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.

Source: Oryza/16August2012

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Cambodia Rice News: World Rice News: In Defense of Rice Scheme, Thai Officials Say Scheme Helps Other Rice Exporters

In Defense of Rice Scheme, Thai Officials Say Scheme Helps Other Rice Exporters

Thailand’s Permanent Secretary to the Commerce Ministry says representatives from the USDA plan to visit Thailand to inspect whether the rice mortgage scheme violates any World Trade Organization (WTO) rules on export subsidies, adding that such fears are unfounded.

The Commerce Ministry official said that the rice mortgage program boosts farmer income and does not lower rice prices, and thus does not give Thailand an advantage on international export markets. And, the money spent under the program cannot be called export subsidies as the money remains within the country, he added.

The official said, "No damage is incurred in the international market. The money spent on the rice pledging scheme circulates within the country…I wonder on what grounds the US is accusing us. I am ready to clarify.”

Rather than being harmed, the Commerce Secretary pointed out that the U.S. and other rice exporting countries benefit from the Thai scheme.

"A subsidy means dumping prices and hurting the competition of rivals but in this sense [Thailand's subsidy] is designed to support [farm] income and help boost domestic and export prices.” Adding “Other rice exporting nations such as the U.S. will also benefit from rising prices.”

He also noted that the subsidies of $5 billion per year that the U.S. pays its farmers and several other policies have distorted the rice market. The U.S. $158 million food aid program in Africa had hurt Thai rice exports, he alleged.

Meanwhile, the U.S. embassy has denied any U.S. plan to send USDA officials to Thailand to inspect the rice mortgage program, adding, "We have no formal position on the new Thai rice scheme, just as we have no formal position on the one before it," said embassy spokesman.

Source: Oryza/10August2012

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Cambodia Rice News: World Rice News: India, Vietnam rice exports to surpass Thailand in 2012

India, Vietnam rice exports to surpass Thailand in 2012

PHUKET: A Thai trade researcher has concurred with a recent prediction by the United States Department of Agriculture (USDA) that India and Vietnam will export more rice than Thailand this year.

Thanawan Phonwichai, the Director of the Business and Economics Forecasting Center at the Thai Chamber of Commerce University said that Thailand is expected to lose its crown as the world’s top rice exporter due to an increasingly competitive regional market.

"Consistent with the USDA’s prediction, India this year is producing a lot of rice at lower prices. This has caused Vietnam to lower its prices to be more competitive.

"At the same time Thailand has not lowered its prices due to its base costs being a lot higher. As a result, we expect that India will export 8 million tonnes this year, followed by Vietnam exporting about 7, and Thailand just 6.5 million tonnes," he said.

According to the USDA, the predicted figure will equate to a 39% annual decline in the Kingdom’s rice exports.

Mr Thanawan added that he expects Thailand to reclaim its top position in 2013, however, when his department predicts that Thailand will export 8mn tonnes, followed by Vietnam with 7mn tonnes and India at 6mn tonnes.

In a related article by The Nation, it was reported that Thailand only exported 4.7mn tonnes between October, last year and July, 2012, about half when compared to the same period a previous year, when nearly 9mn tonnes were exported.

Export value also declined from 160 billion baht in the previous year to about 100bn baht this year, according to the Thailand Development Research Institute (TDRI).

The TDRI attributed the fall mainly to the government’s rice-mortgage policy.

The rice-pledging policy had destroyed the competitiveness of Thai rice in the world market because the government’s mortgage prices were a lot higher, TDRI President Nipon Poapongsakorn said.

Mr Nipon pointed out that Thailand would suffer a loss of 87bn to 100bn baht immediately if the government decided to release 10.2 million tonnes of rice in its stocks, noting that the pledging price is high while the current market price is still low.

Thailand will end up losing US$75 to US$77 (2,364 to 2,427 baht) per ton if it sells at the current market price, and this would not include the cost of pledging – about 260bn baht.

"Thailand is losing huge amounts on subsidies that are helping, not just poor farmers but also landlords and rich farmers, because the government is accepting all the rice that is entered in the pledging scheme.

"More than 52% of the rice entered in the pledging scheme comes from rich farmers," Nipon explained.

He added that if the government changed its pledging measure to providing direct subsidies to a particular group of small farmers, then it would only spend about 30bn to 40bn baht a year.

According to TDRI, about 80% of Thai farmers are small, producing only about 10 tonnes of rice per harvest.

Source: PHUKET NEWS/7August2012

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Cambodia Rice News: World Rice News: Asian Rice Quotes Mixed

Asian Rice Quotes Mixed

Thai rice sellers lower their quotes for 5% broken rice by about $5 per ton to about $560 - $570 per ton and increased their quotes for Parboiled rice by about $5 per ton to about $560 - $570 per ton. Viet rice sellers increased their quotes for 5% broken rice by about $5 per ton to about $410 - $420 per ton. Indian rice sellers increased their quotes for 25% and 100% broken rice by about $5 and $10 per ton respectively. Pak rice sellers kept their quotes unchanged.

Thai 5% rice is quoted about $560 - $570per ton, down about $5 per ton from Wednesday and about a $150 per ton premium over Viet 5% rice shown around $410 - $420 per ton, up about $5 per ton from yesterday. Indian 5% rice is quoted around $415 - $425 per ton, about a $30 per ton discount to Pak 5% rice shown around $445 - $455 per ton.

Thai 25% rice is quoted about $545 - $555 per ton, about a $170 per ton premium over Viet 25% rice indicated around $375 - $385 per ton. Indian 25% rice is quoted about $380 - $390 per ton, up about $5 per ton from Wednesday and, about a $15 per ton discount to Pak 25% rice shown around $395 - $405 per ton.

Thai parboiled rice is quoted about $560 - $570 per ton, up about $5 per ton from yesterday. Indian parboiled rice is quoted around $400 - $410 per ton, about a $70 per ton discount to Pak parboiled rice shown around $470 - $480 per ton.

Thai broken rice, A1 Super, is quoted about $505 - $515 per ton, about a $155 per ton premium over Viet broken rice shown around $350 - $360 per ton. Indian broken sortexed is quoted about $345 - $355 per ton, up about $10 per ton from Wednesday, and about a $10 per ton premium to Pak broken sortexed rice indicated around $335- $345 per ton.

Source: Oryza/3August2012

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Cambodia Rice News: Thailand Government Selling Rice in Secret Sales, Claim Reports

Thailand Government Selling Rice in Secret Sales, Claim Reports

Local sources in Thailand have accused the government of releasing about 3 million tons between January and June 2012 favoring some private exporters, while keeping the sale a secret as the prices were below the government purchase price.

Sources claimed that about 1.9 million tons of the secret sales were from old stocks, while about 1.1 million tons were released from the last harvest. They say that the average prices that buyers paid the government were around $500 per ton, basis milled.

The reports also say that only a few exporters, who are close to the government, were involved in the secret sale and the exporters were referred by the Prime Minister for possible rice trade in her talks with Indonesian and Malaysian importers. Some exports to Iraq have taken place at “very low prices” with the involvement of Department of Foreign Trade, said the sources.

However, the Commerce Minister refuted such claims, saying that the government has sold rice only in government-to-government deals, and some broken milled rice locally. He added that an investigation is underway to verify reports of the alleged secret sale.

Source: Oryza/25July2012

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Cambodia Rice News: Thai rice exports decline in first half of 2012 due to unattractive prices

Thai rice exports decline in first half of 2012 due to unattractive prices

BANGKOK, 25 July 2012 – The Thai Rice Exporters Association has revealed that the quantity of rice exports in the first half of this year has reduced by nearly half compared to the same period last year.

Thai Rice Exporters Association Chairperson Kobsuk Iamsuree said that Thai exporters are suffering price competitions, as Thai rice price is higher than those of other countries.

Thailand has fallen from a world ranking as the number one rice exporter for several years. It is now the third in the ranking. The association said that from the beginning of the year until July 10th, India exported the highest volume of rice in the world at 3.61 million tons, followed by Vietnam at 3.52 million tons.

In the first half of this year, Thailand exported 3.45 million tons of rice, worth 71 billion baht, a sharp fall from the same period last year, when 108 billion baht worth of rice was exported. Major importers of Thai rice are South Africa, ASEAN, and the Middle East.

The association expects the country to export around 3.05 million tons of rice in the second half, which will make the overall rice export in 2012 to stay around 6.5 million tons, a 39% decrease. India and Vietnam are expected to export 8 and 7 million tons respectively this year.

With India having enough rice reserve to export all year round and weak rupee, Ms Kobsuk said Thai rice exporters will continue to suffer. She said the low price from India is pushing the world rice price down; Vietnam also reduced its price to even lower than the Indian price in February.

Thai Rice Exporters Association said it is willing to discuss with the government ways to help release accumulated rice in government stocks.

Source: Pattayamail/26July2012

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Cambodia Rice: World Rice News: Thailand Rice Exporters Request Immediate Release of Rice Stocks

Thailand Rice Exporters Request Immediate Release of Rice Stocks

Thai rice exporters have urged the government to release rice stocks immediately in transparent bids as their own stocks have declined due to the rice mortgage scheme.

Exporters say that the government rice mortgage scheme has swelled government stockpiles while the rice stocks of local traders and exporters have dipped significantly.

However, it is unlikely that the government will release rice before next month. Yesterday, the Commerce Minister said yesterday that the government is planning to release rice from stockpiles in July, after the phase 2 of the mortgage scheme ends. He also hinted that the government is unaffected by the slump in rice exports because it has struck several government to government deals with several countries.

The Commerce minister revealed that Thailand recently sold 260,000 tons of rice to Côte d'Ivoire and 250,000 tons to Bangladesh, and that Thailand is in talks with the Philippines and Indonesia over rice exports.

Source: Oryza/12June2012

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Cambodia Rice: World Rice News: Thailand will still be top rice exporter

Thailand will still be top rice exporter

Thailand would be able to maintain its position as the world’s largest rice exporter this year, permanent secretary for commerce Yanyong Puangraj said on Tuesday.

Thailand exported 2.6 million tonnes of rice, worth 53.67 billion baht, from Jan 1 to May 17 and became the world's largest exporter.

The US took second place, exporting two million tones of rice and Vietnam third place with its 1.6 million tonnes of rice exported during the same period, said Mr Yanyong.

The average rice export price increased by 20 per cent to US$669 per tonne, from US$566, showing that the world market still wanted Thai rice even with its price raised by the price pledging scheme, he added.

The permanent secretary expected rice exports would total at least nine million tonnes this year.

“Thailand will be able to maintain its world number one rice exporter status. In the past we focused on export quantity in keeping the championship post. But now we will also emphasise our rice’s quality standard and are looking at more premium markets,” Mr Yanyong said.

He said his ministry expected the world market price of Thai Hommali rice would increase by five per cent to US$1,200 a tonne and by 15 per cent to US$700 per tonne for white rice. This would allow the domestic price of paddy to stand at 15,000-20,000 baht per tonne.

Kobsuk Iamsuree, chairwoman of the Thai Rice Exporters Association, disagreed with the ministry’s rice exports projection for 2012. She said her association still predicted rice exports for the year at only 6.5 million tonnes.

If the government is to increase rice exports to nine million tonnes, as planned, it would have to get it done through a government-to-government selling agreement, said Ms Kobsuk.

The baht had now weakened to 31 baht to the US dollar, lowering the price of Hommali rice to US$1,080 a tonne, from US$1,100. If the rice price is to reach US$1,200 a tonne, the value of the Thai currency must be strengthened to 25-26 baht to the dollar, she said.

“Through goverenment-to-government negotiations, the state might get a better price, but it is certain that the price would not be that high if the deals are made between private firms,” said Ms Kobsuk.

Source: Bangkokpost/22May2012

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