DFT: Thailand should reduce rice production

BURIRAM, 10 May 2016 (NNT) - The Department of Foreign Trade has raised concerns for over production of Thai rice, despite confirmation that rice exports for this year will be able to hit a previous forecast of 9.5 million tons worth 5.05 billion US Dollars.

Foreign Trade Director-General Duangporn Rodphaya said that for the first 4 months of the year, the government successfully exported over 3.6 million tons of rice valued at 1.5 billion U.S. Dollars, and that it will definitely be able to reach its target at the current rate.

Nevertheless, Duangporn said Thai rice production is currently well over supply at roughly 30 million tons a year, while the domestic market only consumes 10 million tons of rice annually and foreign markets only require an additional 10 million tons from the kingdom.

With demand of just 20 million tons, the Director-General proposed that Thailand should only produce 25 to 27 million tons of rice annually, with the additional five million to ensure sufficient rice stocks if demand fluctuates.

Duangporn added that with oversupply comes falling product prices.

As Thailand becomes less able to maintain competitive prices due to rising living costs, the director-general said farmers should begin shifting their focus towards growing higher quality rice, while allocating areas for others crops, fruit or livestock.


-- NNT 2016-05-10

The lack of water will help with the oversupply.

The lack of water will help with the oversupply.

My thoughts, exactly.

We are in a drought situation affecting tens of thousands of farmers and we have a potential oversupply situation. Can this be?

But, but, but Phoem and Phoon only yesterday "predicted" water will be plentiful, crops will yield good harvests and food supplies will be abundant.

Now's not the time to consider "Science" and "Economic theory".

The lack of water will help with the oversupply.

You'd have thought so but where we are, just north of Kanchanaburi, every single pump available seems to be pumping water into the paddies.

As ever, one must differentiate between the large scale farmers, growing for the market and the legions of small farmers growing the stuff to put on the table for their families.

you all are missing the Point - plenty Water is needed for the given Advice

"farmers should begin shifting their focus towards growing higher quality rice, while allocating areas for others crops, fruit or livestock"

...Thai rice production is currently well over supply at roughly 30 million tons a year,

while the domestic market only consumes 10 million tons of rice annually and foreign markets only require an additional 10 million tons from the kingdom...

10 Millions Tons of Rice oversupply ( just imagin a Company produces 1/3 of a certain Product for no Need/no Customer every Year )

what I see here, Thailand is in Need for a Government Agicultural Substitution Programm, specially when it comes to the Statement

"As Thailand becomes less able to maintain competitive prices due to rising living costs"

Maybe there should be some "Start Ups" in the farming Sector - any Ideas about?

They are right when they say production should be lowered. And as many of the rice farmers as possible, should switch crops. Rice is the singular commodity that insures that one stays in poverty, forever. It is the crop the elite want the masses to grow, so they can ensure their long term domination of the country. Get into something creative. Hydroponic herbs, exotic fruit, unusual melons, vegetables, other grains, anything but rice. Anything.

If a free market was allow to function, the problem would solve itself.

They are right when they say production should be lowered. And as many of the rice farmers as possible, should switch crops. Rice is the singular commodity that insures that one stays in poverty, forever. It is the crop the elite want the masses to grow, so they can ensure their long term domination of the country. Get into something creative. Hydroponic herbs, exotic fruit, unusual melons, vegetables, other grains, anything but rice. Anything.

I agree 100% with this, but the elite have this covered by keeping the vast majority of the "rice farmers" uneducated and unable to think for themselves! being kept on the edge of poverty helps also!

'Duangporn added that with oversupply comes falling product prices.' Well, that's the recognised economic theory. This is Thailand, where the logical theory gives way to that of populism; and in the case of rice production, to the farmer's wants.

If a free market was allow to function, the problem would solve itself.

The clue is in the word 'free'.

The lack of water will help with the oversupply.

No matter what the government says about water conservation, where do you suppose much of the available water is going?

With the amount of Paddies that are vanishing under concrete around our way it won't be many years before Thailand has to import rice for its own population. Actually; they may not need to as the queue's at Mac Donalds and KFC get ever longer and the young Thai's are gradually moving away from traditional rice dishes. Just count the tubs of lard walking around now compared to just five years ago, and sadly many of them are just kids and teenagers. Explosion of health problems ahead in 20-30 years time for sure.

The lack of water will help with the oversupply.

You'd have thought so but where we are, just north of Kanchanaburi, every single pump available seems to be pumping water into the paddies.

Not just rice. Lots of 'diversified' crops up that area - seen from the roadside at least - are hard to see for all the blue plastic pipes and sprinklers.

They are right when they say production should be lowered. And as many of the rice farmers as possible, should switch crops. Rice is the singular commodity that insures that one stays in poverty, forever. It is the crop the elite want the masses to grow, so they can ensure their long term domination of the country. Get into something creative. Hydroponic herbs, exotic fruit, unusual melons, vegetables, other grains, anything but rice. Anything.

I agree 100% with this, but the elite have this covered by keeping the vast majority of the "rice farmers" uneducated and unable to think for themselves! being kept on the edge of poverty helps also!

I think there is some or even much truth here. One of the problems is the average farmer has a primary school education and is in his or her late 50s to mid 60s. They don't want to be told they have been doing it all wrong for thousands of years. They just want the government to subsidise them using taxes raised from the cities. So it's quite easy for those in power to just leave them like that and achieve their objectives by default. In hard core areas of Isaan where they are not open to growing other crops, govt should start by helping improve yields with better seeds and more efficient organic methods, although even that is hard. When this generation has moved on things are likely to change whether the 'elite' on both sides of the divide want it or not. So it will be better for them to get with the program.

They are right when they say production should be lowered. And as many of the rice farmers as possible, should switch crops. Rice is the singular commodity that insures that one stays in poverty, forever. It is the crop the elite want the masses to grow, so they can ensure their long term domination of the country. Get into something creative. Hydroponic herbs, exotic fruit, unusual melons, vegetables, other grains, anything but rice. Anything.

I agree 100% with this, but the elite have this covered by keeping the vast majority of the "rice farmers" uneducated and unable to think for themselves! being kept on the edge of poverty helps also!

I think there is some or even much truth here. One of the problems is the average farmer has a primary school education and is in his or her late 50s to mid 60s. They don't want to be told they have been doing it all wrong for thousands of years. They just want the government to subsidise them using taxes raised from the cities. So it's quite easy for those in power to just leave them like that and achieve their objectives by default. In hard core areas of Isaan where they are not open to growing other crops, govt should start by helping improve yields with better seeds and more efficient organic methods, although even that is hard. When this generation has moved on things are likely to change whether the 'elite' on both sides of the divide want it or not. So it will be better for them to get with the program.[/quot

All well and good but the government (read elite) don't want to help them they want them right where they are and to throw them the odd bone occasionally so they look like they give a shit. Although I agree in principle "hydroponic herbs"? Really? drawing a bloody long bow there. Who is paying for the equipment education and start up costs for these magic herbs and what is their retail value playfellow?

Oh. I thought the headline was DTF.

Adam Smith would have flipped. This function of increase or reduction has always been automated by the market mechanism, if it has only been allowed to work.

Meddling politicians!

I hope they've taken into account all those extra predicted tourists that will need feeding.

They are right when they say production should be lowered. And as many of the rice farmers as possible, should switch crops. Rice is the singular commodity that insures that one stays in poverty, forever. It is the crop the elite want the masses to grow, so they can ensure their long term domination of the country. Get into something creative. Hydroponic herbs, exotic fruit, unusual melons, vegetables, other grains, anything but rice. Anything.

I agree 100% with this, but the elite have this covered by keeping the vast majority of the "rice farmers" uneducated and unable to think for themselves! being kept on the edge of poverty helps also!

I think there is some or even much truth here. One of the problems is the average farmer has a primary school education and is in his or her late 50s to mid 60s. They don't want to be told they have been doing it all wrong for thousands of years. They just want the government to subsidise them using taxes raised from the cities. So it's quite easy for those in power to just leave them like that and achieve their objectives by default. In hard core areas of Isaan where they are not open to growing other crops, govt should start by helping improve yields with better seeds and more efficient organic methods, although even that is hard. When this generation has moved on things are likely to change whether the 'elite' on both sides of the divide want it or not. So it will be better for them to get with the program.

If the government and the ruling elite had any interest in "lifting" up the masses, they would encourage alternative crops, and offer training, financial assistance, and similar programs, such as those that are being offered in Colombia, and Costa Rica, to the local farmers. As a result, they are creating a sustainable agricultural system, and the farmers are being lifted out of poverty. But, this is a progressive system, and NOBODY has every described ANY administration that Thailand has had in the recent past, as progressive, visionary, or forward thinking. Nor noble. There is so much that could be done to encourage farmers to move on, from the dreaded rice crop.

The sad truth, is the the elite are as locked into their old ways, as the farmers are. Everybody benefits from a growing and thriving economy, and the elite benefit when the masses are better educated, and more productive. The old mind set of keeping the masses dumb in order to rule effectively, is outdated, and colonial minded. Those days are long gone. So, get with the program, embrace the modern age, lift up your people, and hold your heads high. Just do the right thing, because it is the right thing to do, and because you are in a position to do it.