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NEWS |
July 29, 2010 Thailand Rice Exports Facing Tough Competition Rice exports from Thailand, the world’s largest rice exporting nation have plummeted more than 30 % in the first half of this year mainly due to stiff competition from cheaper Vietnamese jasmine rice. Source: Oryza.com July 15, 2010 Main rice crop to be delayed
The ministry previously suggested that the cultivation of the grain, especially in irrigated areas such as the Central Plains and the lower North, begin sometime in mid-July. But it revised the decision this week as the impacts of this year's drought are still keenly felt due to deficient rainfall and the rapid decrease of water in many reservoirs across the country. Thailand's planting of the main crop paddy, which accounts for about 23-24 million tonnes of total paddy volume, depends largely on rainfall and the irrigation system. Agriculture Minister Theera Wongsamut said that water levels in major and medium-sized dams have been low, at 13% of their capacities or 9,265 million cubic metres of usable water in total. The usable water volumes at two major dams that irrigates rice farmlands in the Central region and the lower North have been small.The Bhumibol dam in Tak province now has only 264 million cubic metres of usable water, or 2% of its capacity, while the Sirikit dam in Uttaradit has 4% or 361 million cubic metres. According to Mr Theera, the ministry will announce the postponement officially and send officials to inform the farmers as well as monitor the climate. The planting-delay advisory is the second in a row after the ministry earlier warned the farmers to skip growing second rice crops since there would not be enough water to irrigate their farmlands. The government has also forecast that the drought could decrease the yield per rai of the second-crop paddy, bringing the total production to 9.58 million tonnes, down from an earlier projection of 10.52 million tonnes. The ministry, however, is confident the lower supplies and planting delays will not affect Thailand's rice exports, projected at between 8 million and 8.5 million tonnes this year. Source: Bangkok Post
July 14, 2010 China Reduces Forecast for 2010 Rice Production, National Gain Center Says China reduced the 2010 rice output forecast to 196.6 million metric tons from an estimate of 197.3 million tons made a month ago, the China National Grain & Oils Information Center said today in its July report. The 2010 production forecasts for other crops were maintained at 168 million tons of corn, 115.1 million tons of wheat, 14.5 million tons of soybeans and 12.6 million tons of rapeseed, according to the report. Source: www.bloomberg.com
June 25, 2010 Possible lifting of Indian rice export A rumoured withdrawal of India's ban on rice exports would directly affect Thai exporters by resulting in an overwhelming global supply. However, no one has yet confirmed the rumour, and exporters are awaiting an official announcement from the Indian government. Thai Rice Exporters Association president Korbsook Iamsuri cautioned against panicking over rumours in the absence of a formal announcement. Exporters are closely watching what India will do. "If the export ban were lifted, rice prices would continue to decline this year, because there would be a greater supply in the world market amid sluggish demand," Korbsook said. She said exports of Thai parboiled rice would be hardest hit, because India was a major rival for this kind of rice. India is said to be mulling whether to lift its ban on exports of basmati rice this year, which would pull down global prices and affect Thai shipments. The Elephant Group, a major rice importer in Nigeria, said the Indian government was prepared to allow exports of Basmati rice this year, to diminish its flourishing supply after plentiful rains. Yesterday, the export price of Thai 100percent white rice was quoted at US$479 (Bt15,500) per tonne, up from $471 last week, due to lower supply. Fivepercent white rice rose from $448 a tonne to $450 and parboiled rice from $462 a tonne to $496. Commerce Ministry permanent secretary Yanyong Phuangrach said Thai rice exports would not be seriously affected if India cancelled the ban. India must still maintain large reserve stocks and would not export large volumes of rice during a time of drought, he said. At a recent rice traders' meeting in Dubai, participants predicted global trading in the commodity would reach 30 million tonnes this year. Of that, India will supply 25.3 million tonnes, which is almost what the entire world consumes in a year. However, Indian rice traders are worried. They say if the government does not cancel the export ban, the country will lose market share to Pakistan. The Indian government announced the ban in 2008, to ensure a domestic supply. However, a rich supply and rising rice prices worldwide are pressuring India into revising the strategy. Indian traders also point out too much rice production this year has directly put pressure on them, because they must carry over stocks from last year. Nonbasmati Indian rice was quoted at $500 a tonne previously but has been going for $400 this year, prompting traders to shoulder a loss. The price will continue to decline, due to the rich supply. Source: The Nation
June 17, 2010 Iraq To Buy 30,000 MT Iraq's state grain board has issued an international tender to purchase at least 30,000 MT of rice. The bidding deadline is July 4 and offers must remain valid until July 11. Source: Oryza.com
June 9, 2010 Indian Monsoon Likely To Be Delayed Scientists at India's state-run India Meteorological Department have announced that India's summer-sown rice plantings are likely to lag by 7-10 days in some key growing states due to a possible delay in monsoon arrival. Source: Oryza.com
June 2, 2010 Iraq Buys 90,000 MT From Vietnam Source: Oryza.com
May 13, 2010 Govt plans paddy production hike
This marks an increase from the current output of 29 million tonnes of paddy each year. The country would increase its national rice cultivation area to not more than 62 million rai from the 57.5 million set in the strategic plan which ends this year. The Agriculture and Co-operatives Ministry, responsible for production policy, has drafted several programmes to help accelerate paddy production and farm income, said permanent agriculture secretary Yukol Limlaemthong. The first programme would promote research and development into new rice strains that are resistant to plant diseases and insect infestations caused by climatic changes, he said. Mr Yukol estimates 12 new rice varieties will be added over the next five years to the current 97 strains. Production technologies will be improved to reduce the quantity of chemical fertilisers used for growing rice, which would in turn reduce farm production costs. The ministry also aims to increase rice-paddy yields by at least 10% from an average 457 kilogramme per rai, up to 679 kg in the best-case scenario. To reach that target farmers are being encouraged to apply new farming methods that comply with Good Agriculture Practice (GAP) and use water more efficiently. Mr Yukol said that the ministry would operate rice community centres nationwide to help farmers conform with GAP rules. These methods should help farmers slash production costs by about 15% throughout the five-year programme. Zoning will be applied to promote local premium-quality rice strains, such as fragrant Hom Mali rice in the Northeast, to strengthen the geographical identity of rice. Mr. Yukol said that the Rice Department has been instructed to survey farmer incomes over past years so the government can help improve their future earnings. Source: Bangkok Post
April 21 Rice Falls in Longest Slump Since 2002 on Slower Global Demand Rice fell for the eighth straight session, the longest slump since 2002, on declining demand for supplies from the U.S. amid falling world prices. World rough rice sells for about $10.65 per 100 pounds, the U.S. Department of Agriculture’s Commodity Credit Corporation said today in a report. That’s 15 percent below the futures price for May delivery on the Chicago Board of Trade. “There’s no business being done right now,” said Dennis DeLaughter, the owner of Progressive Farm Marketing Inc. in Edna, Texas. “They talk about all this pent-up demand, but there’s none coming down the road. We feel U.S. prices are too high.” Rice futures for May delivery fell 0.5 cent to $12.485 per 100 pounds on the CBOT. The price has dropped 5.3 percent since April 9, the day before the current skid began. The most-active contract has declined 16 percent this year, partly because of reduced demand. Source: Bloomberg
April 6, 2010 State plans rice purchase; Wants up to 900,000 tonnes to raise prices The government is preparing to buy as much as 900,000 tonnes of paddy from farmers in a move to raise prices in the Thai rice market. The measures will also include buying milled rice from millers. After meeting with rice exporters and millers, Commerce Minister Porntiva Nakasai said price pressure was expected to increase for rice, as an estimated 1.8 million tonnes of rice from the second-crop season are being released to the market. To shore up paddy prices, the government has set up more than 40 units to buy new output from farmers. But the move has been called ineffectual as only a dozen mills out of 1,700 nationwide have participated in the buying scheme. Millers claim their income, particularly from rice polishing, has tumbled since the government replaced the long-established paddy-pledging programme with a price insurance scheme this year. They also complain of higher expenses from interest on loans for the funds they must place as collateral to the government to participate in the rice-buying programme. Traders and rice millers mostly prefer the pledging scheme, which provided revenue from rice polishing and renting out warehouses to store government rice. Mrs Porntiva said the ministry was also drafting incentives for millers and exporters to buy more paddy from farmers to bolster domestic rice prices, which have fallen steadily in line with softening foreign demand.Rice exporters and millers who participate in the buying programme may be allowed to exchange new paddy bought from farmers with milled rice from government stocks. Millers and exporters might also be permitted to sell the government milled rice processed from paddy they bought from farmers. But the government will oblige rice millers and exporters to pay farmers more than the current market price for paddy. The rate should match the government's benchmark price, said the minister. The government's benchmark price was set yesterday at 9,087 baht a tonne, while market prices for paddy are from 8,500 to 8,600 baht per tonne. Mrs Porntiva said the incentives would last for about a month and are likely to raise domestic rice prices. But approval for the measures is required first from the national rice policy committee. Source: Bangkok Post
April 1, 2010 China official denies cutting off water to SE AsiaBEIJING – China denied Wednesday it has "hijacked" water from the Mekong River, causing its lowest levels in 20 years for areas downstream in Southeast Asia. Liu Ning, vice minister of water resources, suggested that China's dams and irrigation projects upstream have actually helped stave off some of the effects of drought _ though it was not clear whether he was referring just to parched areas of southwest China or the wider region. The Mekong River, which originates in the Tibetan Plateau, is at its lowest level in nearly two decades, halting cargo traffic on the waterway that is the lifeblood for 65 million people in Cambodia, China, Laos, Myanmar, Thailand and Vietnam, according to the Mekong River Commission. Nongovernmental organizations have long blamed China for shrinking the Mekong and causing other ecological damage. China has built several dams on the upper reaches of the river and has more planned. "We cannot say that China hijacked water resources and contributed to the drought," Liu told a news conference when asked about the effect of China's water projects on the water supply in Southeast Asia. "If there were no irrigation facilities and reservoirs built in drought areas, the drought would have come earlier, the situation would have been more severe, and there would have been more people suffering from a lack of drinking water," Liu said. He did not specify which areas he meant. Liu emphasized the need to step up the construction of more water conservancy projects to insure adequate drinking water. He said neighboring countries are aware of China's measures and China will discuss with groups like the Mekong River Commission, an intergovernmental organization that oversees the sustainable development of the river basin. "The building and use of hydropower plants will only be done based on scientific evidence, and this process is very strict in China," said Liu, who is also secretary-general of the State Flood Control and Drought Relief Headquarters. Little rainfall since late last year in southwest China has left millions of residents facing water shortages in that region's worst drought in a century. About 24 million people, twice more than in the same period during normal years, face drinking water shortages, Liu said. "We should prepare to fight a long drought ... to prepare for the worst-case scenario," he said. Yunnan, Guangxi, and Guizhou regions have been the hardest hit by the drought despite teams of workers drilling for wells and transporting drinking water, Liu said. Liu said the severity of this year's drought was due to a decline in rainfall, low river flows, higher temperatures, and inadequate water storage facilities and is likely to continue until mid- to late May, when the rainy season begins. Source: AP Press
March 24, 2010 Low river levels threaten northern rice crops Unusually warm weather has affected many hectares of rice in the northern provinces, which are also suffering from a lack of water for irrigation. Higher than usual temperatures since December have caused water levels to recede in many Lao rivers, creating problems for farmers as the water shortage fails to meet their agricultural needs. The government has recently approved funding to upgrade the irrigation systems in Vientiane and in Borikhamxay province to supply sufficient water for dry season rice. The Department of Irrigation has also asked farmers to take measures to save water until the rains arrive. Many hectares of rice have been affected, though exact figures are still being calculated by provincial authorities. But the provincial capital of Luang Namtha has been hit particularly hard, said the Deputy Head of the Provincial Agriculture Section, Ms Chanthone Duaysipaserth. She said many irrigation systems in the province are failing and are unable to supply water to rice fields because river levels are too low. Ms Chanthone said this dry season provincial authorities encouraged farmers to produce 1,450 hectares of rice. They planted over 2,000 hectares, but it is still not clear exactly how much of that will be salvaged. She said she will work with the irrigation section and the agriculture and forestry extension division to table a report on the extent of the damage. In the meantime, farmers in Luang Namtha face severe food security problems. Young rice crops in Oudomxay and Bokeo provinces have also been affected by the same problem after farmers finished planting last month. The amount of rice damaged will be confirmed next week. Huaphan province has been fortunate and has not yet experienced any irrigation difficulties, said the provincial agriculture section Head, Mr Khamphao Banvidone. He said most rice fields have been planted in areas where irrigation facilities are supplied and are still operational. But he added that if the weather remained hot through to next month, the irrigation systems may not be able to supply any more water. Source: www.asianewsnet.net
March 17, 2010 Philippines May Approve GM Rice Soon
Source: Oryza.com
March 11, 2010 The failed guaranteed-price scheme
Source: TANN
March 4, 2010 India To Export 45,000 MT According to a recent statement released by the government of India, the government has allowed the export of 45,000 MT of non-basmati rice through two state-run agencies with immediate effect.
Feb 24, 2010 PM insists rice prices must be fair
Prime Minister Abhisit Vejjajiva said yesterday the government would take into account investment cost, market price and quality of rice before accepting any bids from Monday's tender, the second attempt in two weeks to sell state rice stocks. The government on Monday offered 350,000 tonnes of 5% broken white rice and 150,000 tonnes of Pathum Thani fragrant rice as part of its accelerated plan to sell its massive stockpile of up to 5.6 million tonnes of milled rice bought from farmers to support prices in the previous season. The latest tender received bids from 11 companies to buy a total 815,529 tonnes: 659,454 tonnes of white rice and 156,074 tonnes for Pathum Thani worth a combined 12.44 billion baht. The bidding prices for white rice range from 11,765 to 15,550 baht per tonne, with Pathum Thani fragrant rice at 15,500 to 18,500 baht a tonne. The prices offered for white rice are much lower than in the previous bid last month, when they quoted 14,000 to 16,000 baht a tonne. Vichak Visetnoi, director-general of the Foreign Trade Department, said that authorities would attempt today to bargain with exporters for higher prices before submitting the outcome to Commerce Minister Porntiva Nakasai for acknowledgement, and to the national rice policy committee chaired by the premier for final approval. In related development, Mr Abhisit said that the cabinet yesterday directed the Commerce Ministry to investigate the release of information stating that the government would sell as many as 2 million tonnes of its rice stocks over the next few months, as such news would cause a price slump and affect the overall rice trading market. Source: Bangkok Post
Feb 19, 2010 Rice bid for 500,000 tonnes due Monday
Vichak Visetnoi, director-general of the Foreign Trade Department, said the Commerce Ministry next Monday would offer 350,000 tonnes of 5% broken white rice and 150,000 tonnes of Pathum Thani fragrant rice to exporters. "The timing is right during the next two months to release stocks as key exporters such as Vietnam and Burma have slowed their shipments while demand remains strong," he said. Commerce Minister Porntiva Nakasai said the ministry was also speeding auctions of 300,000 tonnes of milled rice with the Agricultural Futures Exchange of Thailand. The government last year approved the sale of about 1 million tonnes of Hom Mali and 5% white rice through the futures market under a "basis auction" method in which AFET rice futures are used as the reference. The market has conducted auctions for state stocks totalling 700,000 tonnes. According to Mrs Porntiva, the National Rice Policy Committee recently directed the ministry to study a plan to sell another 1 million tonnes via the futures market this year. Mr Vichak said the government was likely to sell as many as 700,000 tonnes under a government-to-government programme this year. "There is a lot of demand for G-to-G rice deals now. Malaysia wants to buy about 100,000 tonnes, while Mauritius needs about 50,000 tonnes, Indonesia needs 100,000 tonnes, and the Philippines is preparing to open bids for 600,000 tonnes," he said. The government estimates it is holding around 5.6 million tonnes of milled rice bought from farmers to support prices in the previous season. Source: Bangkok post
Feb 15, 2010 Release of rice in small lots The Commerce Ministry is planning to release of 1 million to 3 million tonnes from its rice stockpiles in small lots over the next few months, when many of the Kingdom's farmers suspend planting in a bid to solve a brown-planthopper infestation. A senior source from the ministry yesterday said it would release small stocks to the market, as prices should be on the rise due to a lower supply of rice from the second-crop harvest. Besides open bidding, the government will also consider releasing the stockpiles by other means in order to ensure the market price is not adversely affected.These include using the futures market and government-to-government contracts. The source said the release of stockpiled rice via the latter method would not affect the market price, as it is a special instrument the government uses for favoured nations. The government has about 5 million tonnes of rice in its stockpiles. The ministry last month cancelled bidding for 370,000 tonnes as it foresaw prices rising. Source : The Nation
FEB 5, 2010 South America to import more rice: Experts Rice experts in the United States feel that rice purchases by Brazil, South America’s biggest grower, Venezuela and Colombia are most likely to jump this year after drought followed by heavy rains caused by El Nino curbed production. Source: Oryza
Feb 4, 2010 Indonesia Aims Production Target Of 75.7 Mil MT Indonesia's agriculture ministry has revealed that the country is targeting annual rice output growth of 3.22 % per year over the next five years to reach an output of 75.7 million MT of unmilled rice in 2014. Source: oryza.com
Feb 4, 2010 South America To Import More Rice: Experts Rice experts in the United States feel that rice purchases by Brazil, South America’s biggest grower, Venezuela and Colombia are most likely to jump this year after drought followed by heavy rains caused by El Nino curbed production. Source: oryza.com
Feb 3, 2010 Philippines: El Nino To Cut Crop Yields The government of Philippines has released a warning that a possible drought caused by the El Nino weather system is very likely to slash the country's rice yields this year. Source: oryza.com
Jan 26, 2010 Thailand Cancels Sale of 375,000 Tons of Rice From Stockpiles Thailand, the biggest rice exporter, canceled a plan to sell 375,000 metric tons from state reserves because of low offer prices, Commerce Minister Porntiva Nakasai said today in Bangkok. The ministry received bids from 22 companies to buy 1.02 million tons, the Department of Foreign Trade said last week. The government had planned to sell 300,000 tons of white rice and 75,000 tons of glutinous rice. Source: Bloomberg.com
Jan 19, 2010 Govt to release its rice stock
Vichak Visetnoi, director-general of Foreign Trade Department, said yesterday that domestic supply for rice was declining because the harvest season was late this year. The total crop produced was 21.2 million tonnes of paddy rice, of which 92.28 per cent has entered the market. "There is a high demand now because both importing and exporting countries have suffered natural disasters," Vichak said. Bidders are required to have 2 per cent collateral of their bid value. Winners are required to sign a contract with the department within 10 days after the bidding results are announced, and need to start exporting their stocks within 45 days. The freight on board (FOB) price of jasmine rice is quoted at US$1,119 (Bt36,764) per tonne, increased from $1,116 per tonne on January 6. In addition, 100-per-cent rice is quoted $609, 5-per-cent rice is priced $577, while 10-per-cent sticky rice goes for $779 per tonne. Only 25-per-cent rice dropped from $508 to $505 per tonne. Source: The Nation
Jan 19, 2010 Govt to get tough on off-season rice crops; Dams fall, raising fear of water shortages.
The government wants to limit the amount of rice being grown because of the fear of a looming water crisis. Irrigation Department chief Chalit Damrongsak said at the weekend irrigation offices had been told to step up their efforts to dissuade farmers from planting a third crop this year. Many farmers were planting one crop after the other without giving their land the time necessary to recover. Mr Chalit said his department would support irrigation offices that come up with their own initiatives to discourage over-planting. One method adopted was the 12th Irrigation Office's helicopter drop of 500,000 leaflets warning farmers of the likelihood of a water shortage. The office also gave out a gold award worth about 40,000 baht to the farmer who held the leaflet with the same number as the government's winning lottery number. The award was an incentive to farmers to look carefully at the leaflets. "If the water shortage becomes even worse, the department might have to ban off-season rice farming," Mr Chalit said. The irrigation chief said water levels in dams and natural sources had fallen sharply. The level in natural water sources was lower than usual this year because only one storm had passed over the country. The situation is especially worrying in the Chao Phraya River basin, where the water level has fallen markedly. This is because the demand for water has soared in recent years following the increase in rice planting as a result of higher prices. High prices have convinced farmers to plant a second crop soon after harvesting the first crop, Mr Chalit said. A second crop is expected to be planted on an estimated 12 million rai this year, but the department only has plans to supply water for 9 million rai. Mr Chalit said farmers in the central provinces were now planting whenever they wanted, not just during the rainy season. The shortage of rainwater had seen the water levels in large dams such as Bhumibol and Sirikit to fall to about 70% of capacity. In other smaller dams, the levels have fallen to 50% to 60% of capacity. Drought is affecting about 30 provinces in the lower North and Northeast. The Irrigation Department will implement measures to limit water consumption between now and July so there are enough supplies to last the dry season Source: Bangkok Post
Jan 15, 2010 Drought hits rice harvests in Thailand, Philippines EL NIÑO threatens to parch rice crops in the Philippines, the world’s biggest importer, and in Thailand, the largest exporter, according to officials in both countries. “Between 20 and 30 percent of the areas planted to rice in provinces hit by El Niño are at risk of damage due to the dry spell,” Agriculture Undersecretary Emmanuel Paras said. “That’s why we’re planning measures to counter the effects,” including spending P2 billion.’’ Thailand’s rice output might drop 15 percent to as low as 27 million metric tons in the year that began Oct. 1, from 31.65 million tons a year earlier, Apichart Jongskul, secretary general of the Office, said in Bangkok Thursday. Lower output in Thailand may limit its capacity to boost shipments to meet additional purchases from importing countries including the Philippines, helping support global prices. Rice futures rose to a record in April 2008 in Chicago, and the Asian benchmark export price reached its highest level a month later as the Philippines boosted imports and exporters including India and Vietnam curbed shipments, adding to concerns of food shortages that sparked protests from Haiti to Egypt. While the US Department of Agriculture increased its estimate for this year’s global rice stockpiles, the extra supply was seen coming from India and China, which it did not forecast to increase exports. “Unfortunately, most of these additional stocks, with the exception of Thailand, will not be available to the market in case prices start to rise,” an economist in Manila said. Source: Bloomberg.com
Jan 7, 2010 Thailand sets rice export target of 9 million tons for 2010
Source: TANN
December 16, 2009 Guarantee price for PathumThani rice slammed Thai rice exporters have spoken out against the government's decision to increase the guaranteed price for Pathum Thani fragrant rice by Bt1,000 a tonne next year, as it will send the wrong signal to farmers to grow more of the strain at the expense of highvalue Hom Mali rice. Chookiat Ophaswongse, president of the Thai Rice Exporters Association, yesterday expressed concern that farmers would grow more Pathum Thani rice than Hom Mali due to higher returns under the guarantee scheme. "Thai Hom Mali has faced problems over export quality as some importers have comฌbined Hom Mali, which is the highest premium grade of fragrant rice, with Pathum Thani rice, which is of lower quality. Farmers may shift to growing more Pathum Thani as they can get higher yields and better returns," said Chookiat. The National Rice Policy Committee on Monday agreed to continue its incomeguarantee scheme for next year's crop by increasing the guarantee price from Bt10,000 a tonne to Bt11,000 for Pathum Thani rice. The committee also agreed to increase the maximum volume of Pathum Thani rice for farmers participating in the guarantee project next year from 25 tonnes to 30 tonnes. Other rice prices remain unchanged from this year's guarantee project: Bt10,000 a tonne for white rice, Bt9,500 for sticky rice and Bt14,300 for provincial fragrant rice. Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said the committee on Monday had also ordered the Foreign Trade Department to consider trading opportunities for rice in the governฌment's stockpiles through governmentto government contracts, the Agriculture Futures Exchange of Thailand and general bidding. Deputy Prime Minister Korbsak Sabhavasu has also ordered the ministry to stimulate exports next year by giving incentives to exporters, he said. The ministry yesterday reported the govฌernment's reference prices for rice for December 1631: Bt10,212 a tonne for 5percent white rice, Bt12,072 for Pathum Thani rice, Bt11,533 for sticky rice, Bt14,895 a tonne for jasmine rice. The guarantee price for Hom Mali rice is quoted at Bt15,300 a tonne. Source: The Nation
Dec 8, 2009 Govt to help by delaying release of stockpiles The government will delay the release of its farm stockpiles to allow farmers to sell their product first, a decision that will likely prove expensive given the government's Bt342-million monthly stockpiling bill. The government currently has on its hands 6 million tonnes of stockpiled rice; 1.76 million tonnes of tapioca chips; 407,426 tonnes of tapioca flour; and 348,000 tonnes of maize. Under Prime Minister Abhisit Vejjajiva's administration, the government has held farm stockpiles for six months. The government has said it will take steps to ensure that farmers are not adversely affected by release of its stockpiles. Earlier, Deputy Prime Minister Korbsak Sabhavasu said the government would select appropriate periods in which to release farm stockpiles, and that selling prices should be in accordance with the market price. "Whenever the government releases a stockpile in a big lot, traders stop purchasing from farmers. It lowers prices," Korbsak said. The Commerce Ministry recently negotiated the sale of some maize and tapioca stockpiles, but Korbsak refused to approve the deals, saying the selling price should have been higher given the high demand for the goods. According to the Commerce Ministry, it is costing the government Bt342 million a month to stockpile rice, tapioca and maize. It costs Bt216 million a month to stockpile rice, most of this going towards renting warehouses at a price of Bt36 per tonne. Stockpiling maize costs Bt26 million a month (Bt60/tonne for warehousing and Bt15/tonne for fumigation). It costs Bt90 million monthly to stockpile tapioca: Bt80 million for tapioca chips and Bt10 million for tapioca flour. A source at the ministry said the government must consider carefully whether its policy to stock farm goods is worth the cost. "[The stockpiled] farm goods are deteriorating in quality daily. If the government holds its stockpiles too long, it must shoulder high storage expenses each month even as the goods deteriorate to the point where they cannot be sold," said the source. However, Korbsak said the government may have no choice but to continue shouldering the costs, as the government's aim is to ensure high prices for farmers. Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said the system had caused a slowdown in the country's rice-trading system. "The rice price would increase dramatically if the government released its stockpiles, as importers have delayed placing rice orders in expectation that the government will have to release its stockpiles someday," said Chookiat. He called on the government to release some of its stockpiles via the futures market, government-to-government projects, and direct sales to exporters. However, stock releases should be done in small lots to minimise any impact on the market, Chookiat cautioned. Source: The Nation
Dec 3, 2009 Commerce Min keeps watch on situations in Dubai, Vietnam The permanent secretary for commerce affirms devaluation of the Vietnamese currency will not hurt Thai rice export as Vietnam's output scale is not as large as Thailand's. He also pledges to keep a close watch on the Dubai World crisis fallout. Permanent Secretary for Commerce Yanyong Puangrach admitted the debt crisis facing Dubai World must be kept under a close watch for its effects on Thailand's economic situation. Yanyong noted the Dubai World fallout will have a slight impact on the export sector. He expected oil price could slide down over possible increase in Dubai's oil output He also said the devaluation of the Vietnamese currency may draw investments from Thailand and have negative impact on several export businesses, such as clothing, apparel, footwear and computers. Yanyong, however, believes the Vietnamese dong's devaluation will post no big threat to Thailand's rice export as the supply from Vietnam is still not sufficient to compete with Thailand's. Meanwhile, Kasikorn Research Center forecasts the country's rice export in 2010 will enjoy a significant growth as world rice output would decline due to climate change while India and the Philippines need to import more rice as they are still reeling under the effects of recent natural disasters. The center expects the quantity of the 2010's rice export can reach as high as 10 million tons, a level achieved in 2008, or more. However, the forecast is made on the assumption that the government and exporters can successfully penetrate into new markets. In addition, the world price of rice is also expected to increase in line with global economic conditions. Source: TANN |
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