Cambodia Rice News: World Rice News: Thailand Government Urged to Build 10 Million Ton Storage Space for New Rice
Thailand Government Urged to Build 10 Million Ton Storage Space for New Rice
Thailand’s Public Warehouse Organization (PWO) is urging the government to allow private companies to build additional storage space for at least 10 million tons to help the government run the rice mortgage program in future.
The executive VP of PWO revealed that it is expected that the government would have to store about 6.5 million tons of rice from the new harvesting season, while the PWO can store only 4.5 million tons.
The official suggested that about 10 private companies be allowed to construct storage space of about one million tons each. He said, "If 10 companies joined the plan and each has the capacity of one million tonnes, then we could hold up to 10 million tonnes and not be concerned about slow sales."
The PWO is considering allowing private traders to store rice under rent to the government and reducing the deposit from 100% of rice value to about 70% for private companies which join the rice mortgage program.
Thai rice exports have plunged over 45% this year after the mortgage scheme pushed rice prices higher by about $100 per ton than rivals Vietnam and India. Slow sales have resulted in record high stocks of about 11 million tons rice. Thailand's rice production in 2012-13 is estimated to reach 21.1 million tons, up 3% from 2011-12, and the government has said that the rice mortgage program will continue to 2013.
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