Department of Foreign Trade to discuss the sale of rice with African nations

[webfact]

Department of Foreign Trade to discuss the sale of rice with African nations

BANGKOK, 23 May 2016 (NNT) - The Department of Foreign Trade (DFT) is expediting its search of new sales channels for the government’s rice reserves, after numerous African countries expressed interest in buying on credit.

DFT Director-General Duangporn Rodphaya revealed that her agency has consulted with the Ministry of Finance on the feasibility of selling the rice reserves on credit. Details of the discussions have yet to be concluded. In order to minimize risk, the department must thoroughly examine the details of the scheme, payment methods, and credit ratings of potential buyers.

The DFT will prepare to meet with African buyers and various banks to discuss possible business matching and transaction methods. The Thai government currently has no policy of trading rice with another commodity, due to complexities in price calculations.


-- NNT 2016-05-23

[happy chappie]

I can see it now....millions of tons of rice sent to Africa,then when it gets there they'll say it's rotten and they ain't paying for it.everyone would of got their brown envelopes and it'll be forgotten about.

[Winniedapu]

"numerous African countries expressed interest in buying on credit"

LOL

I bet they are too... especially the credit bit. The only people better than Thais at fraud and cheating are in Africa.

This'll be fun.

Winnie

[NextStationBangkok]

African will buy if they get typical Thai 90% discounts for rice. African budget is 5 Baht per kilo, where as Thailand price is 50 Baht per Kilo.

[slapout]

I have known a few Thai, who are/were considered "good businessmen in Thailand" as they appeared to come out on top /ahead on business they were involved with, in Thailand. Some of them opted to start doing business with companies outside their sphere of influence (outside Thailand) and further increase their wealth.

They, for the most part, found the picking were not as easy or in most cases as profitable as expected due to the advantage the foreign companies had in experience and personel who were trained and aware of their areas of expertise. Its a different ball game when your dealing with people who are more intelligent than you are and you do not have a Thai like legal /judicial system to fall back on.

In addition, Thailand seems to have adopted many of the Chinese ways of conducting business and most of the business world are aware of the numerous pitfalls that this can entail. Trust is not a consideration when approaching doing business with many countries of Africa nor Asia. As most should realize by now, the much touted MOU which we hear so much about is basically worthless. As the more astute business people say, "I trust the agreement make with these people, when the money is in my account or a irririvokable letter of credit is on deposit for me to draw against at a bank of my choice"

[Srikcir]

The Thai government currently has no policy of trading rice with another commodity, due to complexities in price calculations.

Russian and Chinese military equipment, Russian oil and gas apparently don't count as a commodity.