Commerce Min: Thailand must grow rice according to market demand

BANGKOK, 15 February 2016 (NNT) – The Ministry of Commerce said it is necessary that Thailand produce rice according to the actual demand in the market.

Permanent Secretary of the Ministry of Commerce Chutima Bunyapraphasara convened agriculture-related officials to a meeting to discuss the possibility of Thailand reducing the number of rice plantations. According to her, the supply of rice in the country will exceed demand should farmers continue the off-season harvesting of paddy.

The idea has prompted rice producers to request that the government clearly regulate prices of rice so as to allow them to plan their cultivation accordingly.

She said the ministry would soon summon rice buyers and ask them to purchase paddy directly from producers without going through a middleman.


-- NNT 2016-02-15

Shocking when you consider Adam Smith and others back in the early 17th century saw laissez-faire as the most efficient form of trade. Well here we are, three hundred years later, and our military govt are just waking up to the fact that the more govt interferes, the inefficiency and problems mount. Bare-bones governance is needed, let the free market take care of itself. Thailand would benefit immensely from a dismantled govt, police force, armed force, civil servants, judiciary, village headmen etc. simple supply and demand without corrupt favor.

Having control on the worlds weather ( el nino ) which has effects on the world over , and also effects rice producing countries tonnage rates , which will fluctuate on quantity and quality, Thailand will sell 300,000 odd thousand tons of a b grade rice to Iran roughly worth around $120 million, and if the expected forecast is hit for 2016 a near tonnage of 9 million tons export,

Trying to forecast the demand internally and externally is a tough ask,

Have full belly"s around the world been achieved already?

Hehee! Good luck with the gov trying to stop farmers from growing that second crop. So far it has not worked. Even with the threat of not having enough water.

Well that would be the sensible thing to do.....BUT

regards Worgeordie

the supply of rice in the country will exceed demand should farmers continue the off-season harvesting of paddy

It’s not the farmers growing off-season rice but more lacking or poor government policy and the independence of international rice grower community:

The Prayut cabinet just approved last week a one billion baht fund for the Cooperatives Promotion Department to subsidize farmers to produce more crops.

Mr Charoen Laothammathat, president of Thai Rice Exporters Association expects the rice market situation would return to normal once the government manages to off-load 4-5 million tons of rice in the stockpile this year and another five million tons next year.

Competitors like India will happily increase their rice sales as Thailand reduces its production.

The Prayut regimes seems obsessively focused on Thai rice farmers as being the problem to low market prices. Maybe that's more due to a difference in work ethic - armchair generals vs. soil pounders.

The government should look instead at the reality of international economics. The key is not lowering production quantity but lowering production cost. The government needs to promote consolidation of all rice operations and mechanization to enhance economy of scale savings to produce profits in the presence of lower market prices.

You can not stop the rural farmers from doing anything. They will plant all the rice they want and they don't care what anyone in Bangkok says.

perhaps this commerce minister ought to go back to school.

Where is that biggest vote buying buyer to perk up market demand?

You can not stop the rural farmers from doing anything. They will plant all the rice they want and they don't care what anyone in Bangkok says.

They will however cry for government assistance if they can't sell it for a good price.

Again.

If the government stays out of it the market will govern itself.

Whats's this about regulating prices?

Cannot leave the market alone.

Somebody somewhere always has their fingers in the commodity markets. Follow the money trail.

Don't grow rice, uses too much water (and we have 10 million tons still in stock). Don't grow palm oil, price now low (and it is a long term investment). Don't grow rubber, demand lower than production (another long term investment). I hear some rice growers have switched to cassava - but now i hear that the government 'recommends' that farmers shouldn't harvest their cassava, because they grow too much (apparently a 22 million ton surplus .......). Which crop should the government suggest next?

Don't grow rice, uses too much water (and we have 10 million tons still in stock). Don't grow palm oil, price now low (and it is a long term investment). Don't grow rubber, demand lower than production (another long term investment). I hear some rice growers have switched to cassava - but now i hear that the government 'recommends' that farmers shouldn't harvest their cassava, because they grow too much (apparently a 22 million ton surplus .......). Which crop should the government suggest next?

Indica and sativa?