Spreaders of Conspiracy Theories: Unmasking the Motivations Behind the Lies

[webfact]

RICE
'Rice prices to rise' amid lower supply, high demand
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The price of Thai rice is expected to climb steadily into next year, mainly because of the impact of drought on the world market as well as production in Thailand.

However, there are still some factors that could suppress the price including the world economy, the financial problems in some countries, and the oil price, as it affects the purchasing power of some rice-importing nations.

The Thai Rice Exporters Association (TREA) announced yesterday that Thailand should be able to export between 9.5 million and 10 million tonnes of rice this year, as drought has increased demand in many countries, while Thailand has plenty of rice stocks.

TREA president Charoen Laothamatas said Thailand should be able to export at least 9.5 million tonnes of rice worth not less than US$4.77 billion (Bt165 billion).

"The drought will encourage higher rice prices in the world market and domestically amid higher demand amid lower production in Thailand and many countries. In Thailand alone, rice output is expected drop by 15-20 per cent or about 2 million to 3 million tonnes from the drought," he said.

He said the price of rice had bottomed out and should increase in the future after lower production, while higher demand by many importers such as the Philippines and Indonesia.

Thailand shipped 4.5 million tonnes of rice in the first half, down by 1.1 per cent year on year. During the same period, India shipped 4.24 million tonnes, while Vietnam exported 2.42 million tonnes.

The association expects the domestic rice price to be above Bt9,000 per tonne of white paddy in the second half, up from the current level of about Bt8,500, while the export price for white rice should be above $400 a tonne, up from $390 now. According to an updated "World Markets and Trade" report released this month by the US Department of Agriculture, global rice trading is expected to decrease slightly from 43.42 million tonnes last year to 43.72 million tonnes this year. World production will drop from 478.18 million tonnes to 476.28 million tonnes, consumption will rise from 481.47 million tonnes to 484.69 million tonnes, and global ending stocks will be lowered from 107.36 million tonnes in 2014 to 98.95 million tonnes this year.

Charoen said that with more demand but less supply of rice, it was a good opportunity for Thailand to release rice from its stocks. The country holds huge stockpiles of up to 15 million tonnes of rice, and releasing it now should not drive down the price too much.

However, there are still some worrying factors that could hit the rice price. The European Union is still recovering slowly from the last financial crisis, while declining oil prices in the world market have lowered purchasing power in some rice-importing countries, mainly Nigeria but also elsewhere in Africa and the Middle East.

Chookiat Ophaswongse, honorary president of the association, said the baht's depreciation had stabilised the export price of rice. However, the domestic price of paddy should increase soon as it has already bottomed out and the drought should help drive it back up.

To promote sustainable development of the rice industry, the association urged the government to manage rice stocks with high efficiency to ensure minimum impact on the market price of the grain.

The government should accelerate negotiations with its counterparts in rice-importing countries for rice-sale contracts. It should promote Thai rice overseas, especially Hom Mali rice (jasmine rice), and stabilise the baht, as well as reduce obstacles or trade regulations and conditions on rice trading to many markets.

Source: http://www.nationmultimedia.com/business/Rice-prices-to-rise-amid-lower-supply-high-demand-30264932.html


-- The Nation 2015-07-22

[ezzra]

One day rice is rotting away by the millions of tones and can't give it away, the next, rice shortage

and price rise... what a goofy country...

[Praematura]

Or these people could buy cheaper rice from Vietnam. Maybe retrain the farmers to work in a factory since the industry is t competitive, not to mention they are clueless about how to manage the limited water supply.

[trogers]

I would be commencing rice farming next year...

[impulse]

I would be commencing rice farming next year...

And that's the problem. Price goes up, everyone jumps in, supply exceeds demand, price drops like a rock. Farmers cry in their beer.

My heart goes out to them as they are "just pawns in game of life".

[Mango Bob]

No shit Sherlock, how much research did you do to come up with this assumption. Thailand Economy team at work.

[ramrod711]

He said the price of rice had bottomed out and should increase in the future after lower production, while higher demand by many importers such as the Philippines and Indonesia.

The price of rice has bottomed out, wonder which former PM we have to blame for that.

[trogers]

I would be commencing rice farming next year...

And that's the problem. Price goes up, everyone jumps in, supply exceeds demand, price drops like a rock. Farmers cry in their beer.

My heart goes out to them as they are "just pawns in game of life".

It's economics. Or would you only plant when supply is high and demand low?

[janpharma]

Plenty of stocks rotten away...but price goes up?...Rice in Cambodja and Vietnam is still 50% cheaper...How to explain this?...Thainess maybe?

[impulse]

I would be commencing rice farming next year...

And that's the problem. Price goes up, everyone jumps in, supply exceeds demand, price drops like a rock. Farmers cry in their beer.

My heart goes out to them as they are "just pawns in game of life".

It's economics. Or would you only plant when supply is high and demand low?

I'd plant based on the anticipated price when my harvest came in. If all my neighbors were planting more rice, I'd be considering tomatoes.

(Edit: And if I was really smart, I'd lock into a futures contract to to sell my crop at a pre-planting price to at least guaranty I won't go broke because of market foibles. Broke because of drought? Maybe. Market manipulation? Too risky)

Edited July 22, 2015 by impulse

[Emster23]

"What's this got to do with the price of rice in China?" (old question when folks intro off the subject remarks in conversation). Sorry couldn't help myself.

[wabothai]

Plenty of rice (as said) and the price goes up. Other than plain greed could someone explain?

Edited July 22, 2015 by wabothai

[FangFerang]

Domestic demand is high, not international demand. Domestic supply is low, not international supply. Now that the Rice Lords have the supply, they plan on a domestic price hike...

First we had the Military Coup, followed by the Political Coup (the pending Brand New [old] Charter), and now we have an Economic Coup...

To which Wiley Coyote School of Super Geniuses did these meat heads attend?

[sammygood]

somebody (consumers) will pay for the mistakes made ... that is the thai way

in case of not enough customers, raise the price

in case of shortage, raise the price

in case of corruption, do nothing

[bassman]

Plenty of rice (as said) and the price goes up. Other than plain greed could someone explain?

Plenty of old rice that will need to be sold at discount. New rice crops will have a premium over the stored grains. What would you rather eat, rat shit, weevil infested off color and molded grain or fresh, bright white grain harvested this year?

The rising prices are the new rice, even the best of the 15 mil. stock will not bring the price of this season's harvest.

Also drought is impacting India and Pakistan, not just Thailand.