Thailand won 200,000-tonne G2G rice sale deal with the Philippines

[webfact]

Thailand won 200,000-tonne G2G rice sale deal with the Philippines

BANGKOK, 4 March 2015 (NNT) - Thailand won a government-to-government rice bidding contest to sell 200,000 tones of rice to the Philippines, one of the biggest rice buyers in the world, Commerce Minister Gen Chatchai Sarikulya revealed.

The Philippines called the auction to buy a total of 500,000 tonnes of new rice, with Thailand winning to deliver 200,000 tonnes and Vietnam to deal with the rest. Half of the Thai rice to be delivered will be 15% broken white rice, and the other half will be 25% broken white rice.

Gen Chatchai said the rice deal would benefit Thailand’s rice production cycle as Manila has set the delivery date in March and April, allowing Thailand to release a great amount of rice in a short period. This is expected to help accelerate the release of new rice which is to come out in late-March.

-- NNT 2015-03-04

[Mango Bob]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

[Wilsonandson]

They didn't win, they came second. Vietnam won if you do the math.

[Strangebrew]

What deal nothing wasn't even mentioned about any rice deal here in the Philippines.

[Robby nz]

Good that Thailand is now getting back into markets that it lost through the retention of rice during the pledging scheme and that these markets are now having the confidence in the Thai product that was eroded when poor quality rice was delivered by the previous administration.

The Philippines as a major buyer will be watching closely to ensure it gets what it wants and given that the rice they are now getting is new seasons they will get good quality.

The price will also be in line with world markets and the best that can be obtained at this time, if they had been willing to sell cheap then they would have won the tender for the whole 500k tons.

Lets hope that in future they are willing to take some of the stored rice for there is still the major problem of disposing of that.

[billd766]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

Now why would they have sold it at a big loss I wonder?

Ah,I remember now. The previous PTP government bought the rice at 40% more than the international market value, paid a high price for storage and transportation fees but lied when they said that they had sold rice in a G2G deal.

The current government sales are at the more realistic world market price so of course Thailand will sell at a big loss.

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[angiolo]

Now i recall that the farmers have been told not to produce a second rice harvest. What is going on ??????

[billd766]

Now i recall that the farmers have been told not to produce a second rice harvest. What is going on ??????

The main reason for that is that there is not enough water in the main reservoirs to supply the people AND a second crop of rice.

[NeilSA1]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

... as apposed to sitting on the rice ? In any event no price was mentioned.

[mikemac]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

Don't know why you continue to try and convince me you know nothing about anything you comment on.

You just post anything that is anti-junta whether it is correct or not.

If they sold the last harvested crop they may well have made money on it because the farmers were paid a poor price for it. And the farmers are blaming the previous government for that.

Why are you so sure the rice was sold at a big loss ? And if it was who do you think is responsible ? Come on, think really hard......................

[jdinasia]

They didn't win, they came second. Vietnam won if you do the math.

No. Thailand won a contract for 200k tonnes. Which is what the headline says.

[halloween]

They didn't win, they came second. Vietnam won if you do the math.

Scenario 1 - Thailand has the cheapest price, but only wants to sell 200,000 t, which reduces their stockpile in time for the next season. Win or lose?

Scenarion2 - VN has the cheapest price, Thailand sells 200,000t at a higher price, which reduces their stockpile in time for the next season. Win or lose?

Could you give us an alternative scenario where this a loser for Thailand.

[Thai at Heart]

Loooooong way to go.

[Baerboxer]

They didn't win, they came second. Vietnam won if you do the math.

No. Thailand won a contract for 200k tonnes. Which is what the headline says.

In the body of the OP it says Thailand won 200k tonnes of sales but that the auction was for a total of 500k tonnes; and that Vietnam would deal with the rest. So second place Vietnam will supply 300k tonnes.

[Baerboxer]

Loooooong way to go.

Indeed.

But better than simply continuing purchases, lying about G2G sales, allowing theft, fraud and poor inventory control; and apparently allowing movements of inventory by a trucking company to a secret destination(s).

[SOUTHERNSTAR]

Vietnam won 300 000 tons and Thailand 200 000 tons. Vietnams prices was lower than that of Thailand. The rice sold by Thailand was for 15% and 25% broken rice which normally sell at less than 5% broken and 100% rice. The price I saw was in the region of $ 415/ton and $ 425/ton (+-B13 200 and B 13 600/ton). Which harvest year the rice is from was not disclosed, thus its not possible to say if a loss was made or not. The article however did state that Thailand could face problems with future sales as the governments prices was too high.

[rubl]

More details here

http://www.oryza.com/21936/philippines-decides-import-500000-tons-rice-thailand-and-vietnam

[jdinasia]

They didn't win, they came second. Vietnam won if you do the math.

No. Thailand won a contract for 200k tonnes. Which is what the headline says.

In the body of the OP it says Thailand won 200k tonnes of sales but that the auction was for a total of 500k tonnes; and that Vietnam would deal with the rest. So second place Vietnam will supply 300k tonnes.

When you go to a casino with a friend and he wins 3000thb and you win 2000thb, did either of you lose?

[Robby nz]

More details here

http://www.oryza.com/21936/philippines-decides-import-500000-tons-rice-thailand-and-Vietnam

So according to that Rubi Thailand only bid on supplying 200,000 tons and their price offered was $441 per ton on one grade which was higher than the Max specified price of $434 per ton while the second grade was $421 per ton, giving an average price of $1 per ton below the max specified.

Vietnam also agreed to accept the same prices,

So Thailand got exactly what they bid on therefor they won the bid they put in.

As to whether this is stockpile rice or not :

Gen Chatchai said the rice deal would benefit Thailand’s rice production cycle as Manila has set the delivery date in March and April, allowing Thailand to release a great amount of rice in a short period. This is expected to help accelerate the release of new rice which is to come out in late-March.

That last sentence would indicate that it is new seasons rice which they have sold, although it doesn't definitely say that.

But its all a fake according to a previous poster for PP didn't tell them personally.

[Srikcir]

No sales price announced involving 200,000 tons of rice - Why?

On 2015-01-29 the government auctioned rice from its warehouses involving 990,000 tons of rice, no sales data released - why?

On 2014-12-23 a total of 246,000 tons out of the 400,000 tons of rice were sold in the 4th round of auction this year, no sales data released - why?

Maybe disclosure would create "conflict" so better to be kept a State secret.

[jdinasia]

No sales price announced involving 200,000 tons of rice - Why?

On 2015-01-29 the government auctioned rice from its warehouses involving 990,000 tons of rice, no sales data released - why?

On 2014-12-23 a total of 246,000 tons out of the 400,000 tons of rice were sold in the 4th round of auction this year, no sales data released - why?

Maybe disclosure would create "conflict" so better to be kept a State secret.

Not present in a short article doesn't equal not available at all.

See the above for information regarding this sale.

[Xircal]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

... as apposed to sitting on the rice ? In any event no price was mentioned.

Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened).

[billd766]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

... as apposed to sitting on the rice ? In any event no price was mentioned.

Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened).

Does Thailand have the availability of correct storage facilities to store 20 million tons of rice.

Certainly not in the rurals areas of Khampaeng Phet where I live it doesn't.

quote "Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened)."

So where do you store this seasons rice and how long do you store old rice for and who will pay the storage costs for years?

That was Thaksins master plan if I remember correctly.

[Thai at Heart]

More details here

http://www.oryza.com/21936/philippines-decides-import-500000-tons-rice-thailand-and-Vietnam

So according to that Rubi Thailand only bid on supplying 200,000 tons and their price offered was $441 per ton on one grade which was higher than the Max specified price of $434 per ton while the second grade was $421 per ton, giving an average price of $1 per ton below the max specified.

Vietnam also agreed to accept the same prices,

So Thailand got exactly what they bid on therefor they won the bid they put in.

As to whether this is stockpile rice or not :

Gen Chatchai said the rice deal would benefit Thailands rice production cycle as Manila has set the delivery date in March and April, allowing Thailand to release a great amount of rice in a short period. This is expected to help accelerate the release of new rice which is to come out in late-March.

That last sentence would indicate that it is new seasons rice which they have sold, although it doesn't definitely say that.

But its all a fake according to a previous poster for PP didn't tell them personally.

I have a feeling that very little of thrbold crops has moved. Its been cherry picked already and the remainder will be impossible to sell.

[Thai at Heart]

Don't know why they would want to brag about this, I am sure they sold the rice at a big loss.

... as apposed to sitting on the rice ? In any event no price was mentioned.

Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened).

Does Thailand have the availability of correct storage facilities to store 20 million tons of rice.

Certainly not in the rurals areas of Khampaeng Phet where I live it doesn't.

quote "Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened)."

So where do you store this seasons rice and how long do you store old rice for and who will pay the storage costs for years?

That was Thaksins master plan if I remember correctly.

If you consider 40c and 80% humidity ideal, good luck.

[maidee]

how much % rotten 5 year old will be mixed, bleeched first, off course

[billd766]

Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened).

Does Thailand have the availability of correct storage facilities to store 20 million tons of rice.

Certainly not in the rurals areas of Khampaeng Phet where I live it doesn't.

quote "Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened)."

So where do you store this seasons rice and how long do you store old rice for and who will pay the storage costs for years?

That was Thaksins master plan if I remember correctly.

If you consider 40c and 80% humidity ideal, good luck.

Personally I have no idea what the ideal storage conditions are as I am not a farmer or anything to do with farming. I would let the experts tell me and I suppose that you are an expert (or not).

However up here it is stored inmany warehouses which are probably not ideal but as I didn't build them either, again I leave that to the experts but I do think that if the rice is NOT properly stored it will deteriorate and the people who own those warehouses should be held personally responsible for the storage costs.

I also firmly believe that Yingluck had/has nothing to do with this side of the rice scam at all, as I am sure that those persons controlling it assured her that it was all OK.

[Thai at Heart]

Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened).

Does Thailand have the availability of correct storage facilities to store 20 million tons of rice.

Certainly not in the rurals areas of Khampaeng Phet where I live it doesn't.

quote "Rice keeps almost indefinitely if stored correctly, so it would be better to sit on it than sell for a pittance (if that's what happened)."

So where do you store this seasons rice and how long do you store old rice for and who will pay the storage costs for years?

That was Thaksins master plan if I remember correctly.

If you consider 40c and 80% humidity ideal, good luck.

Personally I have no idea what the ideal storage conditions are as I am not a farmer or anything to do with farming. I would let the experts tell me and I suppose that you are an expert (or not).

However up here it is stored inmany warehouses which are probably not ideal but as I didn't build them either, again I leave that to the experts but I do think that if the rice is NOT properly stored it will deteriorate and the people who own those warehouses should be held personally responsible for the storage costs.

I also firmly believe that Yingluck had/has nothing to do with this side of the rice scam at all, as I am sure that those persons controlling it assured her that it was all OK.

Well, I have strored an awful lot of agricultural products in Thailand over years, and no one would choose to store grain or any other food product in ambient tremperatures in Thailand.