollars

and a 5 kg bag of Indian Basmati (Kirkland) was selling for 15.99 CDN. All I thought was WOW the price of Thai rice

has fallen unbelievably. If only the baht would do the same.

[worgeordie]

999,000 tonnes is that a lucky number or something.

regards worgeordie

[rickirs]

subsidy for farmers is common (i.e. buying at higher prices) so I see it as a 'budget offset' not a 'loss' but I try not to be too pedantic as the sun is shining and it's a lovely day and politics will be politics (a nasty business where truth is the first casualty)

The RPPS was not a subsidy which had a reserved budget within the National Budget and there being part of the deficit. NO, Ms. Yingluck c.s. positioned their RPPS as 'self-financing' scheme and still managed to make it lose 700 billion Baht.

You're right, truth is the first casualty. Don't fear though, you won't be charged, just displayed as the .... you are.

Yingluck did not "lose" Bt700 billion in the RPPS.

The NCPO did.

The Yingluck administration had intended to payout the pledged price to farmers through sales revenues over time. When it had only sold about 20% of the inventory (which included pledged rice inventory from the Abhisit administration) in 2013, the government was under pressure from farmers, Democrats, and the PDRC to immediately pay the full amount due to the farmers.

The only way for the Yingluck administration to do that was to borrow the funds from issuance of treasury bonds and from the Government Bank loans (aka “debt”). However, the PDRC and EC prevented those options. And Yingluck was unable to make any further payments; thus, unable to incur further debt.

After the military coup, the NCPO having control of the government with no opposition, did unilaterally borrow the remaining 80% from issuance of treasury bonds (aka “debt”) in order to pay the farmers. The NCPO could have refused to make the payout with no further impact on the treasury. There was no obligation for the new government to pay more than what the rice was worth in the marketplace.

Under the 2007 Constitution, the Yingluck administration as a caretaker” government could incur new significant debt without permission of the EC. This article allows a new government to be unburdened by last minute borrowings of the old government that might serve as a financial “poison pill.” The Junta had no such qualms about damaging the economic ability of any successor government. And by paying off the farmers the Junta could point the blame for the cost (but not the benefit) at Yingluck.

Gen. Payuth should have been tried for impeachment by the NLA, at least as a co-defendant. Then we'd see just how fair the NLA can be.

[rubl]

subsidy for farmers is common (i.e. buying at higher prices) so I see it as a 'budget offset' not a 'loss' but I try not to be too pedantic as the sun is shining and it's a lovely day and politics will be politics (a nasty business where truth is the first casualty)

The RPPS was not a subsidy which had a reserved budget within the National Budget and there being part of the deficit. NO, Ms. Yingluck c.s. positioned their RPPS as 'self-financing' scheme and still managed to make it lose 700 billion Baht.

You're right, truth is the first casualty. Don't fear though, you won't be charged, just displayed as the .... you are.

Yingluck did not "lose" Bt700 billion in the RPPS.

The NCPO did.

The Yingluck administration had intended to payout the pledged price to farmers through sales revenues over time. When it had only sold about 20% of the inventory (which included pledged rice inventory from the Abhisit administration) in 2013, the government was under pressure from farmers, Democrats, and the PDRC to immediately pay the full amount due to the farmers.

The only way for the Yingluck administration to do that was to borrow the funds from issuance of treasury bonds and from the Government Bank loans (aka “debt”). However, the PDRC and EC prevented those options. And Yingluck was unable to make any further payments; thus, unable to incur further debt.

After the military coup, the NCPO having control of the government with no opposition, did unilaterally borrow the remaining 80% from issuance of treasury bonds (aka “debt”) in order to pay the farmers. The NCPO could have refused to make the payout with no further impact on the treasury. There was no obligation for the new government to pay more than what the rice was worth in the marketplace.

Under the 2007 Constitution, the Yingluck administration as a caretaker” government could incur new significant debt without permission of the EC. This article allows a new government to be unburdened by last minute borrowings of the old government that might serve as a financial “poison pill.” The Junta had no such qualms about damaging the economic ability of any successor government. And by paying off the farmers the Junta could point the blame for the cost (but not the benefit) at Yingluck.

Gen. Payuth should have been tried for impeachment by the NLA, at least as a co-defendant. Then we'd see just how fair the NLA can be.

Delightful as always.

I'm sure the farmers would agree with you that the NCPO shouldn't have paid them, or at the very least paid less than promised on the receipts those farmers had.

2013-09-25

"Prime Minister Yingluck Shinawatra has said the government was not considering further loans because it would have enough money from selling rice from its stocks to fund the scheme.

The cabinet has said it would spend no more than 270 billion baht for the scheme in the year from October 2013 to September 2014.

Early this month, Commerce Minister Niwatthamrong Boonsongphaisan said, "Since the cabinet has approved the budget of 270 billion baht for the scheme, it is the duty of the Finance Ministry to figure out how to get the money."

The BAAC source, who declined to be identified because of the sensitivity of the issue, said, "The Finance Ministry will need to guarantee another loan (from the BAAC) by the end of this month.""

http://www.reuters.com/article/2013/09/25/us-thailand-rice-idUSBRE98O06Q20130925

[marcusd]

All I see is the farmers will again get shafted with prices below costs