Bt129 bn generated by govt’s sales of bulk of stockpiled rice

[snoop1130]

Bt129 bn generated by govt’s sales of bulk of stockpiled rice

By The Nation

 

 

The government has cleared the bulk of the stockpile of more than 18 million tonnes of rice created following the pledging schemes of previous administrations, generating income of around Bt129 billion, according to the Commerce Ministry.

 

Commerce Minister Apiradi Tantraporn said on Monday that during the past three years, the government had sold a total of 13.89 million tonnes of rice from the stockpiles, generating over Bt129.82 billion for the country.

 

“The priority now is to clear the remaining stock within this year, so that it reduces pressure for lower rice prices and ensures that the government does not face high losses from stocking the rice,” she added.

 

Source: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30317881

 

-- © Copyright The Nation 2017-6-12

[Srikcir]

16 hours ago, snoop1130 said:

generating over Bt129.82 billion for the country.

Since the junta is charging Yingluck et al for projected losses from sale of this rice, shouldn't these proceeds be credited to her alleged debt?

[ChrisY1]

Thb1000/ton?

[Yme]

Bt9,346 / US$274.50  a ton by my calculation 

 

and it should certainly be deducted from the governments claim against Yingluck if it was rice collected and paid for under the rice pledging scheme. As should earlier sales the government has conducted of pledging scheme rice.  

[billd766]

41 minutes ago, Yme said:

Bt9,346 / US$274.50  a ton by my calculation 

 

and it should certainly be deducted from the governments claim against Yingluck if it was rice collected and paid for under the rice pledging scheme. As should earlier sales the government has conducted of pledging scheme rice.  

 

 I agree with you, after of course deduction the cost of the storage etc over the last few years.

 

If you assume that it was bought for 15,000 per ton then there is an immediate los of 5,500 baht per ton as the difference between the buying and the selling price, the cost of storage for 3 or 4 years, the cost of the interest on the money that the government (the taxpayers money) to buy the rice in the first place and there won't be much left of that 9,346 baht per ton.

[Yme]

On 6/13/2017 at 1:31 PM, billd766 said:

 

 I agree with you, after of course deduction the cost of the storage etc over the last few years.

 

If you assume that it was bought for 15,000 per ton then there is an immediate los of 5,500 baht per ton as the difference between the buying and the selling price, the cost of storage for 3 or 4 years, the cost of the interest on the money that the government (the taxpayers money) to buy the rice in the first place and there won't be much left of that 9,346 baht per ton.

Delay in the sale is not the fault of the defendant. 

Only hom mali was paid for at Bt15,000/ ton. 

 

 

 

[billd766]

2 hours ago, Yme said:

Delay in the sale is not the fault of the defendant. 

Only hom mali was paid for at Bt15,000/ ton. 

 

 

 

 

Really? Do you have anything to back you up on that price?

 

http://www.cnbc.com/2014/01/16/thailand-offers-rice-at-a-loss-as-it-struggles-to-pay-farmers.html

 

The government does not disclose at what prices it offloads rice in the domestic market, but traders estimate they will be substantially below anything offered on the international market.

"We need to adjust ourselves in order to sell rice at appropriate prices to get liquidity to run the rice-buying scheme," said Surasak Riangkrul, director-general of the Foreign Trade Department, which oversees sales of the government's rice stocks.

He declined to disclose the exact price Thailand is offering but another official in the commodity trade department said Bangkok quoted $475 a tonne in a government-to-government deal with Manila last month to supply 500,000 tonnes.

(Read more: Thai protesters start Bangkok "shutdown" in bid to)

This is almost a third below the estimated cost of 22,000 baht ($669) per tonne the government incurred on buying paddy from farmers, milling and storage.

 

https://www.forbes.com/sites/simonmontlake/2011/09/22/thailand-subsidies-and-the-price-of-rice/#47225f606f4c

 

Thailand has repeatedly tinkered with price supports for farmers. The previous government paid farmers when market prices fell below a floor rate. Prime Minister Yingluck Shinawatra, who took power in August with overwhelming rural support, has committed to buying rice from farmers, as much as possible, in order to boost their incomes. The price for unmilled paddy rice has been set at $500 a ton, compared to $271 a ton in July. This makes it more attractive to sell to government agencies than to Thai exporters, who ship around 10m tons a year. The U.S. Department of Agriculture predicts that Thai rice exports could fall by 20% in 2012, a potential boon to Vietnam, the world’s second-largest exporter.

As you might guess, this policy is highly unpopular with Thai exporters who want to stay competitive. Vichai Sriprasert, CEO of Riceland International, told the Foreign Correspondents Club of Thailand (FCCT) on Wednesday night that the guaranteed prices are “way above market levels” and could price Thailand out of world markets. He calculated that at $500 a ton, overseas buyers could expect FOB export prices of $830 a ton. This compares to current prices of $629 a ton, which is already on the upswing since it became clear that Thailand was serious about jacking up crop prices.

Edited June 16, 2017 by billd766
Added extra text