PM Prayut: Substandard rice mills will be closed down

[webfact]

PM: Substandard rice mills will be closed down



BANGKOK, 21 May 2015 (NNT) - Prime Minister Prayut Chan-o-cha has instructed the Ministry of Commerce to inspect rice mills nationwide. Substandard rice mills will be shut down immediately and replaced by cooperatives.

Prime Minister Prayut on Wednesday presided over the Thailand Rice Convention 2015 at Impact Muang Thong Thani. The premier said the Ministry of Commerce needed to check rice mills to see if they had the quality as claimed.

A rice mill which did not meet the quality standards had to be closed down since the government spent a lot every year hiring rice mills to manage its rice stock, said the premier.

As for the Thailand Rice Convention 2015, the PM said he believed it would help promote Thai rice in the international sphere.

Held from 19-21 May 2015, the event showcases Thailand’s potential as a leading rice producer and exporter of the world. More than 700 rice traders from 50 countries are expected to participate in this biennial fair held since 2001.


-- NNT 2015-05-21

[trogers]

There goes the meeting in a hotel downtown...

[rametindallas]

replaced by cooperatives.

Always, before, the rice mills had a monopoly on the rice growers within their territory. It was not allowed for growers to offer their rice to another miller in the hope of a better deal. This kept the farmers down and the rice millers, having no competition, rich because they could charge what they wanted.

I consider the formation of cooperative to be a major reform of rice industry; one that benefits the growers. Three cheers to the PM. If he keeps doing reforms that are beneficial to regular people, he will become very popular, indeed. This must really irk the Thaksin supporters. His government is already subsidizing new equipment so farmers can increase their yields, he has kept prices up and losses down by halting the second growing season which has the side benefit of allowing the government to get rid of some of their stored stocks without being in competition with the harvest of that second crop. The PM is very smart or at least is listening to some very smart, unselfish advisors. I can see why the polls show him and the NCPO to still be popular. http://www.thaivisa.com/forum/topic/826847-nida-poll-finds-thais-still-happy-with-ncpo/

[Thai at Heart]

replaced by cooperatives.

Always, before, the rice mills had a monopoly on the rice growers within their territory. It was not allowed for growers to offer their rice to another miller in the hope of a better deal. This kept the farmers down and the rice millers, having no competition, rich because they could charge what they wanted.

I consider the formation of cooperative to be a major reform of rice industry; one that benefits the growers. Three cheers to the PM. If he keeps doing reforms that are beneficial to regular people, he will become very popular, indeed. This must really irk the Thaksin supporters. His government is already subsidizing new equipment so farmers can increase their yields, he has kept prices up and losses down by halting the second growing season which has the side benefit of allowing the government to get rid of some of their stored stocks without being in competition with the harvest of that second crop. The PM is very smart or at least is listening to some very smart, unselfish advisors. I can see why the polls show him and the NCPO to still be popular. http://www.thaivisa.com/forum/topic/826847-nida-poll-finds-thais-still-happy-with-ncpo/

Well, this set up is a very very long standing system that will need an awful lot of effort to break it down. The local control on purchase is a complete bastardisation of the market system. Farmers are basically at the whim of the local purchaser.

The problems are there in plain sight for all to see, so if he can undo them, great result. Thing is, the same system exists in basically every agriproduct in the country. A lack of buyers and competition. Which can be solved by allowing foreign companies rights to purchase direct from farmers. But then that would mean dismantling the basic monopoly being built up by CP in many markets. And no one messes with CP.

So expect, some headlines and some progress, and the General to get a visit from Cp to tell him to mind his own business.

[h90]

replaced by cooperatives.

Always, before, the rice mills had a monopoly on the rice growers within their territory. It was not allowed for growers to offer their rice to another miller in the hope of a better deal. This kept the farmers down and the rice millers, having no competition, rich because they could charge what they wanted.

I consider the formation of cooperative to be a major reform of rice industry; one that benefits the growers. Three cheers to the PM. If he keeps doing reforms that are beneficial to regular people, he will become very popular, indeed. This must really irk the Thaksin supporters. His government is already subsidizing new equipment so farmers can increase their yields, he has kept prices up and losses down by halting the second growing season which has the side benefit of allowing the government to get rid of some of their stored stocks without being in competition with the harvest of that second crop. The PM is very smart or at least is listening to some very smart, unselfish advisors. I can see why the polls show him and the NCPO to still be popular. http://www.thaivisa.com/forum/topic/826847-nida-poll-finds-thais-still-happy-with-ncpo/

But the resistance will be big, also there will be a lot propaganda against, trying to pay the farmer even less and tell them it is because of Prayuts regulations and only Thaksin can help....Be sure they'll try every dirty trick

[smutcakes]

In simple language can someone explain exactly what a cooperative is, and what exactly they are doing here?

[rubl]

In simple language can someone explain exactly what a cooperative is, and what exactly they are doing here?

This (very) old article should help you on your way

"Village collective rice mills provide an added opportunity for rice farmers to control prices, and realize profits from their efforts. Members, who are also the mill owners, determine their own policies and receive milling services at prices lower than those charged by most private rice mills. With initial support from private development organizations, these cooperative mills have spread quickly since 1987, and in 1991, the government's village jobs creation program included rice mills as an alternati ve under its policies."

http://www.chebucto.ns.ca/Environment/SCN/CommLink/VCI49TG.html

[Srikcir]

replaced by cooperatives.

Always, before, the rice mills had a monopoly on the rice growers within their territory. It was not allowed for growers to offer their rice to another miller in the hope of a better deal. This kept the farmers down and the rice millers, having no competition, rich because they could charge what they wanted.

I consider the formation of cooperative to be a major reform of rice industry; one that benefits the growers. Three cheers to the PM. If he keeps doing reforms that are beneficial to regular people, he will become very popular, indeed. This must really irk the Thaksin supporters. His government is already subsidizing new equipment so farmers can increase their yields, he has kept prices up and losses down by halting the second growing season which has the side benefit of allowing the government to get rid of some of their stored stocks without being in competition with the harvest of that second crop. The PM is very smart or at least is listening to some very smart, unselfish advisors. I can see why the polls show him and the NCPO to still be popular. http://www.thaivisa.com/forum/topic/826847-nida-poll-finds-thais-still-happy-with-ncpo/

"Substandard rice mills will be shut down immediately and replaced by cooperatives."

Prayut is not eliminating rice mills in total, only those "substandard" - whatever that means and no doubt negotiable in any case. The result may become a hodge-podge of both coops and rice mills in a region. If coops have to compete against large mills, they may not be sustainable given a lack of economy of scale.

[baboon]

... Another proclamation from the people who just intervened in order to do a quick reset and return the country to the people within the next few months or so...

[rubl]

replaced by cooperatives.

Always, before, the rice mills had a monopoly on the rice growers within their territory. It was not allowed for growers to offer their rice to another miller in the hope of a better deal. This kept the farmers down and the rice millers, having no competition, rich because they could charge what they wanted.

I consider the formation of cooperative to be a major reform of rice industry; one that benefits the growers. Three cheers to the PM. If he keeps doing reforms that are beneficial to regular people, he will become very popular, indeed. This must really irk the Thaksin supporters. His government is already subsidizing new equipment so farmers can increase their yields, he has kept prices up and losses down by halting the second growing season which has the side benefit of allowing the government to get rid of some of their stored stocks without being in competition with the harvest of that second crop. The PM is very smart or at least is listening to some very smart, unselfish advisors. I can see why the polls show him and the NCPO to still be popular. http://www.thaivisa.com/forum/topic/826847-nida-poll-finds-thais-still-happy-with-ncpo/

"Substandard rice mills will be shut down immediately and replaced by cooperatives."

Prayut is not eliminating rice mills in total, only those "substandard" - whatever that means and no doubt negotiable in any case. The result may become a hodge-podge of both coops and rice mills in a region. If coops have to compete against large mills, they may not be sustainable given a lack of economy of scale.

It almost seems you are in favour of the big rice mills which have the scale and might to squeeze the poor farmers.

BTW didn't we see a news item a few months (or more?) ago about cooperation of farmers in Buriram, surin are somewhere there, with organic rice and doing good business with Europe? It would seem that like with shrimps the E.C. has standards for quality control which it would be happy to see applied in Thailand Rice Mills as well.

[Dumbastheycome]

The issue about rice has always confused me. My wife and I grow rice on 6 rai. Until 5 years ago the land was leased to a family member for a percentage of the crop and a small amount of cash.

When we decided to grow ourselves in the first year the seed planted was from the previous crop. But this seed was of a low grade variety. When I asked why plant low quality I was told it was because thats the rice local people preferred to eat instead of the higher value Jasmine rice. So I asked what percentage ofthe crop was eaten and what percentage was sold? 20 percent eaten and 80 percent sold off .Ok, so what is the difference between the price of Jasmine and "hard" rice ? 7 Baht per kilo ! Next question..... Is it harder to grow Jasmine rice? Answer ....No. Ok So why not grow the higher value rice and sell all of it and use some of that to buy the hard rice you want to eat? The profit will be greater, no?

Looks of confusion ! But slowly comprehension !

We now produce 40 tonne of Jasmine rice. Used to sell it all but now we have a restaurant which consumes about 50 %.

But I am still confused about the whole issue. The Govt. has had many problems about stocks but most of that has been about the low quality which has little buyer interest. I have seen much comment about reducing rice growing for various reasons. But I have yet to see a recommendation to grow high quality rice where possible . Surely that would be of benefit for export.

What is pertinent to this topic is that we buy seed from a local Rice Growers Co Operative which stocks certified seed of Jasmine variety.

There is no commercial rice mill near us that I know of but there are several rice merchants who buy rice including the Rice Growers Co Op.

It would seem that all pay approximately the same per kilo depending on quality and moisture content.

And I have noticed that when buyers they see our " kau suoey" they are quite interested.

There is little or no difference in growing either type of rice that I have found. We achieve a slightly higher weight crop because I insist on using fertilizer according to what is recommended by the researched information. Most growers locally take the advice of the sellers who knock off cheap and inferior products that have a high profit margin and a poor result and and increasing soil residue.

But I remain baffled. Why is there much talk about reducing rice production and so little ( anything? ) about growing high quality rice suitable for export? Especially when if I understand that a previous big issue was the absence in Govt. stocks of high quality rice that farmers were awaiting payment for but was nowhere to be found!

.

[Basil B]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

[Dumbastheycome]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

lol. Yes, restaurant is doing great. But.... the 40 tonnes is the raw product.The loss in processing to a table product is quite depressing. Count on at least 20/30% in processing. Then about another 5% in eliminating broken seed and weed seed to have a consistant product We use between 12 and 20 kgs a day on average.( and at least 3 of that goes in wastage ! So much for the deprived and hungry ! )

But in light ofthe topic.... Premium raw rice used to fetch around 15 bht per kilo. Not sure what it is now. Yet polished rice can be purchased for the same money. Ok...by product can account for some of that. But it would appear that the rice subsidy goes through the rice buyers/processors. The rice farmer cannot alter the assessed price he/she recieves.( rice variety, moisture content, age etc.) Butperhaps Prayuts comment refers not so much as to "substandard" rice mills but to possibly corrupt practices involving false claims about rice purchased in interest of claiming subsidies. It still seems unresolved as to where all the premium rice from Govt. storage stocks went. Maybe it never was?

[ratcatcher]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

lol. Yes, restaurant is doing great. But.... the 40 tonnes is the raw product.The loss in processing to a table product is quite depressing. Count on at least 20/30% in processing. Then about another 5% in eliminating broken seed and weed seed to have a consistant product We use between 12 and 20 kgs a day on average.( and at least 3 of that goes in wastage ! So much for the deprived and hungry ! )

But in light ofthe topic.... Premium raw rice used to fetch around 15 bht per kilo. Not sure what it is now. Yet polished rice can be purchased for the same money. Ok...by product can account for some of that. But it would appear that the rice subsidy goes through the rice buyers/processors. The rice farmer cannot alter the assessed price he/she recieves.( rice variety, moisture content, age etc.) Butperhaps Prayuts comment refers not so much as to "substandard" rice mills but to possibly corrupt practices involving false claims about rice purchased in interest of claiming subsidies. It still seems unresolved as to where all the premium rice from Govt. storage stocks went. Maybe it never was?

You're not as dumb as you claim, are you. Come on be honest.

[Dumbastheycome]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

lol. Yes, restaurant is doing great. But.... the 40 tonnes is the raw product.The loss in processing to a table product is quite depressing. Count on at least 20/30% in processing. Then about another 5% in eliminating broken seed and weed seed to have a consistant product We use between 12 and 20 kgs a day on average.( and at least 3 of that goes in wastage ! So much for the deprived and hungry ! )

But in light ofthe topic.... Premium raw rice used to fetch around 15 bht per kilo. Not sure what it is now. Yet polished rice can be purchased for the same money. Ok...by product can account for some of that. But it would appear that the rice subsidy goes through the rice buyers/processors. The rice farmer cannot alter the assessed price he/she recieves.( rice variety, moisture content, age etc.) Butperhaps Prayuts comment refers not so much as to "substandard" rice mills but to possibly corrupt practices involving false claims about rice purchased in interest of claiming subsidies. It still seems unresolved as to where all the premium rice from Govt. storage stocks went. Maybe it never was?

You're not as dumb as you claim, are you. Come on be honest.

I,m speechless ! What else can I say ......

[Thai at Heart]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

lol. Yes, restaurant is doing great. But.... the 40 tonnes is the raw product.The loss in processing to a table product is quite depressing. Count on at least 20/30% in processing. Then about another 5% in eliminating broken seed and weed seed to have a consistant product We use between 12 and 20 kgs a day on average.( and at least 3 of that goes in wastage ! So much for the deprived and hungry ! )

But in light ofthe topic.... Premium raw rice used to fetch around 15 bht per kilo. Not sure what it is now. Yet polished rice can be purchased for the same money. Ok...by product can account for some of that. But it would appear that the rice subsidy goes through the rice buyers/processors. The rice farmer cannot alter the assessed price he/she recieves.( rice variety, moisture content, age etc.) Butperhaps Prayuts comment refers not so much as to "substandard" rice mills but to possibly corrupt practices involving false claims about rice purchased in interest of claiming subsidies. It still seems unresolved as to where all the premium rice from Govt. storage stocks went. Maybe it never was?

All the different varieties have different prices, so when they say quality, this is not the same as what is optimal output for a given variety. Some are more water hungry than others, some mature faster than others, some yield more or less than others, and then some are in more demand than others. Yes, Hom Mali is the highest priced, but as far as I know, it doesn't yield as much per rai as other more water hungry varieties produced in the irrigated plains in the centre of Thailand when grown to the highest quality.

So there is the best quality for each given type and they all have a given maximum market price. Not everywhere can produce hom mali, but when it is produced correctly, it will get the best price for its given quality. All the prices can be seen on http://www.thairiceexporters.or.th/price_eng.html

9 different prices across 6 different seed types. You are right, there is little competition among the buyers, because that is exactly the way Thai Chinese middle men like their business. With the illusion of competition......

[Dumbastheycome]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

lol. Yes, restaurant is doing great. But.... the 40 tonnes is the raw product.The loss in processing to a table product is quite depressing. Count on at least 20/30% in processing. Then about another 5% in eliminating broken seed and weed seed to have a consistant product We use between 12 and 20 kgs a day on average.( and at least 3 of that goes in wastage ! So much for the deprived and hungry ! )

But in light ofthe topic.... Premium raw rice used to fetch around 15 bht per kilo. Not sure what it is now. Yet polished rice can be purchased for the same money. Ok...by product can account for some of that. But it would appear that the rice subsidy goes through the rice buyers/processors. The rice farmer cannot alter the assessed price he/she recieves.( rice variety, moisture content, age etc.) Butperhaps Prayuts comment refers not so much as to "substandard" rice mills but to possibly corrupt practices involving false claims about rice purchased in interest of claiming subsidies. It still seems unresolved as to where all the premium rice from Govt. storage stocks went. Maybe it never was?

All the different varieties have different prices, so when they say quality, this is not the same as what is optimal output for a given variety. Some are more water hungry than others, some mature faster than others, some yield more or less than others, and then some are in more demand than others. Yes, Hom Mali is the highest priced, but as far as I know, it doesn't yield as much per rai as other more water hungry varieties produced in the irrigated plains in the centre of Thailand when grown to the highest quality.

So there is the best quality for each given type and they all have a given maximum market price. Not everywhere can produce hom mali, but when it is produced correctly, it will get the best price for its given quality. All the prices can be seen on http://www.thairiceexporters.or.th/price_eng.html

9 different prices across 6 different seed types. You are right, there is little competition among the buyers, because that is exactly the way Thai Chinese middle men like their business. With the illusion of competition......

We plant Kau Hom Mali 105....... Using minimal but high quality fertilizer we usually produce more per rai than neighbours who sow from previous season seed and use the cheapest fertilizer ( but with probably the highest profit margin) recommended by the local shop ! The message in that is mostly ignored. (:

[Thai at Heart]

over 50Kg of rice a day, your restaurant must be doing some cracking business...

lol. Yes, restaurant is doing great. But.... the 40 tonnes is the raw product.The loss in processing to a table product is quite depressing. Count on at least 20/30% in processing. Then about another 5% in eliminating broken seed and weed seed to have a consistant product We use between 12 and 20 kgs a day on average.( and at least 3 of that goes in wastage ! So much for the deprived and hungry ! )

But in light ofthe topic.... Premium raw rice used to fetch around 15 bht per kilo. Not sure what it is now. Yet polished rice can be purchased for the same money. Ok...by product can account for some of that. But it would appear that the rice subsidy goes through the rice buyers/processors. The rice farmer cannot alter the assessed price he/she recieves.( rice variety, moisture content, age etc.) Butperhaps Prayuts comment refers not so much as to "substandard" rice mills but to possibly corrupt practices involving false claims about rice purchased in interest of claiming subsidies. It still seems unresolved as to where all the premium rice from Govt. storage stocks went. Maybe it never was?

All the different varieties have different prices, so when they say quality, this is not the same as what is optimal output for a given variety. Some are more water hungry than others, some mature faster than others, some yield more or less than others, and then some are in more demand than others. Yes, Hom Mali is the highest priced, but as far as I know, it doesn't yield as much per rai as other more water hungry varieties produced in the irrigated plains in the centre of Thailand when grown to the highest quality.

So there is the best quality for each given type and they all have a given maximum market price. Not everywhere can produce hom mali, but when it is produced correctly, it will get the best price for its given quality. All the prices can be seen on http://www.thairiceexporters.or.th/price_eng.html

9 different prices across 6 different seed types. You are right, there is little competition among the buyers, because that is exactly the way Thai Chinese middle men like their business. With the illusion of competition......

We plant Kau Hom Mali 105....... Using minimal but high quality fertilizer we usually produce more per rai than neighbours who sow from previous season seed and use the cheapest fertilizer ( but with probably the highest profit margin) recommended by the local shop ! The message in that is mostly ignored. (:

Well I hope u get a better price

[kevvy]

He is still doing a great job .Well done, PM

Edited June 17, 2015 by kevvy