Thai govt takes more steps to help maintain price of jasmine rice

[webfact]

Govt takes more steps to help maintain price of jasmine rice



UBON RATCHATHANI, 12 November 2015 (NNT)-The Minister of Commerce led a group of rice exporters on a visit to Ubon Ratchathani province to observe rice productivity.

According to Commerce Minister Apiradee Tantaraporn, their observation was also meant to address issues hampering the production of rice and rice farming during the production years of 2015 and 2016.

Mrs. Apiradee said finding would be reported to Prime Minister Prayut Chan-o-cha in order to find immediate solutions to help rice producers maintain their productivity.

The government has also introduced an income assurance scheme via the Bank for Agriculture and Agricultural Cooperatives (BAAC) for jasmine rice farmers.

Under the scheme, the BAAC will provide a loan of upto 13,500 baht per ton depending on the grain quality to farmers, who are allowed to return the money whenever they are able to sell rice at a favorable price.

The Thai Rice Exporters Association has also jumped on the band wagon by buying the first lot of 100,000 tons of jasmine rice from farmers at the price of 26,000 baht a ton.

The association is hopeful the move will eventually raise the buying price of rice in the market.

-- NNT 2015-11-12

[Always18]

Thailand trying to control the market price of rice....................

Now where have I heard of that brainless populist ploy before?

Edited November 12, 2015 by Always18

[jgriff]

Here we go again

[worgeordie]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

[thesetat2013]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Maybe it would raise the price of Thai rice but other countries would not be affected I think.

[Thai at Heart]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

I am sure at the port it will be more expensive.....

[AGareth2]

to maintain production you require water

and

who will this benefit?

[phoenixdoglover]

Left Hand: Do not grow rice; there is a water shortage

Right hand: if you grow rice, we will pay you double the market price

Brain: Zzzzzzzz.

[soalbundy]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Hasn't helped in my village, two farmers who have sold good quality jasmin rice last week had to sell it for 8 Baht a kilo, that is taking the piss

[Thai at Heart]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Hasn't helped in my village, two farmers who have sold good quality jasmin rice last week had to sell it for 8 Baht a kilo, that is taking the piss

This market system does not work. Obviously the buyers all collude to move the price as they see fit.

[siliconvalley]

Wow.. Everyone who is commenting is 1000% dead on right. Farmers are getting the 1970's movie (Shaft) The kind Thai government wants to loan the farmer 6.75/baht per kilo with hopes to jam it in till they cough. And the middle man who knows what the farmer will take, 13 baht per kilo. Man oh Man, I asked my wife how or what we can do to either help or get involved. The wife was disinterested. No idea.

[oneday]

So prosecute YL for her rice pledging scheme, then turn around and do something very similar...what hypocrites.

[maoro]

Yes so who got the 26,000. Baht tonne.

We are getting about 9 baht kilo

[Ulic]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Maybe it would raise the price of Thai rice but other countries would not be affected I think.

Drought in Korea, Cambodia, Vietnam, Indonesia, California. Rice production should

be down significantly world wide.

Edited November 12, 2015 by Ulic

[waldroj]

Looks like she enjoyed her (first) day down on the farm! She probably gained enough experience to be able to tell Prayut that rice comes out of the ground (rather than from a bag)!

The scheme should be called PayBacc!

[Thai at Heart]

Yes so who got the 26,000. Baht tonne.

We are getting about 9 baht kilo

9, becomes 14 after milling, the transport packaging and a nice clean 10k for the exporter.

[Dumbastheycome]

Primary producers almost always get shafted. The middlemen almost always take advantage. But the saddest part of that is the primary producer is compelled to sell to service debt ( often supplied by the middlemen ).And backed up by subsidy or Govt. loans

Due to the inability/ incapacity/indebtedness many never consider witholding stock.The illusion sold by localized propagana about gluts in grain and thus prices worldwide will be eventually revealed as that.

A very blatant manipulation. 26bht/kg is a cruel teaser.But is probably a more true price indicator of value.

If only the aging small holding rice grower could plough his rice under and invest in airbourne pigs...then the middlemen just might lift their own greedy snouts long enough to learn something. Urban consumers would of course descend on everybody in protest.The same urban dwellers who enmasse have abandoned their aging parents to subsistance !

[Balance]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Maybe it would raise the price of Thai rice but other countries would not be affected I think.

Rice is a global commodity and as such the price goes up when the aggregate world demand is more that the aggregate world supply. Thailand should remove at least a portion of its rice production from the commodity world by growing organic specialty rice crops such as brown, black and red rice. Prices for these products are set separately from the commodity rice crops.

There was a nation wide agricultural extension service set up to make sure the farmers accepted the "green revolution" lies. I have seen the offices in rural provinces and it looked like there were people working there. My question is what do they do? My wife says her family, who farms 500 rai, never saw anyone from these offices. When I tell her that her family should shift some of the production to other varieties, I get the classic answer, "it is too difficult, they do this way for there whole lives."

The government is great at talking about lots of things that mean nothing. There appears to be a province based outreach infrastructure. Why is it not doing anything to help Thai rice farmers get out of the commodity vice.

[bassman]

Yes so who got the 26,000. Baht tonne.

We are getting about 9 baht kilo

Maoro, just to confirm is that 9 baht a kilo for jasmine or other varieties? My wife will be picking her jasmine next week, if the price is less than 13 baht a kilo (for jasmine) we will probably be feeding it to the chickens at that price.

[Thai at Heart]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Maybe it would raise the price of Thai rice but other countries would not be affected I think.

Rice is a global commodity and as such the price goes up when the aggregate world demand is more that the aggregate world supply. Thailand should remove at least a portion of its rice production from the commodity world by growing organic specialty rice crops such as brown, black and red rice. Prices for these products are set separately from the commodity rice crops.

There was a nation wide agricultural extension service set up to make sure the farmers accepted the "green revolution" lies. I have seen the offices in rural provinces and it looked like there were people working there. My question is what do they do? My wife says her family, who farms 500 rai, never saw anyone from these offices. When I tell her that her family should shift some of the production to other varieties, I get the classic answer, "it is too difficult, they do this way for there whole lives."

The government is great at talking about lots of things that mean nothing. There appears to be a province based outreach infrastructure. Why is it not doing anything to help Thai rice farmers get out of the commodity vice.

The price at the port moved with the global aggregate, the price at the farm rarely so. There is an obvious cartel of buyers who set the farm price.

This crop should be short by national standards at least. Why are the domestic farm prices reportedly so low?

[Balance]

I would think the up coming drought would raise the price of rice

without the help from anyone.but the government has always got

to be seen to help the farmers.

regards Worgeordie

Maybe it would raise the price of Thai rice but other countries would not be affected I think.

Rice is a global commodity and as such the price goes up when the aggregate world demand is more that the aggregate world supply. Thailand should remove at least a portion of its rice production from the commodity world by growing organic specialty rice crops such as brown, black and red rice. Prices for these products are set separately from the commodity rice crops.

There was a nation wide agricultural extension service set up to make sure the farmers accepted the "green revolution" lies. I have seen the offices in rural provinces and it looked like there were people working there. My question is what do they do? My wife says her family, who farms 500 rai, never saw anyone from these offices. When I tell her that her family should shift some of the production to other varieties, I get the classic answer, "it is too difficult, they do this way for there whole lives."

The government is great at talking about lots of things that mean nothing. There appears to be a province based outreach infrastructure. Why is it not doing anything to help Thai rice farmers get out of the commodity vice.

The price at the port moved with the global aggregate, the price at the farm rarely so. There is an obvious cartel of buyers who set the farm price.

This crop should be short by national standards at least. Why are the domestic farm prices reportedly so low?

I agree. There is no doubt that the skimming throughout the supply chain is a major reason why Thai farmers cannot make a decent living. Maybe the only way to circumvent this is by doing what has been proposed; the government setting a floor for the farmers and dealing with the corruption further up the food chain (pardon the pun).

However, I don't think that reduces the need for Thai rice farmers to move away from growing commodities. Structurally, they just are not set up for doing this, which requires large tracts of land and more mechanization. There is a German firm that has created a farmer co-op in one of the eastern provinces on the Cambodian border. They have aggregated the small patties in order to use equipment, have their own drying and sorting center and are 100% organic. As I understand it the crop is exported by the co-op and sold to German distributors directly. The farmers are paid based on their land contribution. This has been in operation for a decade or more. The Royal Agricultural Project in Chiang mai is another example of showing that small farms can grow high value crops for local markets. Thais know that most of the vegetables have too much poison on them and that is why they are soaked in water for 2 hours or more before eating . Thais as well as farang will and do buy organic products and pay more for them.

Over 50 years ago the organic movement in the United States began with no money, very skeptical farmers who did not believe it was worth the effort, and special interests that did not want to see any change. Today, it is a $30 billion ( 1 trillion Bhat) market, and grew over 9% last year. Thailand can start now and because of the people who have gone before, shorten the time to success to 5 year or so.

Bottom line - there are some models in Thailand that could be replicated. What is lacking is the political will and I think the planning and organizational ability.